Whenever you request guidance on how to invest to reach FIRE, you will often receive the comment you should invest in Emerging Markets e.g. through IWDA + EMIM. But should you?
5. Quarterly Portfolio Report – Q3 2019
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Last Updated on October 21, 2019 by Mr. FightToFIRE
What a quarter! The third quarter of 2019 finished almost two weeks ago now. I’m not exaggerating when I say this was a life-changing period for me.
Two major changes took place: I moved out and live with my girlfriend, and I signed the sales contract (AKA “compromise”) for my very own apartment in the center of Brussels. These decisions had a huge impact on my net worth for several reasons.
From cash to asset
The purchase created the biggest impact. I had the 17,625 EUR moved from my cash account (10,000 savings + 7,625 checking) to an illiquid asset, my apartment. More importantly, 100,000 EUR of ~ 420K cost is covered by an inheritance.
I will of course not get this as cash but it will directly pay a part of the apartment.
As it is part of my assets, it’s part of my net worth. While a positive effect on my net worth, the other side is that I still have to finance roughly 280K (420K – 100K – 40K (20K in projected future savings) = ~280K). This will happen through a mortgage which I’m in the process of getting.
This in theory will push me well into negative net worth. To keep things clear, I will have the mortgage and the inheritance as a separate part of my quarterly overviews.
My first home
A second reason that caused a shift in my net worth is moving out of my parents’ home and living at my own rental apartment together with my girlfriend. Before we could move into our own place, we had to transfer 3 months of rent or 1835 EUR, into a dedicated and locked savings account. I will get the money (+ interest back) once we move out.
With all of that said, I can look at a net worth growth of 8.75% this quarter.
To be clear, this includes deposits but not my debit account.
|Quarter||Amount (€)||QoQ (%)||QoQ (€)|
Personal portfolio overview
The recovery continued this quarter so my portfolio reached 8.97% which is solid increase of 7.69%.
I now have a total personal portfolio of 27,225.03 EUR (incl. cash).
This is all thanks to the nice recovery the market made, especially my euro stocks and mainly my ETF’s over the last three months and some dividends. The cash I have left is 83.64 EUR.
|Symbol||Description.5||Sector||Quantity||Close Price||Cost Basis||Current Value||Unrealized Profit/Loss||% Gain/Loss|
|AED.DIV||AEDIFICA – unlisted coupon||Real estate||20||2.38||46.77||47.60||0.83||1.77|
|CSEMUS||ISHARES MSCI EMU SML-C ACC ETF||Broad||3||198.70||606.78||596.10||-10.68||-1.76|
|SXR1||ISHARES CORE MSCI PACIF X-JP ETF||Broad||10||135.86||1,173.47||1,358.60||185.13||15.77|
|DX2J||X MSCI EUROPE SMALL CAP ETF||Broad||20||43.39||861.98||867.80||5.81||0.68|
|CSSX5E||ISHARES CORE EURO STOXX 50 ETF||Broad||3||114.84||311.57||344.52||32.95||10.57|
|HOMI||HOME INVEST BELGIUM||Financials||8||116.50||702.83||932.0||229.17||32.60|
|IUS3||ISHARES S&P SMALL CAP 600||Broad||40||57.82||2,268.46||2,312.80||44.34||1.95|
|RBOT||ISHARES AUTOMATION&ROBOTIC-A ETF||Broad||157||6.93||1,014.48||1,087.85||73.37||7.23|
|SBIO||INVESCO NASDAQ BIOTECH ETF||Broad||30||29.09||923.30||872.85||-50.45||-5.46|
|SPYD||SPDR US dividend aristocrats||Broad||43||51.90||2042.13||2,231.70||189.57||9.28|
|SXR8||Ishares Core S&P500 UCITS||Broad||14||270.00||3,366.92||3,780.00||413.08||12.27|
|XLVS||Source HLTH care S&P US SECT||Broad||7||372.23||2,452.53||2605.61||153.08||6.24|
The below table contains my stocks denominated in USD. Since the currency rate fluctuates daily, it impacts the total portfolio wealth counter. To keep it simple I will use the rate applicable at the time of writing every quarter (give or take a day). You can find the rate used at the top of this page.
Unfortunately, unlike my euro stocks this quarter, my dollar-based stocks actually got worse.
