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Model Portfolio: 28 April 2011
Model Portfolio : 28 April 2011
A little late in the month, Aprilís valuation sees the Model Portfolio moved to a fully-invested stance, helped along by the recent flush of new bonds from Lloyds TSB, Provident Financial and Tesco Bank. The new issues have helped fill in the gap at the 5-year area for our ladder-structure and the portfolio now has decent range of maturities.
Portfolio values are now recorded within the charting system on the website and it is now possible to track the performance against the iBoxx total-return index, shown here as an overlay chart. It is interesting to note that whilst I did a fairly good job of avoiding the worse of the bear market, I was not quick enough to add "beta" on the recovery, and hence gave back most of the relative gains made in Q1 2009.
The lesson is; portfolio management is a bit like driving - break hard into the curve and then plenty of power on as you come out. I forgot the last bit.
It is not obvious what the next move will be. We have no new cash to invest as yet, although coupon income will gradually bring this in. Should some of the existing holding become expensive, I will look for a chance to take a profit in order to free up some cash for opportunities, however there is no candidates at present. I intend to be a fairly passive investor over the summer months.