Portfolio Update – Up 4.46% in October 2015

My portfolio balances at close of trading on 31st October were:

Ticker

Price (C$)

Price Change

Percentage

XSP $‎ 24.02

8.10%

36.3%

XIU $‎ 20.00

1.42%

23.8%

XEM $‎ 25.77

4.25%

0.0%

XIN $‎ 23.37

6.71%

10.2%

ZQQ $‎ 35.95 n/a

9.1%

XBB $‎ 31.32

-0.60%

19.4%

Cash

1.1%

Total

100.0%

Overall my portfolio is up 4.46% since last month. There were no cash contributions. For comparison my TI Index is up 3.75%, the DOW is up 8.47% and the TSX is up 1.67%. My investments are up and performed moderately against the indexes.

Winners this month are all of the equities funds and especially the S&P 500 fund (XSP.TO).

The only loser was my Bond Fund (XBB.TO) down 0.60%.

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Portfolio Update – Down 2.25% in September 2015

My portfolio balances at close of trading on 30th September were:

Ticker

Price (C$)

Price Change

Percentage

XSP $‎ 22.22

-2.59%

35.1%

XIU $‎ 19.72

-3.85%

24.5%

XEM $‎ 24.72

-1.51%

8.8%

XIN $‎ 21.90

-4.16%

10.0%

XBB $‎ 31.51

-0.28%

20.4%

Cash

1.2%

Total

100.0%

Overall my portfolio is down 2.25% since last month. There were no cash contributions. For comparison my TI Index is down 2.69%, the DOW is down 1.47% and the TSX is down 3.98%. My investments are down and performed moderately against the indexes.

There were no winners this month.

Losers were all of the equities ETFs. Bonds lost value but less than 1%.

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Portfolio Update – Down 5.16% in August 2015

My portfolio balances at close of trading on 31st August were:

Ticker

Price (C$)

Price Change

Percentage

XSP $‎ 22.81

-6.21%

35.2%

XIU $‎ 20.51

-4.60%

24.9%

XEM $‎ 25.10

-8.36%

8.7%

XIN $‎ 22.85

-8.05%

10.2%

XBB $‎ 31.60

-1.31%

20.0%

Cash

0.9%

Total

100.0%

Overall my portfolio is down 5.16% since last month. There were no cash contributions. For comparison my TI Index is down 3.90%, the DOW is down 6.57% and the TSX is down 4.21%. My investments are down and performed moderately against the indexes.

There were no winners this month.

Losers were all of the equities ETFs. Bonds lost value but less than 2%.

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Reducing Bond Exposure

Screen Shot 2013-08-21 at 10.58.09 PMBond performance has significantly lagged behind North American equities over the last 12 months.  Bonds are down 5% in the past 12 months, while the S&P500 is up 25%.  This is a 30% divergence.

I believe that my bond investments might represent dead money.  Accordingly, I am selling my bonds and moving those funds to my S&P fund.

  • Buy S&P Fund @ $150.6674
  • Sell Bond Fund @ $220.0189

This is a deviation from my Asset Allocation policy and my core Investment Policy.  It’s worth noting that I failed the last time I tried actively manage my equity to bond ratio, back in the Summer of 2011.  I wonder if I will learn the same painful lesson again!

POSTMORTEM

A month after making this trade it seems to be a bad call.  The S&P Fund that I bought is down 1.75% while the Bond Fund that I sold is down only 0.56%.  That’s a loss of 1.19% on the trade.  Given that the bond component of my portfolio had previously been 32.8%, this loss equates to 0.39% of my entire portfolio.  Another expensive lesson.  I will rebalance my portfolio back to include my customary bond component.

