The wind sits within the shoulder of your sail
And you are stay’d for.
Shakespeare, Hamlet, Act I: Scene 3
This is my sixty-ninth monthly portfolio update. I complete this regular update to check progress against my goal.
Portfolio goal
My objective is to maintain a portfolio of at least $2,620,000 through 2022. This should be capable of producing an annual income from total portfolio returns of about $91,600 (in 2022 dollars).
This portfolio objective is based on an assumed safe withdrawal rate of 3.5 per cent.
A secondary focus through 2022 will be achieving the minimum equity target of $2,100,000.
Portfolio summary
| Vanguard Lifestrategy High Growth Fund | $714,600 |
| Vanguard Lifestrategy Growth Fund | $38,340 |
| Vanguard Lifestrategy Balanced Fund | $69,879 |
| Vanguard Diversified Bonds Fund | $88,511 |
| Vanguard Australian Shares ETF (VAS) | $359,644 |
| Vanguard International Shares ETF (VGS) | $359,544 |
| Betashares Australia 200 ETF (A200) | $271,514 |
| Telstra shares (TLS) | $2,116 |
| Insurance Australia Group shares (IAG) | $5,891 |
| NIB Holdings shares (NHF) | $9,816 |
| Gold ETF (GOLD.ASX) | $112,897 |
| Secured physical gold | $17,951 |
| Bitcoin | $327,060 |
| Raiz app (Aggressive portfolio) | $19,478 |
| Spaceship Voyager app (Index portfolio) | $3,121 |
| BrickX (P2P rental real estate) | $4,632 |
| Total portfolio value | $2,404,994 (-$36,598) |
Asset allocation
| Australian shares | 39.5% |
| Global shares | 28.9% |
| Emerging market shares | 1.6% |
| International small companies | 2.1% |
| Total international shares | 32.6% |
| Total shares | 72.1% (-7.9%) |
| Total property securities | 0.2% (+0.2%) |
| Australian bonds | 2.6% |
| International bonds | 6.0% |
| Total bonds | 8.6% (+3.6%) |
| Gold | 5.4% |
| Bitcoin | 13.6% |
| Gold and alternatives | 19.0% (+4.0%) |
Presented visually, the chart below is a high-level view of the current asset allocation of the portfolio.
Comments
This month overall losses of around $36,000 were sustained in the value of the portfolio, reducing the portfolio by around 1.5 per cent in total.
With this outcome, over a third of the increases of July were essentially lost. Over the past 12 months, the majority of months have now registered as delivering portfolio losses.
The portfolio now sits below the overall revised portfolio goal of $2.62 million at the end of the month, as it has since the end of May.
Losses occurred broadly across much of the portfolio through the month.
Bitcoin holdings were reduced in value by around 14 per cent, as the prospect of higher interest rates were absorbed by financial markets. These losses were principally responsible for the total fall in portfolio value.
The value of international equities also fell from some initial gains within the month, to end lower, by around 0.8 per cent. Australian shares managed to end the month around 1.0 per cent higher. Bonds also fell in value sharply, by 2.4 per cent and gold holdings fell by 0.7 per cent also.
Continue reading “Monthly Portfolio Update – August 2022”