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Model Portfolio: 23 June 2010
A few new additions to our model portfolio this month............. 
    

There is not a great deal to report over the six-week period since our last valuation. The position in War Loan has been liquidated and we have bought some new holdings in Natwest 9% preference shares and the new Lloyds TSB 5.375% 2015 bond. 

Valuation-wise, the portfolio has ticked up a little, perhaps dragged higher by the firm gilt market. However, corporates are softer on balance in spread terms and there are some decent bargain to be had out there. Yields of 5% or so are available in decent senior credits and a fair bit more can be had in some of the subordinated or higher risk credits.

We have more work to do over the next few weeks. The portfolio’s holding in the Roche 5.5% March 2015 (see chart, right) and the Rabobank 4% 2015 have tightened in a fair way and now yield just over 3%. The plan is to switch into something with a 5% handle to keep our money working hard.

One unexpected boost to the P&L has been from the continuing recovery of the non-paying B&B PIBS. We hold for further appreciation.

 

 

 

Date of Purchase

Issue

Nominal

Purchase Price

Current Price

Value  

Accrued

30 Jan 2007

Kingfisher 5.625% 15 Dec 2014

10,000

  95.24

 105

 10,500

 300

7 Mar 2007

Segro 5.5% 20 June 2018

5,000

  97.35

 100.5

 5,025

 6

18 April 2007

Merrill Lynch 5.125% 24 Sept 2010

10,000

  97.66

 100.5

 10,050

 388

9th Jan 2008

Marks & Spencer 5.625% March 2014

10,000

  95.82

 103.5

 10,350

 147

10th April 2008

Bradford and Bingley 11.625 PIBS

10,000

 112.00

 25

 2,500

 /

20 Aug 2008

Next 5.25% Sept 2013

5,000

 86.5

 104.2

 5,210

 194

18 Feb 2009

Tesco 5.5% Dec 2019

5,000

 103.64

 107

 5,350

 148

26 Feb 2009

Roche 5.5% March 2015

10,000

 99.37

 109

 10,900

 174

09 Aug 2009 Rabobank 4% Sept 2015 10,000  99.75  103.25  10,325  318
16 Aug 2009 RBS "Royal Bond 5.3% 2015 100  £100

 104.28

 10,428  /
04 Feb 2010 GKN 6.75% 2019 10,000  97.56  100.2  10,020  450
06 May 2010 Goldman Sachs 5.5% Oct 2021 6,000  87.5  86  5,160  234
20 May 2010 Nat West 9% prefs (undated) 5,000  1.03  1.02  5,100  /
21 June 2010 Lloyds 5.375 Sept 2015 5,000  100.9 100.5  5,025  0

            

Category Sum            Notes
Securities

£105,943

Valuation of current holdings
Accrued

£2,359

Interest accrual on above 
Cash

£5,499

Including interest & coupons received. 
     
Total

£113,801