Portfolio Update – March 2017

Quite some time since I last posted, and the markets have been a bit of a roller coaster. The last of my statements have finally come in, and I’ve been able to compile the first quarter results for my portfolio.

The total fund T3M (trailing three month) return was 4.94%, dragged down primarily by my EPSP portfolio.. While this portfolio is a relatively small amount (less than 1% as of this quarter), it is a visual drag, as illustrated by the huge negative orange bars in the graph. The benchmark T3M was 4.06%, so I am still beating my benchmark, which is the ultimate goal (otherwise, why would I bother doing the work of picking my own investments?).

As I am an income oriented investor, the following graphs are somewhat more important, as they illustrate the going concerns for the portfolio (e.g. a stable, growing, cashflow).

Passive income for the quarter came in at 7.70% under the benchmark. How much of this is due to timing, and how much is due to selection, is a different story. The income power of the portfolio is something that I am watching more closely.. I liquidated a large percentage of the portfolio in May 2016 to purchase our new house, so by the next quarter, we will see what the one year run rate of passive income is. As you can see from the charts, passive income has been generally trending downward, and March was the first month that we did not break the $6M mark in over a year. This does concern me, especially since we broke the $7M mark in 2016 at this time.. But given the percentage of the portfolio that was liquidated, I am not surprised.

Presently the portfolio is in the accumulation phase, as I push as much spare cash as I can into my various accounts, to start building up a sufficient capital base to generate large amounts of passive income again. That said, this build-up will also provide me with an opportunity to revisit my allocations:

Equity exposure is still in the high seventies (~75%), which is surprising since I have been pushing virtually all spare cash into real estate ETFs (primarily VRE.TO) to increase my real estate exposure. The lack of relative growth in real estate is not due to real estate performing poorly, but it is a reflection of equities performing relatively stronger than the real estate sector.. While I have invested an additional 2% of capital in real estate, real estate itself went down by less than 1%…which means that even though I have put capital in, the equity growth is overshadowing the real estate growth! I am not going to look a gift horse in the mouth, but this does mean that I will continue to move more capital into real estate in the coming months, primarily through VRE.TO, HR-UN.TO, and REI-UN.TO.

Onwards and upwards!


One Comment on “Portfolio Update – March 2017”

  1. A very interesting analysis. I hope you can continue to increase your income for many years. Cheers


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