The Sleepy Portfolio posted gains of 2.2% and 4.4% during the past quarter and year-to-date respectively. It is surprising to see positive gains with the recent volatility in the markets but only bonds and REITs ended up in the negative column.
![[Table showing Sleepy Portfolio value at the end of 2Q-2007]](http://www.canadiancapitalist.com/images/2007/2q2007.JPG)
Over the past quarter, I made good progress in cleaning up our portfolios. Just over 50% of the total portfolio is now in index funds. I also initiated a transfer of our discount brokerage accounts from RBC Direct Investing to TD Waterhouse, so that I could sell all our US stock holdings and buy index funds with the proceeds.
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12 responses so far ↓
1 Phil S // Jul 3, 2007 at 8:37 am
In a rising interest rate environment, that’s not too surprising. Actually, the BoC rates haven’t “actually” risen yet, it’s still only the threat of rising interest rates that have knocked the stuffing out of bonds and REITs. Still, the retail investor (ie. me) can right now only get just above 5% on a government long bond (10+ yrs), so I’m definitely not ready to dive in yet. I’ll continue to stay on the short end (T-Bills) of the yield curve for a while longer. I don’t know if the long rates will ever get back to the historical average of around 8%, but one can dream! =0)
2 FourPillars // Jul 3, 2007 at 9:59 pm
I think that’s roughly what our portfolio got. However I couldn’t be bothered to check
Mike
3 P Day // Jul 3, 2007 at 10:03 pm
The sleepy portfolio, is it a portfolio of tax sheltered funds or funds outside of your rrsp. Would it be wise to make up an index porfolio of rrsp and non rrsp funds and treat it as a single family portfolio for husband and wife? I guess mainly re tax implications!
4 Canadian Money Blogs Reviewer // Jul 4, 2007 at 12:03 am
I’m all for indexing myself … that said my best performer is Advantage Energy Income Fund (+32% YTD). I’m having a hard going 100% index because of picks like that. I do have some losers like Mullen Group Income Fund (-6.7% YTD).
I’m trying hard to reign in my stock trading though
5 Short-Term versus Long-Term Bonds // Jul 4, 2007 at 7:24 am
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6 Canadian Capitalist // Jul 4, 2007 at 7:30 am
P Day: I’ve assumed that the Sleepy Portfolio is tax sheltered. You’re right in treating all your accounts (taxable and non-taxable) as a single portfolio. It would allow your portfolio to be tax efficient: you could put bonds and foreign equities inside your RRSP and hold Canadian stocks in your taxable portfolio.
CMBR: I’m not going the 100% index route either. I am planning to capture Canadian equities exposure using my own stock picks (20% of portfolio). Indexing doesn’t have to be an all-or-nothing proposition.
7 David // Jul 4, 2007 at 10:52 am
I’m following this topic with interest. My pool of RBC Mutual funds has returned 6.09% YTD, so I’m not sold on index funds. I’ve also been looking a a number of Value Investors returns as well including Francis Chou, Cardinal Investing and Phillips, Hager & North.
8 Canadian Money Blogs Reviewer // Jul 4, 2007 at 1:34 pm
David, good point … the results for my only two funds: CHOU RRSP is up 4.6% YTD and my Mackenzie Cundill Recovery ‘C’ (International, deep value) is up 26% YTD.
9 Canadian Capitalist // Jul 4, 2007 at 3:18 pm
David, CMBR: Mutual funds can and will outperform index funds over the short term. In fact, some mutual funds will even outperform index funds over a period of 10+ years. The problem is finding out which funds will outperform in advance. It could well be that RBC, Chou and Mackenzie funds will continue their out performance but history suggests that odds are not in the favor of actively managed funds.
10 Canadian Money Blogs Reviewer // Jul 4, 2007 at 11:06 pm
CC: I completely agree … that said, I’ve always based my mutual funds choices mostly on the MoneySense recommendations .. so far so good
I keep increasing the proportion of ETFs though.
11 P Day // Jul 5, 2007 at 12:57 am
C.C. Thanks, we have 30% in xbb inside my wifes rsp. the last month was not great, and I am questioning if xbb is the correct bond choice.
12 Canadian Capitalist // Jul 5, 2007 at 7:16 am
P Day: In our personal portfolios, I have replaced XBB with the short-term bond fund XSB. I have many posts covering this topic, you may to search for “XSB” on the website.
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