Both those indices include reinvested dividends and in the previous case tax credits too. The MSCI World Index covers all countries indexed by MSCI is expressed in US Dollars. The MSCI is considered by me to index the benchmark I measure my performance against. This post has a chart comparing my USD Total Asset Goes back to the MSCI World Index.
The first two columns of figures only cover non-retirement assets. I supply the comeback in Australian Dollar and US Dollar terms. The last-mentioned look a complete lot better due to the rise in the Australian money from 2001. The returns will be the total gain within the relevant period – not annualized rates of return.
The next two columns also include pension accounts. In the long-term these results are better with a 123% gain over ten years but are poorer for 2006 itself. Recently, my pension accounts have been spent more conservatively than non-retirement accounts. In earlier years this wasn’t the situation and I chose some very successful funds including Colonial First State’s Geared Share Fund.
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Columns 5 and 6 present the same data for both stock indices. Over 1, 2, 3, and 5 years the MSCI has outperformed the S&P 500. I’ve just about matched the S&P 500 over a decade and outperformed it on all the shorter horizons. I outperformed the MSCI over 3, 5, and a decade however, not over 1 or 2 2 years.
My 2005 rate of return was especially low. The final three columns supply the same information in conditions of annual rates of return. This demonstrates my rates of return have been strong over 3 and 5 years extremely. 12 months horizon The S&P 500 performed badly over the 5. The fall in America Dollar is one reason that both I and the MSCI outperformed the S&P 500 – foreign stock markets have also performed better in conditions of local currencies during this time period. So can be my results just good luck? I possibly could have moved all my non-retirement assets to the US in 2002, when I moved here from Australia. I decided never to do this deliberately.
I also thought we would invest the majority of my Australian pension account in Australian stocks rather than other alternatives. They were deliberate choices based on my view of the value of the currencies. I start to see the Euro now, Pound, and Aussie Dollar as fully valued and so will focus on accumulating US Dollars. Only time shall tell if I am right. Posted by mOOm at 11:55 pm No comments: Email ThisBlogThis! I sold all my shares in Telecom NZ.
I’ve possessed this stock since 2000 when they took over AAPT – an Australian Telecom start-up that I purchased at the IPO. I’ve bought in and out as time passes, so this last sale signed up a loss for tax purposes. The stock dropped sharply in mid-2006 after the New Zealand authorities tightened the regulatory regime to encourage more competition. The stock price has recovered since that time, but the high dividend yield has been cut and the company is attempting to gain traction force IMO.
Neither the company nor analysts are forecasting any income growth. The five experts who track the business each have a different opinion ranging from strong buy to strong sell! The bottom line was I asked myself if this investment will return more than the margin loan interest I am paying to maintain it and my answer was no. I keep very few specific stocks and shares of non-financial companies.