You have just left the Barclays Stockbrokers environment.
Do not give out your Barclays Stockbrokers login and password.

Cookies
Barclays uses cookies on this website. They help us to know a little bit about you and how you use our website, which improves the browsing experience and marketing - both for you and for others. They are stored locally on your computer or mobile device. To accept cookies, continue to use the website. Alternatively, go to the cookies policy for more information on how to disable cookies.

Acknowledge and close this message.

Analysis & Comment:  

print:
    

The portfolio is once again long cash, having taken some profits on the Next 5.25% 2013, liquidated our non-performing holding in the Bradford & Bingley PIBS and sold £10,000 Lloyds 5.375% 2015 in order to lighten up on financials. There are a many options for reinvestment, and another PIBs may be on the shopping list for March.

I have added a couple of positions in index-linked instruments, but these have been weak performers, the RBS inflation-linked 2022 particularly so. Whilst index-linked instruments are a useful hedge, I am not entirely unconvinced that a better solution is to buy higher-yielding bonds. Of course, this comes with credit risk attached, but the return here is more real and immediate.

A couple of readers have commented that the model portfolio is (a) overweight financials and (b) too trading-orientated. I think these are both fair points. The former is a tricky one - there are an awful lot of financials in the GBP bond market and with the restricted choice that is open to private investors, the portfolio has a tendency to slide in that direction. On the second point, I agree, the portfolio is slightly overtraded and this may well be a function "feeling the need to do something" - and keeping interesting copy on the website! I shall bear this advice in mind going forward.  

Some readers would prefer a greater focus on income rather than the current "roll up" calculation. Again this is fair point although I have no plans to change the calculation basis at present. The addition of a "yield at purchase" column should help.  

This month I have arranged the table in terms of maturity order (another reader suggestion). This gives a better overview of the structure of the portfolio. The same reader has suggested adding YTM at purchase and averages thereof. This is a good idea and Iíll drop it in next month ( Iíll have to do some digging in my records).  

Overall performance (which is measured on a total return basis) is good.  We have clawed back some of our losses on B&B, and financials have improved. The portfolio is up 3.9% from last month and if we could do that every month, that would be something.

 

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

 95.82 105  10,500
16 Aug 2009 RBS "Royal Bond 5.3% 2015 4 100  £100 101.2  10,120 /

7 Mar 2007

Segro 5.5% 20 June 2018

7

5,000

  97.35

 99

 4,950

 

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

  83.5

 90.5

 5,430

 

04 Jan 2011 National Grid 2.983% 2018 7 7,000  144.71  145  10,150

 

04 Feb 2010 GKN 6.75% 2019 8 10,000  97.56  104  10,400
28 July 2010 RBS Royal Bond  5.1% 2020 9 5,000  96.03  91  4,550
06 May/19 Nov 2010 Goldman Sachs 5.5% Oct 2021 10 10,000  87.9  92  9,200
04 Nov 2010 RBS Inflation-Linked (3.9% min) 2022  11 5,000 100  92.4  4,620
20 Sept 2010 Yorkshire Building Society 13.5% 2025 CoCo 14 5,000  116  115  5,750
16 Sept/01 Dec 2010 Lloyds 6.5% Sept 2040 29 10,000  96.35  93.5  9,350
20 May 2010 Nat West 9% prefs (undated) U/D 5,000  1.03  1.10  5,500  /
12 Dec 2010 Ecclesiastical 8.625% prefs U/D 5,000  1.02  1.11  5,550  /

 

Category Sum            Notes
Securities

£96,070

Valuation of current holdings
Accrued

£2,158

Interest accrual on above 
Cash

£24,738

Including interest & coupons received. 
     
Total

£122,966