01-Aug-13 03-Sep-13 Change
S&P Fund $150.67 $148.04 -1.75%
Bond Fund $220.02 $218.78 -0.56%

Portfolio Update – Up 2.23% in July 2013

My portfolio balances at close of trading on 31st July were:

Ticker Price (C$) Price Change Percentage Industry
POW.TO $ 29.53 4.64% 6.9% Finance, Specialty
FTT.TO $ 22.10 2.08% 6.6% Industrial Services and Supplies
TCK-B.TO $ 24.06 7.08% 6.6% Basic Materials
DII-B.TO $ 37.59 2.43% 6.4% Consumer Cyclical
IFC.TO $ 60.41 1.96% 7.0% Finance, Insurance
LB.TO $ 45.05 2.53% 6.8% Finance, Diversified
XRX $ 9.97 4.49% 0.0% Technology
S&P Fund $ 148.10 2.40% 13.4% US Equities
Bond Fund $ 221.09 0.17% 32.8% Bonds
Cash 13.4% Cash
Total 100.0%

Overall my portfolio is up 2.23% since last month.  There were no cash contributions. For comparison my TI Index is up 3.33%, the DOW is up 3.96% and the TSX is up 2.95%.

Although my investments are up modestly, they performed poorly against the TI Index, DOW and TSX, which are all up markedly.

Winners this month include Xerox (XRX) which is up 4.49% (and which I sold during the month at an even higher price), Power Corp (POW.TO) up 4.64%, and Teck Resources (TCK-B.TO) up 7.08%.

There are no real losers.  Bonds are flat.

Let’s take a look at my value stock portfolio.

Ticker Cost Basis 6/28/2013 Price Now Gain This Month Gain – Total
TCK.B $27.03 $22.47 $24.06 7.08% -10.99%
POW.TO $26.20 $28.22 $29.53 4.64% 12.71%
IFC.TO $58.60 $59.25 $60.41 1.96% 3.09%
LB.TO $44.30 $43.94 $45.05 2.53% 1.69%
FTT.TO $22.89 $21.65 $22.10 2.08% -3.45%
XRX $8.90 $9.07 $9.80 8.05% 10.11%
DII.B $41.01 $36.70 $37.59 2.43% -8.34%
Average 4.11% 0.69%

In summary, my value stocks are up 0.69% since purchase, and up 4.11% this month. This montly gain is greater than the TSX and the DOW, which is pleasing.

My bond holdings are at 32.8%, which is close to my target of 33.5% so no rebalancing is required.  I have 13.4% cash which I can use to add new positions if prices fall.

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Portfolio Update – Down 2.80% in June 2013

My portfolio balances at close of trading on 30th June were:

Ticker Price (C$) Price Change Percentage Industry
POW.TO $ 28.22 -3.02% 6.8% Finance, Specialty
FTT.TO $ 21.65 -4.46% 6.6% Industrial Services and Supplies
TCK-B.TO $ 22.47 -18.85% 6.8% Basic Materials
DII-B.TO $ 36.70 -11.03% 7.0% Consumer Cyclical
IFC.TO $ 59.25 -3.42% 7.0% Finance, Insurance
LB.TO $ 43.94 -0.48% 6.8% Finance, Diversified
XRX $ 9.54 4.68% 7.4% Technology
S&P Fund $ 144.63 0.69% 13.4% US Equities
Bond Fund $ 220.71 -2.06% 33.5% Bonds
Cash 4.8% Cash
Total 100.0%

Overall my portfolio is down 2.80% since last month. There were no cash contributions. For comparison my TI Index is down 3.63%, the DOW is down 1.36% and the TSX is down 4.12%.

My investments have performed well against the TI Index, which was dragged down by gold and prices, and the TSX, which was dragged down by commodity price sensitive stocks (e.g., miners). It did not perform as well against the DOW.

Winners this month include Xerox (XRX) which is up 4.68% (partially due to a strengthening US dollar) and my S&P fund (again due to strong US Dollar).

