Portfolio return for June 2008

My portfolio lost 5.29% in June 2008, bringing the year-to-date (YTD) return to a loss of 2.92%. This is the largest monthly loss my portfolio has ever experienced since I started tracking the monthly performances in Jan 2004. This loss dwarfed the next largest loss of 3.82% in November last year.

The YTD return of the benchmark, a 50:50 split between the Vanguard LifeStrategy Moderate Growth fund and the Vanguard LifeStrategy Gowth fund, is -8.75%.


Individual Asset Classes

As we can see from the chart below, there is no place to hide among the equity asset classes in June. All of them experienced losses, with US REITs dropping a whopping 12%. Only PME returned relatively unscarthed (a loss of 1%).

Portfolio Movements

Topped up most of the equity asset classes this month, particularly on US REITs.

Another change: due to a financial realignment, I had a lump sum amount to invest this month. Besides using it to top up the equity asset classes, I decided to also use it to up my fixed income allocation from 30% to 32%. I had stuck to the approximately 70/30 (equity/bond) allocation since 2003. Now, with a larger portfolio, and closer to my financial goals, I think it is an appropriate time for me to gradually reduce the portfolio risk. I intend to stretch this out over the next several years until an allocation of 60% equity and 40% fixed income is reached.

The allocation, as of the end of June, is shown below:

Reference: Madsinger’s monthly report.

2 Comments

  1. DJ

    Would you consider updating “My Portfolio Asset Allocation” page?

    Reply
  2. indexfundfan (Post author)

    DJ, thanks for your comment. It’s on my to-do list. Just need to find some time…

    Reply

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