OK so I have talked about adding new funds to my portfolio and I've finally sat down and looked at the mechanics of doing so.
In a nutshell, I've been monitoring my portfolio as an index which is the obvious thing to do given that I am benchmarking myself against an index, in this case the FTSE 100.
In doing so I put my starting valuation as the base and made that 1000 then each month this has incrementally adjusted in line with the change in valuation.
However, adding new funds results in a change to the valuation and, of course, a change to the index number which is not what I want.
So I have had to take a view on Unit Trusts which constantly adjust for inflows/outflows of monies, and changes to the funds overall valuation, but still maintain a linear performance measure.
Doing so required a small step back in time to my starting index base of 1000 (1999.55 as at 31 July), and taking a lead from the Unit Trust Industry converted this into 1000 units with a value of 1.
If this was GBP then £1000 would buy 1000 units of £1 each.
Then as at the 31st July each unit would be worth £1.99955 so putting £1000 in at this time would only buy 500.1125 units at a unit value of £1.99955.
In this way, the unit price and performance measure is maintained but there would now be additional units issued which when added to the original units would give a greater overall fund valuation.
This would also work both ways should there be a removal of units from a fund.
Obviously there is a little timing difference as I have made the adjustment at a month end but as the funds have been used on direct purchases then the individual investment gains/losses/dividends will be aggregated into portfolio as I enter them in August's Portfolio Valuation.
Pre-adjustment as at 31 July 2013 (July 2013: Portfolio Update.)
| Merchant Adventurer's Index | ||||||
| Forecast | 1 month | YTD | 31 mth | |||
| Price | % holding | Div. yield | % gain | % gain | % gain | |
| R-R | 1175.00p | 35.57% | 1.87% | 3.62% | 34.52% | 88.60% |
| National Grid | 787.00p | 15.86% | 5.40% | 5.50% | 11.95% | 42.31% |
| Aviva | 371.00p | 9.98% | 4.30% | 9.12% | -0.54% | 9.81% |
| William Hill | 487.00p | 5.08% | 2.43% | 10.43% | 47.84% | 164.42% |
| Apple ** | $452.53 | 4.79% | 2.14% | 14.30% | -9.55% | 22.39% |
| IG Group | 578.00p | 4.76% | 4.11% | -0.34% | 28.44% | 21.12% |
| BP | 455.00p | 4.55% | 5.21% | 0.00% | 7.11% | -0.59% |
| General Electric ** | $24.37 | 2.39% | 2.68% | 5.25% | 23.70% | 64.16% |
| Centrica | 391.00p | 2.25% | 4.43% | 8.61% | 17.21% | 17.91% |
| BAE Systems | 446.00p | 2.04% | 4.56% | 16.45% | 32.38% | 35.15% |
| SSE | 1575.00p | 1.99% | 5.58% | 3.41% | 11.07% | 28.57% |
| Microsoft ** | $31.84 | 1.98% | 2.41% | -7.70% | 26.91% | 17.18% |
| Vodafone | 198.00p | 1.76% | 5.20% | 5.32% | 28.20% | 22.88% |
| Morrisons | 289.00p | 1.67% | 4.43% | 10.31% | 9.89% | 8.00% |
| BG Group | 1187.00p | 1.59% | 1.54% | 6.08% | 17.23% | -8.41% |
| Imperial Tobacco | 2206.00p | 1.40% | 5.28% | -3.25% | -3.81% | -3.81% |
| Tesco | 367.00p | 1.34% | 4.13% | 10.88% | 9.23% | -8.00% |
| Cash | 1.01% | 0.00% | ||||
| 100.00% | 3.34% | |||||
| 1 Month | YTD | 31 mth | ||||
| Virtual Portfolio gain (incl. Divs) | ||||||
| - 1 month gain 1893.90 - | 1999.55 | 5.58% | ||||
| - YTD gain 1644.62 - | 1999.55 | 21.58% | ||||
| - 31 month gain 1264.20 - | 1999.55 | 58.17% | ||||
| - 43 month gain 1000.00 - | 1999.55 | 99.95% | ||||
| FTSE gain (excl. Dividends) | ||||||
| - 1 month gain 6215.47 - | 6621.06 | 6.53% | ||||
| - YTD gain 5897.81 - | 6621.06 | 12.26% | ||||
| - 31 month gain 5971.01 - | 6621.06 | 10.89% | ||||
| - 43 month gain 5412.88 - | 6621.06 | 22.32% | ||||
Post adjustment as at 31 July 2013.
