Month: March 2020

Monthly Portfolio Update – February 2020

Posted on by The FI Explorer
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No one would have crossed the ocean if he could have gotten off the ship in the storm.
Charles Kettering

This is my thirty-ninth portfolio update. I complete this update monthly to check my progress against my goal.

Portfolio goal

My objective is to reach a portfolio of $2 180 000 by 1 July 2021. This would produce a real annual income of about $87 000 (in 2020 dollars).

This portfolio objective is based on an expected average real return of 3.99 per cent, or a nominal return of 6.49 per cent.

Portfolio summary

  • Vanguard Lifestrategy High Growth Fund – $772 191
  • Vanguard Lifestrategy Growth Fund  – $44 099
  • Vanguard Lifestrategy Balanced Fund – $81 139
  • Vanguard Diversified Bonds Fund – $111 360
  • Vanguard Australian Shares ETF (VAS) – $174 810
  • Vanguard International Shares ETF (VGS) – $32 294
  • Betashares Australia 200 ETF (A200) – $250 949
  • Telstra shares (TLS) – $1 844
  • Insurance Australia Group shares (IAG) – $8 083
  • NIB Holdings shares (NHF) – $5 580
  • Gold ETF (GOLD.ASX)  – $114 375
  • Secured physical gold – $18 455
  • Ratesetter (P2P lending) – $13 971
  • Bitcoin – $149 920
  • Raiz app (Aggressive portfolio) – $17 424
  • Spaceship Voyager app (Index portfolio) – $2 446
  • BrickX (P2P rental real estate) – $4 485

Total portfolio value: $1 803 425 (-$69 900 or -3.7%)

Asset allocation

  • Australian shares – 42.1% (2.9% under)
  • Global shares – 22.3%
  • Emerging markets shares – 2.3%
  • International small companies – 3.1%
  • Total international shares – 27.7% (2.3% under)
  • Total shares – 69.8% (5.2% under)
  • Total property securities – 0.2% (0.2% over)
  • Australian bonds – 4.6%
  • International bonds – 9.7%
  • Total bonds – 14.3% (0.7% under)
  • Gold – 7.4%
  • Bitcoin – 9.7%
  • Gold and alternatives – 15.7% (5.7% over)

Presented visually, below is a high-level view of the current asset allocation of the portfolio.

Pie Feb 20

Comments

Equity markets fell significantly this month, resulting in a portfolio loss of around $70 000. This is the largest monthly fall across the three years of this record in dollar terms, and the third largest as a proportion of assets.

MPV Feb 20The falls follow a large increase in the portfolio value last month, and have occurred amidst increasing global impacts and fears from the spread of the Corona virus. The losses are mainly in Australian and global equities and have been concentrated in the last two weeks. Continue reading “Monthly Portfolio Update – February 2020”