Portfolio Update September 2020 – COVID recovery

Girl statue Wall street
Girl status wall street by Jouwen Wang

Here is my current asset allocation in September 2020. Some of the current allocation % are way off the new target %. REIT is a bit too risky for me at the moment. I am not a fan of its recent performance and how much risks REIT assets carry. I will actively reduce my exposure to it in the coming years.

Bonds through Vanguard index funds is the latest significant addition to the portfolio. Thanks to the availability of https://www.vanguard.com.au/personal/home in Australia.

Since my the last update, COVID happened, the market retracted around 30% at the beginning of March but it has since bounced back and most asset classes are now back to pre-COVID level or higher. Long term investors shouldn’t care much about short-term market volatility.

The Australian REIT asset class seems to be the one that makes the slowest price recovery. I think it will take a while for it to get back to pre-pandemic level.

TypeAllocation %Target %
Emerging Markets6.6%7.0%
International (non-US)7.2%8.0%
Fixed + Cash9.8%10.00%

Keep working hard towards your personal financial goals, and stay sane!

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