Thursday, January 7, 2010

Portfolio Update December 2009

2009 Year to date (YTD) Return

Equity(Include Funds) 

Direct Shareholding

Dividend/Coupon/Interest received for 2009


Absolute Return Since Nov 2007

Equity(Include Funds)
Direct shareholding

1) I made a mistake in calculating the YTD returns for the equity & direct shareholding. I forgot to add in the subsequent capital invested this year. The YTD returns now reflect correctly the new capital infusion this year. I have also changed the 2nd heading of Cumulative Return to Absolute Return to reflect that the 2nd set of figures is to track how my portfolio have grown against the total amount of capital invested since Nov 2007. For anyone who is interested in the exact definition and formula for tracking returns, this is what I am using :-
  • What is Total Return?

    The rate of return that approximates the position's or portfolio's Internal Rate of Return by taking cash flows into account using the Total Return (Money Weighted Return) calculation incorporating realized gains and losses from historical transactions as well as the effects of currency translations of underlying assets held in other currencies translated at historical rates. The calculation includes accounting for return generating events such as dividends and realized gains and losses from purchased and sold positions that occur over the life of the portfolio. Cash flows into and out of the position / portfolio are time weighted to their economic impact to the portfolio.

2) Bought ANZ Convertible Preference Share (CPS2) which is currently yielding 5.85%(after tax) but i figure it could go up to 7+% as the coupon rate is fixed quarterly using the 90 day aussie bank bill rate plus 3.1% * (1-30% tax). The quarterly reset of the coupon rate means CPS2 will be better value-protected as it will be rising in tandem with interest rate as compared to fixed coupon bonds. CPS2 shares pays quarterly and are convertible to ANZ shares in 2016.

3) Not a bad year with the resumption of dividends as I allocate from cash to stocks. Barring any unforeseen circumstances, I should be seeing $150,000 to $200,000 in dividends/interest income in 2010. Let's all pray to our Fortune God and wishing everyone a Happy and Prosperous NEW YEAR! :)

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