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Model Portfolio: 2 December 2009

A good year for bonds......................

    

As we roll into the year end, the Fixed Income Investor model portfolio shows a decent performance, with valuations to the end of November showing an all-in valuation of £108, 294. That compares well with the valuation of £92,432 seen in November 2008 and makes the total return for this period +17%. We will be calculating the figures to 2009 in next month’s Model Portfolio report.  

Last month saw us take an opportunistic profit in our GE holding. We sold £5,000 nominal of the short-dated GE 4.75% 2011 at a price of 102.75, reasoning that if held, we would experience the inevitable roll-down to par. The sale has increased our cash position, and with more coupon income coming in at Christmas, we will be in a position to buy 1-2 new holdings as we move into the new year. Alternatively, we may "top up" some of our £5,000 positions with the cash.

Should we see other profit taking opportunities (perhaps, the Roche, Anheuser or M&S bonds), we will consider taking out premium, perhaps re-investing into suitable new issues as and when they are seen.

Date of Purchase

Issue

Nominal

Purchase Price

Current Price

Value  

Accrued

30 Jan 2007

Kingfisher 5.625% 15 Dec 2014

10,000

  95.24

 102

 £10,200

 £550

7 Mar 2007

Segro 5.5% 20 June 2018

5,000

  97.35

 96

 £4,867

 £128

18 April 2007

Merrill Lynch 5.125% 24 Sept 2010

10,000

  97.66

 101.15

 £10,115

 £103

19 Aug 2007

Portman (Nationwide) 6.25% PIBS

 5,000

  97.50

 84

 £4,200

 £39

9th Jan 2008

Marks & Spencer 5.625% March 2014

10,000

  95.82

 103

 £10,300

 £397

10th April 2008

Bradford and Bingley 11.625 PIBS

10,000

 112.00

 10

 £1000

 /

20 Aug 2008

Next 5.25% Sept 2013

5,000

 86.5

 104

 £5,200

 £48

18 Feb 2009

Tesco 5.5% Dec 2019

5,000

 103.64

 104

 £5,200

 £270

26 Feb 2009

Roche 5.5% March 2015

10,000

 99.37

 106.5

 £10,650

 £418

26 March 2009

John Lewis 6.375 Jan 2012

5,000

 101.76

 105.5

 £5,265  £271
22 May 2009 UK Gilt War Loan 3.5% undated 7,000  73.6  76  £5,320  £1
15 June 2009 Anheuser Busch 6.5% June 2017 10,000  99.625   109  £10,900  £297
16 Aug 2009 RBS "Royal Bond 5.3% 2015 50  £100

 101

 £5,050  /
09 Aug 2009 Rabobank 4% Sept 2015 10,000  99.75

 101.5

 £10,150  £98

 

Category Sum            Notes
Securities

£98.417

Valuation of current holdings
Accrued

£2,620

Interest accrual on above 
Cash

£7,257

Including interest & coupons received. 
     
Total

£108,294