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Model Portfolio: 6 August 2009
Bull market lifts valuations for model portfolio................    
    

Date of Purchase

Issue

Nominal

Purchase Price

Current Price

Value  

Accrued

30 Jan 2007

Kingfisher 5.625% 15 Dec 2014

10,000

  95.24

 99

 9,900

 368

7 Mar 2007

Segro 5.5% 20 June 2018

5,000

  97.35

 85

 4,250

 39

18 April 2007

Merrill Lynch 5.125% 24 Sept 2010

10,000

  97.66

 101

10,100

 450

19 Aug 2007

Portman (Nationwide) 6.25% PIBS

 5,000

  97.50

 72

 3,600

 94

9th Jan 2008

Marks & Spencer 5.625% March 2014

10,000

  95.82

 102

 10,200

 215

10th April 2008

Bradford and Bingley 11.625 PIBS

10,000

 112.00

 10

 1,000

 /

20 Aug 2008

Next 5.25% Sept 2013

5,000

 86.5

 98

 4,950

 226

20 Oct 2008

GE Capital 4.75% 15 Jun 2011

5,000

 88.46

 102

 5,100

  96

27 Nov 2008

British Telecom 8.5% 2016

5,000

 97.5

 112

 5,600

 270

18 Feb 2009

Tesco 5.5% Dec 2019

5,000

 103.64

 104

 5,200

 181

26 Feb 2009

Roche 5.5% March 2015

10,000

 99.37

 107

 10,700

 241

26 March 2009

John Lewis 6.375 Jan 2012

5,000

 101.76

 106

 5,300  169
22 May 2009 UK Gilt War Loan 3.5% undated 7,000  73.6  75  5,250  44
15 June 2009 Anheuser Busch 6.5% June 2017 10,000  99.625 

 107

 10,700  87

        

Category Sum            Notes
Securities

£91,850

Valuation of current holdings
Accrued

£2,480

Interest accrual on above 
Cash

£10,115

Including interest & coupons received. 
     
Total

£104,445

 

This month has seen the recovery in corporate bonds continues, with many of our holdings pushing up over par and in several cases recovering pre-crash levels in terms of price.

In some cases (BT, Roche and Anheuser Busch), we are tempted to take profits. The price of these bonds has risen over par by some margin, and this is likely to dampen further upside progress.

The tail end of July also saw our holding Experian redeem (at par), giving us an extra £5,000 cash plus the coupon to play with. As usual, we will look to re-invest this into the market. Ideally we would like buy a new issue, so we will keep an eye open for these as and when the arrive. Another possibility is to look at some of the tempting yields available in the real estate sector (see last week’s Bond of the Week).