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%.

Screen Shot 2015-10-31 at 11.21.27 PM

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Portfolio Update – Up 1.50% in October 2013

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

Ticker

Price (C$)

Price Change

Percentage

Industry

POW.TO $ 30.60

5.34%

6.3%

Finance, Specialty
FTT.TO $ 24.04

1.82%

0.0%

Industrial Services and Supplies
TCK-B.TO $ 27.90

0.79%

6.1%

Basic Materials
DII-B.TO $ 38.50

3.89%

6.4%

Consumer Cyclical
IFC.TO $ 65.00

5.33%

6.7%

Finance, Insurance
LB.TO $ 46.54

4.09%

6.7%

Finance, Diversified
BRK-B $ 120.11

2.65%

6.9%

Finance, Insurance
S&P Fund $ 157.31

6.13%

0.0%

US Equities
Bond Fund $ 223.14

1.04%

0.0%

Bonds
Money Market Fund $ 123.60 n/a

43.9%

Cash Equivalent
Cash

17.1%

Cash
Total

100.0%

Overall my portfolio is up 4.24% since last month. Excluding cash contributions the portfolio is up 1.50%.  For comparison my TI Index is up 3.41%, the DOW is up 2.75% and the TSX is up 4.49%.

My investments are up but they performed poorly against the TI Index, the TSX, and the DOW.

Winners this month include Power Corp (POW.TO) which is up 5.34%, Dorel (DII-B.TO) up 3.89%, Laurentian Bank (LB.TO) up 4.09%, my S&P fund up 6,13%, and Intact Insurance (IFC.TO) up 5.33%.

There were no losers.

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

Ticker Cost Basis 9/30/2013 Price Now Gain This Month Gain Total
TCK.B $27.03 $27.68 $27.90 0.79% 3.22%
POW.TO $26.20 $29.10 $30.72 5.57% 17.25%
IFC.TO $58.60 $61.78 $65.03 5.26% 10.97%
LB.TO $44.30 $44.74 $46.55 4.05% 5.08%
DII.B $41.01 $37.50 $38.74 3.31% -5.54%
BRK.B $112.48 $113.51 $115.09 1.39% 2.32%
FTT.TO $22.89 n/a $23.56 n/a 2.93%
XRX $8.90 n/a $9.80 n/a 10.11%
Average 3.39% 5.79%

In summary, my value stocks are up 5.79% since purchase, and up 3.39% this month.

I am in the process of moving my S&P fund and my Bond fund to my TD Direct account. In the interim those finds are parked in a money market fund.  I will restore my bond holdings once the transfer is complete.  I have 17.1% cash which I can use to add new positions if prices fall.

Screen Shot 2013-11-01 at 11.51.17 PM

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 – 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.

Screen Shot 2013-06-29 at 11.39.06 AM

Reducing Exposure to Canada

Screen Shot 2013-04-11 at 12.35.53 PMCanadian stocks have not fared well recently.  The TSX is down 2.5% in the last month.  US markets are doing much better by comparison.  I’m concerned about the Canadian banking sector.  Also, oil prices (especially oil sands prices) are under pressure.  I think it’s time to reduce my exposure to the TSX, and increase exposure to the roaring US market.

  • Sell XIU.TO @ $17.92
  • Buy XSP.TO @ $18.28

Portfolio Update – Up 0.77% in March 2013

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

Ticker Price (C$) Price Change Percentage Industry
T.TO $ 70.16 -1.03% 0.0% Telecommunications
STN.TO $ 44.75 n/a 1.8% Services
BEP-UN.TO $ 29.77 n/a 0.0% Energy
CSU.TO $ 124.88 n/a 1.9% Information Technology
WPK.TO $ 19.30 n/a 1.5% Consumer Goods
MHP $ 52.97 n/a 1.9% Services
YHOO $ 23.93 n/a 1.5% Information Technology
CGL.TO $ 14.22 n/a 5.0% Gold Fund
XEM.TO $ 24.47 -2.59% 9.5% Emerging Markets Fund
XIN.TO $ 19.41 1.84% 9.7% EAFE Fund
XDV.TO $ 22.30 -0.93% 10.5% Canadian Dividend Fund
XIU.TO $ 18.34 -1.45% 10.2% Canadian Equity Fund
S&P Fund $ 135.41 2.50% 21.2% US Equity Fund
Bond Fund $ 226.18 0.44% 24.6% Bond Fund
Cash 0.7% Cash
Total 100.0%

Overall my portfolio is up 0.77% since last month.  There were no cash contributions.  For comparison my TI Index is up 0.77%, the DOW is up 3.73% (the DOW and S&P500 are at all time highs this month) and the TSX is down 0.56%.

My investments have performed adequately against these indices. Winners this month include my S&P fund up 2.50% and my speculative stocks such as McGraw-Hill (MHP) up 10.25%, StanTec (STN.TO) up 4.89%, and Constellation Software (CSU.TO) up 4.24%*. The main loser was my Emerging Markets Fund (XEM.TO) down 2.59%.

My bond holdings are at 24.6%, which is a little lower than my target of 25%, but acceptable.  My speculative portfolio is 8.5% of overall assets, which is less than my 10% maximum, and acceptable.

Screen Shot 2013-03-31 at 11.46.02 AM

*Note: The gains in these speculative stocks are not shown in the table above because they were bought after the previous month-end.

Portfolio Update – Up 1.13% in February 2013

My portfolio balances at close of trading on 28th February were:

Ticker

Price (C$) Price Change Percentage

Industry

T.TO $ 70.89 5.19% 5.1% Telecommunications
COS.TO $ 21.11 0.57% 0.0% Energy
PHY-U.TO $ 13.76 -3.36% 0.0% Gold
POW.TO $ 27.56 5.07% 0.0% Financials
BMO.TO $ 64.21 1.94% 0.0% Financials
AAPL $ 454.58 0.03% 0.0% Information Technology
INTC $ 21.50 2.44% 0.0% Information Technology
IVV $ 157.05 4.62% 0.0% US Equity Fund
XEM.TO $ 25.12 n/a 9.8% Emerging Markets Fund
XIN.TO $ 19.06 n/a 9.6% EAFE Fund
XDV.TO $ 22.51 n/a 10.0% Canadian Dividend Fund
XIU.TO $ 18.61 1.64% 10.4% Canadian Equity Fund
S&P Fund $ 132.11 4.31% 20.9% US Equity Fund
EAFE Fund $ 100.11 1.91% 0.0% Global Equity Fund
Bond Fund $ 225.19 0.98% 24.7% Bond Fund
Cash 9.6% Cash
Total 100.0%

Overall my portfolio is up 2.43% since last month.  Excluding cash contributions my portfolio is up 1.13%.  For comparison my TI Index is up 0.45%, the DOW is up 1.40% and the TSX is up 1.08%.

My investments have performed well against these indices. Winners this month include Telus (T.TO) up 5.19%, S&P Fund (IVV) up 4.62%, and Power Corp (POW.TO) up 5.07%.  The only losers was gold down 3.36%.

My bond holdings are at 24.7%, which is a little lower than my target of 25%, but acceptable.

You can see from the “percentage” column in the table above that I have sold most of my individual stocks and my gold.  This is part of a broader portfolio rationalization process.  I expect to sell the final stock (Telus) and to buy back gold tomorrow.