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Model Portfolio: 7 January 2013

We take profits and keep our powder dry for 2013...

    

We have made a few changes to the model portfolio since the last update.  

Mainly profit taking to free up funds for new issues in 2013. Following these exits we sit with around £57k cash in the armoury (38.5% of total) and the total portfolio value rises from £146.9K to £150,413.

We have taken profits in:

We covered our potential exit of the Lloyds 6.5% 2040 in our bond of the week and also keep a keen eye on Provident Financial 7.5% 2016 where we look for an exit (see analysis here).

Some big movers have been Enterprise Inns 6.5% 2018 which trades up around the 98 level after rising from 2012 lows at 72.  This was covered on the Bond Blog and also Bond of the Week.

Second largest riser is National Grid 1.25% 2012 with an increase of just under 5% and Yorkshire Building Society 13.5% 2025 rising just over 3%.

Note: The portfolio is operated on a "real money" basis with an initial deposit of £100,000 and traded through our live bond account. This is to accurately reflect the performance and holds a mixture of credits and bond types, from the AA-rated Places for People bond, down to more speculative holdings such as the BB- rated Enterprise Inns bond. The Portfolio also has a small proportion of its holdings in fixed income preference shares and "bond-like" instruments. Fixed Income ETFs may be added from time to time.

Purchase Date Issue Life (yrs)  Nominal Purchase Price Current Price
24-Mar-11 Provident Financial 7.5% 2016 4 6,000 100.15 106.65
16-Aug-10 Enterprise Inns 6.5% Dec 2018 6 6,000 83.5 98.084
31-Jul-12 ICAP 5.5% July 2018 6 5,000 100 103.48
03-Sep-12 CLS HLDGS 5.5% BDS 2019 7 12,000 101.3 98.85
10-Oct-12 Workspace 6% Sept 2019 7 5,000 100 101.95
16-May-12 Tesco Bank 5% 2020 8 5,000 100 106.7
20-Sep-12 ICG 6.25 Sept 2020 8 12,000 100 102.45
13-Oct-11 National Grid PLC 1.25 2021 9 10,000 100 107.62
31-Jan-10 Places for People 1% RPI 2022 10 6,000 100 102.6
20-Sep-10 YBS 13.5% 2025 CoCo 13 5,000 116 137.77
08-Mar-11 Italy 6% 2028 16 5,000 100.44 99.102
08-Mar Nationwide 6.875% U/D 5,000 88 98
12-Dec-10 Ecclesiastical 8.625% prefs U/D 5,000 102 119.375
Category Sum            Notes
Securities £91,677 Valuation of current holdings
Accrued £1,043 Interest accrual on above 
Cash 57,693.34 Inc. interest & coupons received. 
Total £150,413

You are welcome to discuss our portfolio in the fixed income forum.

Richard Berry is full time at Stockcube, Investors Intelligence amd Fixed Income Investor, previously a derivatives broker at MF Global and also runs user generated financial analysis site TradingResearchPoint.