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.
| Type | Allocation % | Target % |
| Australia | 22.8% | 25.0% |
| Emerging Markets | 6.6% | 7.0% |
| US | 8.7% | 10.0% |
| International (non-US) | 7.2% | 8.0% |
| REIT | 12.0% | 6.0% |
| Bonds | 32.9% | 34.0% |
| Fixed + Cash | 9.8% | 10.00% |
| 100.0% | 100.0% |
Keep working hard towards your personal financial goals, and stay sane!