International investments need to be regularly reviewed. Last weekend we finished the international investing portion of our International Investments and Business Made EZ. During that session I shared Merri’s and my personal portfolio update.
International investments take many forms. To help everyone see what can be done we periodically look at our investment portfolio. We do not suggest that this should be your portfolio. We only hope that sharing why and how we make changes can help you direct your financial planner and affairs.
We have made numerous changes in our international investments since our last review.
We sold all our Naples, Florida real estate (just before the crash).
We sold our gold and silver holdings.
We swapped all our Jyske Invest Equity Funds into Jyske Invest Bond Funds.
The equity funds we took profits on were:
| Jyske Invest Latin America Fund |
USD
|
| Jyske Invest Eastern Europe Fund |
EUR
|
| Jyske Invest German Equity Fund |
EUR
|
| Jyske Invest Japanese Stocks | |
| Jyske Invest CHINA | |
| Jyske Invest INDIA | |
| Jyske Invest FAR EAST | |
| Jyske Invest Favorite Stocks | |
| Jyske Invest Market Neutral Fund | |
| Jyske Invest Turkey Equity Fund |
Here is our March 2007 international investments portfolio breakdown.
| CASH | ||
| Flex account 4.625% |
US$
|
16%
|
| Current acct. 4.125% |
Brit Pounds
|
5%
|
| Hungarian Other Curr. |
1%
|
|
| TOTAL CASH |
22%
|
|
| EQUITIES | ||
| Bank of Florida Shares |
US$
|
1.8%
|
| Jyske Bank Stocks |
DKK
|
2.2%
|
| TOTAL SHARES |
4%
|
|
| BONDS | ||
| Danish Bond Fund |
DKK
|
6%
|
| Swedish Bond Fund |
SEK
|
2%
|
| Spintab SWE |
SEK 5.000% 18.06.2008
|
1%
|
| Volkswagen Intl. Finance |
NOK 5.000% 10.11.2008
|
1%
|
| Rabobank NL |
CAD 4.250% 05.01.2009
|
1%
|
| Landwirt. Rentenbank |
AUD 5.500% 16.04.2007
|
1%
|
| Westpac Trust NZ |
NZD 6.000% 05.03.2007
|
1%
|
| Swedish Export Credit |
NZD 6.250% 19.12.2007
|
3%
|
| NRW Bank |
NZD 6.500% 26.08.2008
|
1%
|
| Nederl. Gemeenten |
USD 5.000% 22.03.2007
|
1%
|
| Deutsche Telekom |
USD 3.875% 22.07.2008
|
1%
|
| Ford Credit Canada |
GBP 7.250% 07.12.2007
|
2%
|
| Scandinavian Airlines |
EUR 6.000% 20.06.2008
|
1%
|
| Dresdner Bank Bonds |
EUR 4.000% 19.01.2007
|
4%
|
| European Investment BK |
TRY 10.00% 28.01.2011
|
1%
|
| Brazil |
BRL 12.500% 05.01.2011
|
1%
|
| Hungary Governm. |
HUF 6.250% 12.06.2007
|
1%
|
| Hungary Governm. |
HUF 6.750% 12.02.2013
|
1%
|
| TOTAL BONDS |
30%
|
|
| OTHER LOANS |
US$ & Brit Pounds
|
3%
|
| LOANS | ||
| Invest Loan |
CZK 4.250%
|
-2.5%
|
| Invest Loan |
CHF 3.625%
|
-2.5%
|
| TOTAL LOANS |
-5%
|
|
| PROPERTY | ||
| Farm Land |
18%
|
|
| Commercial Property |
11%
|
|
| Ecuador Property |
17%
|
|
| TOTAL PROPERTY |
46%
|
|
|
June 2006
|
Oct 2006
|
March 2007
|
|
| Current and CDS |
15%
|
12%
|
22%
|
| Stocks |
9%
|
18%
|
4%
|
| Bonds |
33%
|
31%
|
33%
|
| Metals |
4%
|
3%
|
0
|
| Real estate |
45%
|
45%
|
46%
|
| Loan |
-12%
|
-10%
|
-5%
|
| Breakdown by Currency |
Oct 2006
|
March 2007
|
| US$ |
49%
|
68%
|
| Brit Pd. |
10%
|
8%
|
| Emerging |
12%
|
5%
|
| Euro |
9%
|
5%
|
| Danish kroner |
7%
|
8%
|
| NZ$ |
4%
|
5%
|
| Norway kroner |
3%
|
1%
|
| Aust. $ |
2%
|
1%
|
| Japan yen |
2%
|
0
|
| Swede kroner |
1%
|
3%
|
| Canada $ |
1%
|
1%
|
| Swiss franc |
-5%
|
-2.5%
|
| Czech Koruna |
-5%
|
-2.5%
|
Some of the changes are not what they appear to be.
For example, there is a large increase in the content of the US dollar position. This is in part because profits made in foreign currency equities have been invested in Ecuador real estate. Property holdings are all shown in US dollars, so the 68% property really represents only a 21% position in dollars. This is not because I feel the dollar is stronger but currently am holding dollars ready to buy more Ecuador property.
The loan position has not been partially paid off. We simply had some nice profits that increased the portfolio size in relation to the loans.
The emerging portion of the portfolio seems reduced but this is because profits from emerging equities is not being invested in Ecuador real estate.
The gold and silver have been sold. Normally these were held as inflation hedges but the increased property holdings fill this role.
The higher cash liquidity is also held in reserve for property purchases.
Until next message, good international investments to you!
Gary
Join us for our updated May 25 – 27, 2007 International Business and Investing Course in North Carolina. Thomas Fischer joins me to update global economics there. We will update our International investment portfolio there.
