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Tuesday, 8 January 2013

What does my Stock and Fund Portfolio currently look like?

My current portfolio of stocks and managed (mutual), hedge and index funds is shown below.


The current valuation would be great if I didn't currently owe about $493,000 against this portfolio - either via margin loans secured against the portfolio value, or other loans (for example a 'portfolio loan' secured against the equity in our real estate holdings) that were used to purchase these investments pre-GFC ("it seemed like a good idea at the time").

Although the 'net equity' is still negative (about -$17,000), this is an improvement compared to the situation over the past few years. Based on predictions of dividends and capital growth for 2013 that I have plucked out of thin air, my "target" for the portfolio value at the end of 2013 is about $495,000. Aside from funding the loan interest payments (out of a combination of dividend payments, PAYG tax refund and salary income) I also "plan" on reducing the total loan liability to a nice, round $490,000 (although I haven't yet worked out where I'm going to get the $3,000 from, as its not in my budget plan!). If all goes to plan my portfolio may have a postive net equity by the end of 2013. Still extremely sad considering my portfolio net equity was around $450,000 during 2007...

The 'hedge' funds (that turned out not to be hedged against market declines) are listed at the values which will apply at their maturity dates (due over the next few years). These won't pay out any dividends or go up in value, but I'd get a lot less if they were sold prior to their maturity dates (not of of them are even liquid at the moment).

Aside from eliminating the hedge fund investments and paying down some of the loan as they reach maturity, I don't currently plan on making changes to my portfolio. The exeptions being a slight increase in some holdings due to dividend reinvestment plans that are currently in place, and, possibly, offloading IPE and Elders shares if they go up in value as the economy improves.

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