I’ve been tardy in keeping the Sleepy Portfolio in line with the target allocation (cash — 5%, bonds — 20%, stocks — 70% and REITs — 5%), failing to rebalance earlier in the year. As a result, the low-risk part of the portfolio had a higher allocation compared to target and the portfolio missed out on some of the strong rebound in the equity markets. Still, the portfolio is up 5.2% year-to-date and fixed-income and cash still make up 32.7%, compared to a target of 25%.

[Sleepy Portfolio at end of 2Q 2009]

Fortunately, I was paying more attention to our portfolios, rebalancing it regularly when adding new savings to our accounts. As a result, our portfolios performed much better and are up 16% YTD. I did get around the rebalancing the Sleepy Portfolio and will post an update next week.

[Sleepy Portfolio chart since inception to 2Q 2009]

This article has 5 comments

  1. CC,

    Why is the amount invested fluctuating between 95,000 and 100,000? I thought you were supposed to be adding $10K at the beginning of each january? Am I missing something?

    • Canadian Capitalist

      DGI: This update is on the original Sleepy Portfolio, which started out as an investment of $100K (Canadian) and I’ve been tracking since early 2005. A lot of readers requested that I track a smaller couch potato portfolio to which regular investments are made. I call it the Sleepy Mini Portfolio to which I add $1,000 every three months. Sorry for the confusion 🙂

  2. CC: This is still a little confusing.

    Since there are no additional inputs and I’m assuming no withdrawls, shouldn’t the redline (amount invested) remain flat at $100k?

    Are dividends/distributions considered either in the portfolio return or the amount invested lines? If so, are they held as cash, or reinvested?

    • Canadian Capitalist

      Sampson: I use Globefund.com to track the Sleepy Portfolio. When a dividend / interest payment is made, the redline drops (Globefund tracks the cash portion separately from the portfolio for some reason). When the cash is reinvested, the redline goes up. Since the portfolio is made of ETFs, the distributions are held in cash until reinvestment.

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