How do I invest ? -- update --

Just a brief update on asset allocation. After the recent sharemarket dip, especially on the ASX relative to global shares, I decided to adjust my AA a little. No big changes. I have also been pouring some money into shares at these more attractive levels, so coming closer to target AA but still remain underinvested and have some way to go.

Updated target allocation is 65% growth / 35% defensive (instead of 70% growth / 30% defensive). I consider these +/- 5%, e.g. 60-70% growth and 30-40% defensive.  Current mix is 59% / 41%, so good progress on investing the lump sum and I can allow myself some small pleasure in the decision not to throw it all in the market back in April/May ! I plan to keep investing actively in the next month to get to the target 65% or very close at least.

The asset class split is as follows. The main change is the Aus/global share split now at 60/40%. I just see better value in the ASX, the yield is too enticing and with the AUD corrected down to a long-term fair value the upside for global shares is much less. Having tweaked a bit here and there, I intend to set this in stone now. The plan is to get portfolio in line with target allocations in the near term (next few months) and then stick to it as best as possible.

GROWTH

Australia shares (mainly ETF but also some direct blue chips) = 39%  [prev 38.5%]

Global shares = 26% (target around 3% of this AUD hedged)        [prev. 31.5%]

Commercial property = 0%

DEFENSIVE

Aus Fixed interest (including term deposits) = 8.7%     [prev 7.5%]

 Global FI = 0%

Cash (includes high interest saving accounts) =  26.3%   [prev 22.5%]