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moneysense.ca, 2/09/08
Sleepy Mini Portfolio Q3-2008 Update
The Sleepy Mini Portfolio lost ground, falling 4.3% since our last update in May. The current portfolio holdings are:
TDB909 – Canadian Bonds – $819 (21.2%)
TDB900 – Canadian Equities – $760 (19.7%)
TDB902 – US Equities – $1,187 (30.8%)
TDB911 – International Equities – $1,094(28.3%)
Total – $3,859
It is exactly one year since the Sleepy Mini Portfolio was launched and despite the market turmoil of the past year, the portfolio is down just 3.5% showing the value of both a diversified portfolio and regular additions to it. As per plan, we’ll add another $1,000 to the Sleepy Mini portfolio and rebalance it back to the initial target allocation – Bonds 20%, Canadian Equities 20%, US Equities 30% and International Equities 30%. Using the simple rebalancing spreadsheet, we can easily figure out the transactions we need to make:
Transactions:
TDB909 – TD Canadian Bond Index (e-Series) – Buy units for $153.01.
TDB900 – TD Canadian Index (e-Series) – Buy units for $212.07.
TDB902 – TD US Index (e-Series) – Buy units for $270.88.
TDB911 – TD International Index (e-Series) – Buy units for $364.03.
Investing so easy, you don’t really have to be a pro like Avner Mandelman!
moneysense.ca, 2/09/08
CC,
Does your -3.5% return include your additional investments through the year? I would not consider the growth of a portfolio to include the contributions to it, as the portfolio is no longer comparable to any benchmark. For instance, if I added $25,000 to a 50,000 portfolio mean I had a 50% return?
DAvid
DAvid: No, of course, not
4 investments of $1,000 had been made every three months to the Sleepy Mini Portfolio over the past year and the market value before the latest addition was $3,859 for a 3.5% loss. Actually, my first sentence isn’t accurate. During the last update, the portfolio was up 1.1% since inception but is now down 3.5%. So, the loss over the past 3 months is more than 3.5%. I’ll correct the error.
CC:
I plan on adopting this portfolio for a new RRSP I will be opening thanks to my severance, so it should be interesting.
C8j
CC – any chance you would back date the same data to buy a similar portfolio of actively managed funds and compare the performance as you go? Sort of an actively managed benchmark? Could be interesting?
Rob: I would be open to tracking a portfolio of actively managed funds but the problem is selection: who picks the funds to represent various asset classes? Also, it is important to reflect turnover with pre-tax and after-tax returns if funds are replaced in the future.
[...] had actually asked to ensure I had access to the E-Funds (that the Canadian Capitalist uses in his Sleepy Portfolio) that are ONLY available through the web, yet no sign of the account, on the Web [...]
You could pick the actively managed funds based on what you’d personally pick if you HAD to choose active management. Just a thought. I also agree on the tax calculation requirement (for non-sheltered plans only of course).
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