Portfolio Update December 2020
Closing out a turbulent year with markets recovering strongly and a successfully rebalanced portfolio reducing REIT exposure.
2020 was almost over — and what a year it had been. By the end of this extraordinary year, sharemarkets around the world were recovering more strongly than ever. Of course, the sharemarket is not always representative of how the broader economy is doing. It would be nice if things were simpler and more straightforward, but that is rarely the case with investing.
⚖️ Rebalancing Progress
I managed to rebalance some of the portfolio allocations in line with what was planned back in September. The key move was reducing exposure to REITs as much as possible without triggering too much capital gains tax — hopefully setting the portfolio up well for the next few years.
🎯 Current Allocation
| Asset Class | Allocation | Target |
|---|---|---|
| Australia | 29.67% | 30.0% |
| Emerging Markets | 7.78% | 8.0% |
| US | 9.97% | 10.0% |
| International (non-US) | 8.21% | 8.0% |
| REIT | 5.52% | 4.0% |
| Bonds | 29.70% | 30.0% |
| Cash + Gold | 9.16% | 10.0% |
✅ The allocation was now much closer to target across the board. Australian equities, US equities, and bonds were all sitting right where they should be. The REIT position, while still slightly above target, had been reduced meaningfully from the 12% it sat at in September.
💭 Reflections
This was a year that tested every investor’s resolve. The March crash, the swift recovery, the ongoing uncertainty — through it all, sticking to the plan and rebalancing methodically proved to be the right approach.
Keep reaching your goals, and be kind to others.