Friday, 25 December 2015

Review of Portfolio Performance 2015

I finally got around to adding a link to my combined registered savings accounts to the blog.  I have some unregistered savings as well, spread between Shareowner and Interactive Brokers, but am not including these accounts in this analysis as the amounts are relatively small, &/or not really conducive to discussion in a blog on long term value oriented investing.  The Interactive Brokers account is my play account, and I mostly trade options in this account.

2015 was a strange/transitional year for me in terms of approach.  I began my journey into the world of attempting to understand more about value investing in the summer of 2014, and 2015 was a continuation of this process.  My expectation regarding 2016 is that I will continue on my path to developing a more robust framework for analyzing and evaluating businesses, while hoping to avoid dumb mistakes (which I am sure I will have my fair share of).  I have no expectations for the market, or for individual stocks, and I do not have any current stocks on watch for addition to my portfolios.  I will continue to scour the new 52 week lows for ideas, and for the index portion of the registered savings accounts, I will only add new units if the monthly price change is lower than the previous month's close.

From an investing standpoint, had the USD $ not appreciated the way it did vs. the CDN $, my overall performance likely would have been flat.  As it happened, the combined accounts returned around 2%, not including dividends and interest.  Including dividends and interest, the combined accounts likely returned 3%.

I go into 2016 with approximately $125.5K CDN in assets under management, allocated as follows:


  • $72K in GIC's and short term savings, or 57% of the combined accounts.  I expect to draw down on this portion of savings if I find new investment candidates in CDN $'s.  I'm pretty much locked out of buying additional USD $'s units as the price is prohibitively expensive, around 1.4x after factoring in brokerage spread on FX conversion.  The cash savings should produce around $886 in interest income for the year.
  • $26.4K in fixed income or equivalent, or 21% of the combined accounts.  I'm likely not going to add much more in terms of fixed income, except for the TD CDN Bond Index.  The fixed income component should produce around $665 in interest income for the year.
  • $2,790 in index funds, or 2.22% of the combined accounts.  As noted above, I will add new units if I get a lower monthly closing price vs. the previous month's close.  The index fund component should produce around $56 in dividends for the year.
  • $20.9K in equities and preferreds, or 17% of the combined accounts.  I'm really looking to add Canadian exposure to the equities portion of the accounts, but I'm not finding much in terms of new candidates in terms of compelling valuations.  The equities and preferreds component should produce around $450 in dividends for the year.
So, overall, my expected combined yield is around 1.6% as the holdings are currently structured.

Here's hoping 2016 is a productive and successful year.

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