Sleepy Portfolio

Sleepy Portfolio 3Q-2013 Update

October 2, 2013

26 comments

Background

I started the Sleepy Portfolio in 2005 to benchmark my personal portfolio, which at that time was mostly invested in individual stocks. The portfolio started off with an initial outlay of $100,000 but no new money has been added since. This is not simply a model portfolio; it reflects investment returns that can be obtained in the real world by accounting for costs such as spreads, trading commissions, MERs, foreign exchange conversion charges etc. For example, dividend payments on US-listed ETFs are assumed to incur a foreign exchange fee of roughly 2 percent when they are deposited into the account. Note, however, that the portfolio is assumed to be held in a registered account, so it does not take taxes into account.

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Sleepy Mini Portfolio Q3-2013 Update

September 11, 2013

8 comments

How time flies! It is exactly six years, since the Sleepy Mini Portfolio was launched to demonstrate how a super simple, regular investment program can slowly but surely build wealth over a period of time. All you need to implement such an investment program are (1) some initial effort in mapping out an asset allocation strategy (2) a calculator to divvy up your regular contributions and (3) discipline to stick to the strategy through all kinds of market conditions.

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Sleepy Mini Portfolio Q2-2013 Update

July 15, 2013

17 comments

Since my previous update, the Sleepy Mini Portfolio has gained 5.95 percent. The Sleepy Mini Portfolio was launched in August 2007 with an initial investment of $1,000 with a target allocation of 20% bonds, 20% Canadian stocks, 30% US stocks and 30% International stocks. The portfolio was designed to illustrate how a regular investment program can slowly build wealth over a life time of saving and investing. Another $1,000 was added to the portfolio every quarter since then for a total investment of $23,000 so far. Here’s how the portfolio looks as of July 15, 2013:

TDB909 – Canadian Bonds – $5,298 (18.2%)
TDB900 – Canadian Equities – $5,772 (19.8%)
TDB902 – US Equities – $9,342 (32.0%)
TDB911 – International Equities – $8,745 (30.0%)
Market value – $29,157
Total Invested – $23,000

I’m going to add another $1,000 to the portfolio and rebalance it to the original target allocation using this rebalancing spreadsheet. Here are the results:

Transactions

TDB909 – TD Canadian Bond Index (e-Series) – Buy units for $733.
TDB900 – TD Canadian Index (e-Series) – Buy units for $260.
TDB902 – TD US Index (e-Series) – Sell units for $295.
TDB911 – TD International Index (e-Series) – Buy units for $302

It is interesting to see how market leadership has shifted so much towards US stocks that we are now selling US stocks even when adding more money to the other asset classes. Here are two charts: the first shows the performance of the Sleepy Mini Portfolio performance over the past year and the second shows the performance of the Sleepy Mini Portfolio since inception.

sleepy_mini_portfolio_2Q_2013

Sleepy_mini_since_inception