Portfolio Experiment - Month 5

30 Apr 2017 11:03
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Month five into the Motif portfolio experiment and the markets returned back to the upside lifting the portfolio return to 6.75% from last month’s 5.68%. As a basis the S&P has grown 6.49% so we have a slight beat versus the market.

There was some interesting news abut the free stock trading brokerage firm Loyal3 closing down. Offering free trades is a tough business model to execute and not entirely a shock that the doors have closed. However, it does beg the question if other low discount brokerages (such as Motif and Robinhood) are viable into the future.

Dividend Income

Projected April dividend income $29.72
Actual April dividend income $30.12
Growth of +$0.40

Income grew thanks to raises from Wal-Mart (WMT) and W.P. Carey (WPC).

Portfolio Value

Pre-Retirement Retirement
Starting Value $10,000 $10,000
Current Value $10,675 $10,675
Cash Balance $134.20 -
Cash Distributed - $134.20
Total Portfolio Value $10,809 $10,675
Total Return 8.09% 6.75%

April allowed the portfolio to return to its winning ways. We already noted that the Retirement portfolio has a slight edge on the S&P 500 (6.75% vs. 6.49%) but the pre-retirement funds total return is starting to show a considerable edge.

Considering the S&P 500 averages a ~2% yield the total return (equity + dividends) would be 6.49% + 0.67% = 7.16% whereas our total return for the Pre-retirement is 8.09%.

From a sector perspective, Commodities are still getting severely hit (down 15%) but April saw a resurgence in REITs and Industrials.

Portfolio Sector & % Allocation Gain/Loss
BASIC MATERIALS - 4% -15%
CONSUMER DISCRETIONARY - 12% 0.1%
CONSUMER STAPLES - 12% 4.3%
FINANCIALS - 10% 2%
HEALTHCARE - 10% 6.1%
INDUSTRIALS - 10% 10.2%
REAL ESTATE - 15% 11.3%
TECH/COMMUNICATIONS - 13% 15.2%
UTILITIES - 6% 17.3%
BONDS & INCOME - 8% 3.25%
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