Since our last update, the Sleepy Mini Portfolio, a simple, passive portfolio constructed with low-cost index mutual funds, has made modest gains. As of November 30, 2009, the portfolio has a 2.8% gain over book value:

TDB909 – Canadian Bonds – $1,829.71 (19.8%)
TDB900 – Canadian Equities – $1,904.05 (20.6%)
TDB902 – US Equities – $2,796.20 (30.2%)
TDB911 – International Equities – $2,720.25 (29.4%)
Total – $9,250
Total Invested – $9,000

The Sleepy Mini Portfolio demonstrates the power of sticking to an investing strategy even when markets are crashing around us. And even though the markets have made a tremendous recovery, we should continue to stick to the investing program. In that spirit, we’ll once again add another $1,000 to the portfolio and rebalance it back to the target asset allocation — 20% bonds, 20% Canadian stocks, 30% US stocks and 30% International stocks. The rebalancing spreadsheet shows how to carve up the new money between the four TD e-Series funds.

Transactions:
TDB909 – TD Canadian Bond Index (e-Series) – Buy units for $220.33
TDB900 – TD Canadian Index (e-Series) – Buy units for $145.99.
TDB902 – TD US Index (e-Series) – Buy units for $278.86.
TDB911 – TD International Index (e-Series) – Buy units for $354.81.

Investing that does not fear the few basis points lost to the Harmonized Sales Tax!

Sleepy Mini Portfolio Q4 2009 Update

This article has 9 comments

  1. Serious question:

    What is the ‘book value’ to which you refer?

    Is it your original cost?

  2. Started near the peak, survived the worst crash in a generation (or two), and is still in the black. And it’s simple. What more do you want, people?

    Mark – CC appears to be using original cost. (9250-9000)/9000 = ~2.8%

  3. Canadian Capitalist

    @Mark: Yes, book value refers to actual money invested. Of course, over the long-term what counts is real, inflation-adjusted returns, not simply profits over book value.

  4. So when you rebalance do you have to pay the purchase fee *4? Not sure what kind of fee’s you pay to purchase your funds, or if you do? If you do, doesn’t that hurt when only purchasing around $250 for each fund?

    • Canadian Capitalist

      @Adam: This portfolio is implemented using TD e-Series Index Mutual Funds. The only requirement is a minimum purchase amount of $100 per fund. There are no fees to buy or sell.

  5. Yay, the value is back up over the amount invested! And I bet you’ll come out even further ahead due to the increased number of shares the same amount would buy when the markets were lower! 😀

    (I also just noticed the different look around here!)

  6. I’d be interested in your average return rate on your investment (IRR).

  7. I’ve just transferred out my wife’s RRSP portfolio in cash to an online discount brokerage. I am looking for a long-term portfolio for novice investor like myself and I came across your post. My question for you is: Since now I have cash ($100k) in the account, should I dollar-cost average? Let’s say buy $10k every 2-weeks. Assuming I hit the $9.95 max. commission per trade, every 2-week I’ll have to pay ~$40 in commission. The total cost of investing this $100k would be ~$400 (0.4%). Is it worthwhile? Or should I just invest the whole thing in one shot and pay $40 commission, or anything in between?