The Sleepy Mini Portfolio was launched in September 2007 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. I have personally implemented this portfolio for our kids’ RESPs (as have others) and if you want a more sophisticated portfolio you may to check out the Sleepy ETF Portfolio.

The portfolio kicked off with an initial infusion of $1,000 with a target allocation of 20% bonds, 20% Canadian stocks, 30% US stocks and 30% International stocks. Another $1,000 was added to the portfolio every quarter since then for a total investment of $25,000 so far. Here’s how the portfolio looks as of January 28, 2014:

TDB909 – Canadian Bonds – $6,548 (18.8%)
TDB900 – Canadian Equities – $6,790 (19.5%)
TDB902 – US Equities – $10,881 (31.2%)
TDB911 – International Equities – $10,663 (30.6%)
Market value – $34,883
Total Invested – $25,000

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 $628.
TDB900 – TD Canadian Index (e-Series) – Buy units for $386.
TDB902 – TD US Index (e-Series) – Sell units for $115.
TDB911 – TD International Index (e-Series) – Buy units for $101.

The following chart shows the performance of the Sleepy Mini Portfolio since inception.

sleepy_mini_portfolio_q4_2013

The portfolio has returned an annualized 9.8 percent since inception. A word of caution: long-term returns from this portfolio will likely be much more modest because we are coming off an year with strong returns.

This article has 6 comments

  1. Thanks for this update, I have had this portfolio for 3 years now and made use of your rebalancing spreadsheet quarterly. It’s my main approach to investing my RSP and really woke me up to savings, planning for retirement and pushed me to open a TD Direct account. I have since gained more knowledge and confidence and branched out to a few dividend stocks using a “core and explore” approach. Bottom line, your blog and posts and tools have elevated my financial literacy. Thank you so much!

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  4. Hey Ram,

    Just wanted to echo the comments above as well. A few years ago I didn’t even know what an e-series fund was. Your blog as been a fountain of information for me. I’m a simple guy. I’ve modelled my RRSP’s on this portfolio and I’ve mixed it up a bit by setting up several classic DRIP’s with transfer agents. All the best and look forward to reading your blog in the future.

    Joe

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