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Model Portfolio: 30 April 2013

Three new buys, one sale...

    

As rumblings of a bond bubble and the dangers of high yield bond warnings persist, our model portfolio continues to rise.

We've seen several new issues in 2013 so far, but not quite as many as members of our forum would like.  

Since the last review, we've seen a rise in overall value from £151,557 to £156,335.   This is driven by the good performance in our Born on ORB new issues and some good existing performers.

Recent good performers include the Places for People 1% RPI 2022 which is up nearly 6% and National Grid PLC 1.25 2021 up just below 5%.  

The Italy 6% 2028 and ICAP 5.5% July 2018 also deserve a mention up as both rallied nearly 4% in a couple of months.

Adjustments: We've added two new issues, one new buy, and disposed of one existing position. The two new issues additions to the Portfolio are:

(1) the International Personal Finance and

(2) Provident Financial bond. The new buy is Unite Group 6.125 2020 which Dr Wong highlighted in here.

As it was slightly long dated we sold the Enquest 5.5% 2022 new issue.

Purchase Date Issue Life (yrs)  Nominal Purchase Price Current Price Current Value Accrued Interest
24.3.11 Provident Financial 7.5% 2016              4.00      6,000.00       100.15    107.80         6,468.00           40.57
31.7.12 ICAP 5.5% July 2018              6.00      5,000.00       100.00    106.54         5,326.75           69.89
3.9.12 CLS HLDGS 5.5% BDS 2019              7.00    12,000.00       101.30    101.78       12,213.00         224.25
10.10.12 Workspace 6% Sept 2019              7.00      5,000.00       100.00    104.68         5,233.75           19.67
16.5.12 Tesco Bank 5% 2020              8.00      5,000.00       100.00    106.33         5,316.25         112.57
20.9.12 ICG 6.25 Sept 2020              8.00    12,000.00       100.00    105.20       12,624.00           91.71
13.10.11 National Grid PLC 1.25 2021              9.00    10,000.00       100.00    115.80       11,580.00             9.87
31.1.10 Places for People 1% RPI 2022           10.00      6,000.00       100.00    112.18         6,730.50           15.92
8.3.11 Italy 6% 2028           16.00      5,000.00       100.44    107.17         5,358.35         224.17
8.3.12 Nationwide 6.875%  U/D       5,000.00         88.00    105.50         5,275.00         107.30
5.3.13 Paragon 6% 2020              7.00    10,000.00       100.00    102.50       10,250.00           96.20
8.5.13 IPF 6.125 %      7,000.00       100.00    102.10         7,147.00                  -  
26.3.13 Unite Group 6.125%     10,000.00       103.50    104.65       10,465.00         238.94
27.3.13 Provident Financial 6% 2021      5,000.00       100.00    103.80         5,190.20           30.16

Note: The portfolio is operated with real money 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.

Category Sum            Notes
Securities    109,177.80 Valuation of current holdings
Accrued        1,281.22 Interest accrual on above 
Cash      45,876.22 Inc. interest & coupons received. 
Total    156,335.24