Coming from -5,32% I made a small decline to -11.27%. In other words I lost -11.27 – (-5.32) = 5,95%.
|Symbol||Description||Sector||Quantity||Close Price||Cost Basis||Current Value||Unrealized Profit/Loss||% Gain/Loss|
|BABA||Alibaba Group Holding||Communications||5||167.23||832.89||836.16||3.26||0.39|
|CSKR||ISHARES MSCI KOREA USD ACC||Broad||5||136.76||887.58||683.80||-203.78||-22.95|
|IBB||ISHARES NASDAQ BIOTECHNOLOGY||Broad||5||99.50||518.34||497.50||-20.84||-4.02|
|IEMA||ISHARES MSCI Emerging Markets ACC||Broad||28||32.15||1030.58||900.20||-130.38||-12.65|
Actively managed portfolio
The Beobank managed funds keeps growing at a steady pace though it has showed a more flat curve the last month.
The previous return was 13.09% which has grown to 15.29%. I got a small 2.02% gain this quarter.
|Nr.||Inception date||Description||Current Value||Cost Basis||Unrealized Profit/Loss||% Gain/Loss|
|1||September 2016||Actively managed fund||22,572.81||19,578.97||2,993.84||15.29|
As with my other portfolios, the pension fund recovered/grew as well.
From a 6.62% to 7.63%. In other words, a growth of 7.63 – 6.62 = 1.01%.
|Nr.||Inception date||Description||Sector||Current Value||Cost Basis||Unrealized Profit/Loss||% Gain/Loss|
|1||September 2013||Dynamic pension savings fund||Broad||7316.96||6797.82||519.14||7.63|
I call them investments but they are more like speculative positions. This is with good reason. This quarter these riskful investments got hammered once again.
Especially my forex account lost about half it’s value. Because of this and from all the years I’ve been going at it, I decided to call it quits (for now).
I took this as a calculated risk (especially the cryptocurrency one) expecting to reap the benefits in the longer term but as it’s just not going anywhere I decided to put my focus elsewhere.
I will withdraw my forex account and put it as cash for now.
Forex managed account
|Nr.||Inception Date||Description||Final Value||Cost Basis||% Gain/Loss|
|1||January 2016||Actively managed forex account||0 (-4457.00)||13825.15||-67.76|
Coinbase cryptocurrency account
My crypto wallet dropped once again. The profit made last quarter is gone again and back is the red.
|Nr.||Inception date||Coin||Cost Basis||Current Value||% Gain/Loss|
The big change here is of course the move of the 10,000 EUR to my checking account. I merged this together with ~7K that was already on it. This then got transfered the promotor as a 5% deposit.
I now have only 2,510.99 EUR as an emergency fund. I’d like to top this up again once I signed the mortgage contract this or next month.
|Nr.||Inception date||Description||Deposits||Current Value||% Gain||Interest Rate|
|1||July 2018||Regulated limited high(er) interest savings account||2,500||2,510.99||0.4396||0.20% (base rate) + 1% (fidelity premium)|
|2||August 2019||Regulated Deposit account||1,835.00||1,835.00||0.00||0.01% (base rate) + 0.1% (fidelity premium)|
|3||January 2019||Regulated high savings account||0 (-10,000.00)||0.00||0.00||0.05 % (base rate) + 0.80 % (fidelity premium)|
I have finally started on my real estate adventure thanks to the purchase of my first apartment. I already put down the first amount of 17,625 EUR which goes straight towards to proprety. As such I will count this as part of my net worth.
As I pay of my mortgage this amount will grow as per the payment plan. Of course I will seperate the interest due and the money that actually goes into the property aka the principal. The principal is what will get added to my net worth.
As you can see in the table below I actually already “earned” 500 EUR because the promotor gave 500 EUR if I signed an option contract of 24 hours.
|Nr.||Inception date||Description||Deposits||Current Value||% Gain|
|1||28 June 2019||Real estate property Brussels apartment||17,125.00||17,625.00||2,92|
Average Savings Rate Target
My SR over the last three months was not what you can consider stellar. It wasn’t horrible but definitly a far cry from my guestimated 75% average SR for 2019. After 9 months I have at XX,XX1%.
Thanks to the extra shares I got in the first half of this year I got XX.XX EUR in dividends. I’m now XX.XX% removed from my target which is 200 EUR by the end of 2019.