Losers are manifold and include Teck Resources (TCK-B.TO) which is down 18.85%, Dorel (DII-B.TO) down 11.03% on poor bicycle sales, Finning (FTT.TO) down 4.46%, Power Corp (POW.TO) down 3.02%, and Intact Financial (IFC.TO) down 3.42%.  Also, Bonds are down 2.06% on fears that the US will reduce fiscal stimulus (i.e., bond buying).

Let’s take a look at my value stock portfolio.

Ticker Cost Basis 5/31/2013 Price Now Gain This Month Gain – Total
TCK.B $27.03 $27.69 $22.47 -18.85% -16.87%
POW.TO $26.20 $29.10 $28.22 -3.02% 7.71%
IFC.TO $58.60 $61.35 $59.25 -3.42% 1.11%
LB.TO $44.30 $44.15 $43.94 -0.48% -0.81%
FTT.TO $22.89 $22.66 $21.65 -4.46% -5.42%
XRX $8.90 $8.79 $9.07 3.19% 1.91%
DII.B $41.01 $41.25 $36.70 -11.03% -10.51%
Average -5.44% -3.27%

In summary, my value stocks have lost 3.27% since purchase, and lost 5.44% this month.  This monthly loss is greater than the 4.12% that the TSX lost, which is worrying.  However, I am a patient investor and this is a good time to add to my positions (using some of my remaining cash).

My bond holdings are at 33.5%, which is right on my target of 33.5%. I have 4.8% cash which I can use to add another new position if prices fall.

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Portfolio Update – Up 1.00% in May 2013

My portfolio balances at close of trading on 31st May were:

Ticker Price (C$) Price Change Percentage Industry
POW.TO $ 29.10 7.26% 6.8% Finance, Specialty
FTT.TO $ 22.66 n/a 6.7% Industrial Services and Supplies
TCK-B.TO $ 27.69 3.32% 6.5% Basic Materials
DII-B.TO $ 41.25 n/a 6.4% Consumer Cyclical
IFC.TO $ 61.35 n/a 7.1% Finance, Insurance
LB.TO $ 44.15 n/a 6.6% Finance, Diversified
XRX $ 9.11 n/a 6.9% Technology
S&P Fund $ 143.64 5.14% 12.9% US Equities
Bond Fund $ 225.35 -1.48% 33.3% Bonds
Cash 6.9% Cash
Total 100.0%

Overall my portfolio is up 1.00% since last month.  There were no cash contributions.  For comparison my TI Index is up 0.48%, the DOW is up 1.86% and the TSX is up 1.56%.

My investments have performed well against the TI Index, which was dragged down by gold and bond prices, but not so well against the pure equities indexes: the TSX and Dow. This is to be expected: it was a good month for equities but not for bonds.

The two value stocks that I bought last month did very well: Teck Resources (TCK-B.TO) is up 7.26% and Power Corp (POW.TO) is up 3.32%.  My S&P Fund is up 5.14%.  My bonds are down 1.48%.

The table above does not show the performance of stocks that were bought during the month (it only shows month-on-month performance).  I bought quite a few stocks this month so I am including an additional table to analyze their performance, as follows.

Ticker Cost basis Price today Gain (Loss)
TCK.B $27.03 $27.69 2.44%
POW.TO $26.20 $29.10 11.07%
IFC.TO $58.60 $61.35 4.69%
LB.TO $44.30 $44.15 -0.34%
FTT.TO $22.89 $22.66 -1.00%
XRX $8.90 $8.79 -1.24%
DII.B $41.01 $41.25 0.59%
Average 2.32%

In summary, my value stocks have gained 2.32% since buying them.  Performance would have been much better were it not for a sudden downturn in the two hours of trading today, during which the TSX fell 0.5% and the Dow fell 1%.  I bought Xerox (XRX) and Laurential Bank (LB.TO) today, and both are down materially!

My bond holdings are at 33.3%, which is very close to my target of 33.5%.  I have 6.9% cash which I can use to add another new position if prices fall.

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