Our Portfolio

Our Model Portfolio started life on 31st March 2009.

The reason behind the portfolio was to give investors a feel for how we would invest a lump sum and to give them some indication of what level of return we can achieve.

The initial amount to be invested was NZ$ 1m. This was split 50:50 between bonds and equities. To keep it honest, there is only one buying/selling time each month - and assets must be bought or sold at the closing price at the end of the month.

We will report, both here and in the Newsletter, on how the invested funds are doing and what have been the top performers in the portfolio.

See side bar "Performance by stock/bond" to download a spreadsheet which shows the performance of the individual components of the model portfolio since its inception.

As of the 11th December 2011, the portfolio was worth NZ$1.27m. We think that selling a fair chunk of the portfolio last month was the righ thing to do. Uncertainlyt still abound and Europe is guaranteed to go into recession, this could have consequences for the US and then for the world as a whole. At times of uncertainty like this, it is better not to have all your eggs in one basket. We think the "bob each way" bet that we have taken will pay off better in the longer run. We are not generally market timers, but when you are being slapped around the head with bad news, it pays to sit up and take notice. The portfolio is made up of around 21% cash, 47% bonds and equities are 31%.

The graph in the following section shows the value of the portfolio since inception.