Wednesday 30 October 2013

Asset allocation update

One of my first posts back in November 2012 contained a breakdown of my asset allocation between property, pension funds, cash and directly held investments.  As we're about a year on from this i thought i'd share an update.

Property 40% (was 52% in Nov 2012)
Whilst the value of my property has actually increased over the last year, its proportion of my overall asset base has decreased mainly as a result of good income, a strong savings rate and a few one off gains.  Going forward this will probably continue to decline unless i make any new property purchases.

Pensions 15% (was 15%)
The value of my pension funds have grown steadily and in line with my overall net worth growth, due to regular monthly contributions by myself and my employer.  This proportion is likely to stay fairly stable going forward unless there are any major market rallies or falls.

Direct Investments 10% (was 4%)
I've significantly increased the size of my investment portfolio over the last year, primarily in high dividend ETFs.  I'm expecting to continue to steadily grow this proportion going forward.

Cash 35% (was 29%)
Despite growing my investment portfolio throughout the year, cash balances have continued to rise due to high income and savings. Whilst i'd like to manage this percentage down, it is likely to be a slow and steady change unless any individually large investment opportunities (eg property) arise.


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