It’s three months since the Sleepy Mini Portfolio was launched and it’s time to add another $1,000 to the portfolio. The portfolio’s initial asset allocation – Bonds 20%, Canadian Equities 20%, US Equities 30% and International Equities 30% – was invested in the TD Bank’s e-Series Index mutual funds. Over the past ninety days, the portfolio has declined by about 3%. Bonds and Canadian Equities were positive but the rapid appreciation of our dollar has dragged down the returns from U.S. and International Equities.
Bonds = $202.63
Canadian Stocks = $211.04
US Equities = $272.43
International Equities = $284.96
Total = $971.05
Since we are adding $1,000 to the portfolio, we have a total of $1,971.05 to work with. As per our original asset allocation, we need to end up with $394.21 in bonds and Canadian stocks and $591.32 in U.S. and International stocks. Subtracting the amounts already invested in these asset classes, we need to put $191.58 in bonds, $183.17 in Canadian equities, $318.89 in U.S. equities and $306.36 in International equities. If you notice, we are putting more money into the asset class that dropped the most (US equities) and less into the asset class that went up the most (Canadian equities).
Transactions:
TDB909 – TD Canadian Bond Index (e-Series) – Buy 18.21 units at $10.52.
TDB900 – TD Canadian Index (e-Series) – Buy 7.65 units at $23.95.
TDB902 – TD US Index (e-Series) – Buy 12.26 units at $26.02.
TDB911 – TD International Index (e-Series) – Buy 23.60 units at $12.98.
Who said investing needs to be complicated?
