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Model Portfolio: 23 May 2011

Steady as she goes.........

    

The bond portfolio is now fully invested and holding a reasonably diversified range of assets across the maturity spectrum. As such, there is not much that needs to be done in terms of active management.

What the "next move" might be for the portfolio is not immediately apparent, although tempting new issues or oversold situations in individual credits or sectors might tempt me to liquidate some of the existing positions. The shorter higher-yielding holdings would be the likely candidates for any such switch trades - perhaps the M&S 5.625% 2014, the RBS 5.3% 2015 or the Lloyds 5.5% 2016.

Performance-wise, the combination of a strong underlying gilt market and the roll-up effect of coupons and accrued is keeping the portfolio on track. The chart, right, shows an overlay of the FII Model Portfolio against the IBOXX 5-10yr Gilt total return index.  

Date of Purchase

Issue

Life (yrs) 

Nominal

Purchase Price

Current Price

Value  

Accrued

9 Jan 2008

Marks & Spencer 5.625% March 2014

3

10,000

 95.82  106  10,600 96
16 Aug 2009 RBS "Royal Bond 5.3% 2015 4 100  100  104.3  10,430 /
24 March 2011 Provident Financial 7.5% 2016 5 6,000  100.15  105  6,300 68
22 March 2011 Lloyds 5.5% 2016 5 10,000  100.15  103  10,300 92

7 Mar 2007

Segro 5.5% 20 June 2018

7

5,000

  97.35

 102

 5,100

256

16 Aug 2010 Enterprise Inns 6.5% Dec 2018 7 6,000

  83.5

 90

 5,400

183

04 Jan 2011 National Grid 2.983% 2018 7 7,000  144.71  151  10,570

103

04 Feb 2010 GKN 6.75% 2019 8 10,000  97.56  108  10,800 390
28 July 2010 RBS Royal Bond  5.1% 2020 9 5,000  96.03  95.8  4,850 79
06 May/19 Nov 2010 Goldman Sachs 5.5% Oct 2021 10 10,000  87.9  95  9,600 340
04 Nov 2010 RBS Inflation-Linked (3.9% min) 2022  11 5,000 100  97.5  4,875 /
20 Sept 2010 Yorkshire Building Society 13.5% 2025 CoCo 14 5,000  116  118  6,000 101
08 Mar 2011 Italy 6% 2028 17 5,000  100.44  104  5,200 243
16 Sept/01 Dec 2010 Lloyds 6.5% Sept 2040 29 10,000  96.35  100  10,000 446
20 May 2010 Nat West 9% prefs (undated) U/D 5,000  1.03  106  5,300  /
08 March Nationwide 6.875% U/D 5,000    88  91  4,550 129
12 Dec 2010 Ecclesiastical 8.625% prefs U/D 5,000   1.02  111  5,550  /

 

Category Sum            Notes
Securities

125,425

Valuation of current holdings
Accrued

2,526

Interest accrual on above 
Cash

215

Including interest & coupons received. 
     
Total

128,166