Note that the period performances remain the same but that there is a change to the cash weighting and the individual portfolio weightings but, that the overall 100% is maintained
| Merchant Adventurer's Index | ||||||
| Forecast | 1 month | YTD | 31 mth | |||
| Price | % holding | Div. yield | % gain | % gain | % gain | |
| R-R | 1175.00p | 32.27% | 1.87% | 3.62% | 34.52% | 88.60% |
| National Grid | 787.00p | 14.39% | 5.40% | 5.50% | 11.95% | 42.31% |
| Aviva | 371.00p | 9.05% | 4.30% | 9.12% | -0.54% | 9.81% |
| William Hill | 487.00p | 4.61% | 2.43% | 10.43% | 47.84% | 164.42% |
| Apple ** | $452.53 | 4.35% | 2.14% | 14.30% | -9.55% | 22.39% |
| IG Group | 578.00p | 4.32% | 4.11% | -0.34% | 28.44% | 21.12% |
| BP | 455.00p | 4.13% | 5.21% | 0.00% | 7.11% | -0.59% |
| General Electric ** | $24.37 | 2.17% | 2.68% | 5.25% | 23.70% | 64.16% |
| Centrica | 391.00p | 2.04% | 4.43% | 8.61% | 17.21% | 17.91% |
| BAE Systems | 446.00p | 1.85% | 4.56% | 16.45% | 32.38% | 35.15% |
| SSE | 1575.00p | 1.81% | 5.58% | 3.41% | 11.07% | 28.57% |
| Microsoft ** | $31.84 | 1.79% | 2.41% | -7.70% | 26.91% | 17.18% |
| Vodafone | 198.00p | 1.59% | 5.20% | 5.32% | 28.20% | 22.88% |
| Morrisons | 289.00p | 1.51% | 4.43% | 10.31% | 9.89% | 8.00% |
| BG Group | 1187.00p | 1.44% | 1.54% | 6.08% | 17.23% | -8.41% |
| Imperial Tobacco | 2206.00p | 1.27% | 5.28% | -3.25% | -3.81% | -3.81% |
| Tesco | 367.00p | 1.22% | 4.13% | 10.88% | 9.23% | -8.00% |
| Cash | 10.19% | 0.00% | ||||
| 100.00% | 3.03% | |||||
| 1 Month | YTD | 31 mth | ||||
| Virtual Portfolio gain (incl. Divs) | ||||||
| - 1 month gain 1893.90 - | 1999.55 | 5.58% | ||||
| - YTD gain 1644.62 - | 1999.55 | 21.58% | ||||
| - 31 month gain 1264.20 - | 1999.55 | 58.17% | ||||
| - 43 month gain 1000.00 - | 1999.55 | 99.95% | ||||
| FTSE gain (excl. Dividends) | ||||||
| - 1 month gain 6215.47 - | 6621.06 | 6.53% | ||||
| - YTD gain 5897.81 - | 6621.06 | 12.26% | ||||
| - 31 month gain 5971.01 - | 6621.06 | 10.89% | ||||
| - 43 month gain 5412.88 - | 6621.06 | 22.32% | ||||
Right with that finally sorted I need to get August's Update adjusted for the new purchases and posted.
- July 2013: Portfolio Update.
No comments:
Post a Comment