Thursday 10 October 2013

September 2013: Portfolio Update.

Well, thats three quarters of the year gone and, event wise, we're right back round to where we started the year with a further sequel to the trillion dollar US drama that is the national budget and debt ceiling negotiations.
I'm not going to worry about what I can't control and there seems little alternative should a default occur.
As it is I have continued to buy shares and have added Vodafone following my considerations (Vodafone: "Deal or no deal" on Verizon Wireless!), in the wake of the company's announcement of a deal to sell its stake in Verizon Wireless. 

But as things stand September was another flattish month for my portfolio with a small decrease of -0.40% being registered whereas the FTSE100 increased by 0.77% in the month.
This looks to be a result of the US situation and a weakening dollar (affecting my portfolio), which saw the rate of exchange swing to $1.62 to £1.

So despite a few dividends coming in my portfolio notched up its third negative month for the year.
Dividends were received from BG, Microsoft, BP, and SSE.

At least, YTD my portfolio remains up by a healthy 18.41%, with the promise of fresh gains should the  US budget debate be resolved positiviely.

But, it also seems strange that there has been no European turmoil so far this year which is one less issue over recent years.

Back to my portfolio though.
Apple has continued to wallow despite the launch of the iPhone 5S and 5c, but subsequent record first weekend sales appears to have prompted analysts to steadily increase their targets for the company so perhaps the sentiment driven tide is turning again.

BP is also struggling now that it has entered a critical second trial phase of 3 with regard to the scope of the Gulf of Mexico disaster in which the judge will seek to determine the extent of negligence and the amount of oil spilled.

My portfolio's very own energy sector also wobbled following Ed Miliband's personally motivated comments to win electorate support. 
Given his part in driving prices up by record amounts whilst he was Labour's Secretary of State for Energy and Climate Change and his oft quoted statement from that time that ‘there is no low-cost energy future’ (http://www.thisismoney.co.uk: Going green meant gas bills rose 10% when Ed Miliband was energy secretary), I can only view it as a thinly veiled attempt to sway the mindset of those most vulnerable for his obvious personal gain.
The inevitable result being that if he were to become PM, then there would be any number of reasons why it wouldn't be possible.

As it is, I am looking at a potential top up of SSE if the window of opportunity remains open long enough.

But fair to say I have viewed recent months as a buying opportunity with my eye on the longer term.


Merchant Adventurer's Index
Forecast 1 month YTD 33 mth
Price % holding Div. yield % gain % gain % gain
R-R 1112.00p 31.36% 1.98% 0.00% 27.30% 78.49%
National Grid 730.50p 13.71% 5.76% -1.62% 3.91% 32.10%
Aviva 396.80p 9.94% 4.07% 2.59% 6.38% 17.44%
Apple ** $476.28 5.60% 2.04% -6.46% -8.82% 15.36%
BP 433.10p 5.38% 5.38% -2.94% 1.12% -4.39%
Vodafone 216.00p 4.62% 4.78% 4.48% 15.67% 14.09%
IG Group 579.00p 4.44% 4.12% 1.94% 28.67% 21.33%
William Hill 403.00p 3.92% 2.91% -2.94% 22.34% 118.81%
Imperial Tobacco 2287.00p 2.74% 5.07% 7.27% 1.24% 1.24%
BAT 3276.50p 2.65% 4.40% 0.66% -2.32% -2.32%
General Electric ** $23.89 2.05% 2.74% -1.03% 13.62% 50.78%
Centrica 369.70p 1.98% 4.70% -4.20% 10.82% 11.49%
BAE Systems 454.40p 1.94% 4.46% 4.44% 34.88% 37.70%
Microsoft ** $33.17 1.80% 2.55% -5.00% 23.87% 14.37%
SSE 1474.00p 1.73% 5.99% -5.69% 3.95% 20.33%
Morrisons 280.00p 1.51% 4.63% -3.51% 6.46% 4.63%
BG Group 1180.50p 1.47% 1.50% -3.79% 16.59% -8.91%
RSA Ins.Grp 120.90p 1.39% 5.29% 1.94% 2.19% 2.19%
Tesco 359.00p 1.22% 4.21% -2.06% 6.85% -10.01%
Cash 0.55% 0.00%
100.00% 3.59%
1 Month YTD 33 mth
Virtual Portfolio gain (incl. Dividends)
- 1 month gain   1955.19 - 1947.37 -0.40%
- YTD gain         1644.62 - 1947.37 18.41%
- 33 month gain 1264.20 - 1947.37 54.04%
- 45 month gain 1000.00 - 1947.37 94.74%
FTSE gain (excl. Dividends)
- 1 month gain   6412.93 - 6462.22 0.77%
- YTD gain         5897.81 - 6462.22 9.57%
- 33 month gain 5971.01 - 6462.22 8.23%
- 45 month gain 5412.88 - 6462.22 18.48%
Transactions:
03/09/2013 Buy Vodafone @ 2.05373
06/09/2013 Div BG Group @ 8.51p per share
16/09/2013 Div Microsoft @ 12.13p per share (act rec'd)
20/09/2013 Div BP @ 5.53p per share (act rec'd)
27/09/2013 Div SSE @ 56.1p per share
Notes: 
*     US Dividends are adjusted for exchange rate and 15% withholding tax
**   Sterling : Dollar exchange rate = £1: $1.62 as at 30/09/13


Chartwise the most telling point is the 2 months of falls in my portfolio as it continues to consolidate within reach of all time highs.


Click to enlarge, close to return.

So the most obvious immediate concern is the US debt ceiling negotiations, followed by potential escalation of the ongoing crisis in Syria.
But for the former I am optimistic that sense of some kind will prevail over political ambition which would remove some uncertainty and provide a base for further economic recovery.

I continue to be optimistic and look forward to the year end.

Related article links:
http://www.thisismoney.co.uk: Going green meant gas bills rose 10% when Ed Miliband was energy secretary

Related Posts:
Vodafone: "Deal or no deal" on Verizon Wireless!

August 2013: Portfolio Update.
- July 2013: Portfolio Adjustment (for new funds).
July 2013: Portfolio Update.

20 May 2013: Portfolio milestone.
April 2013: Portfolio Update.
March 2013: Portfolio Update.
February 2013: Portfolio update.
January 2013: Portfolio Update.
December 2012: Portfolio Update (2012 Year-end).