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Portfolio Update – May 2019

Happy summer, and I am glad to have you back here to the All Seasons Portfolio blog for another monthly update. This time, we will take a closer look at the development for May 2019.

I have decide to keep these monthly updates free from other topics as I have had in the past. For example, I have been presenting certain investment choices or tips, but I believe it may be more stringent to have such texts separated in their own blog posts. Do you agree?

The month of May was in general a rocky month for the equity markets. For example, the MSCI World Index fell from 2170 points to 2046 points – a fall of nearly 6% over the course of just month, which could be considered quite a big correction. Still, the index is in positive territory year-to-date.

This fall in equities also had an impact on my Small Cap Value stocks in the All Seasons Portfolio. Small cap stocks are often way more volatile than blue chip corporates, why the ETF unit price in my portfolio fell from €33.22 to €30.23 (-9%). But, as equity only constitutes 15% of my portfolio, it was not a great hit to my wealth. Soon it could be time to increase the equity portion again to balance the portfolio, so maybe I would then be buying at a low (depending on the market development going forward)? Other assets were more or less stable with slight increases for TIPS and Government Bonds.

A new addition in the portfolio is Mid-Term Government Bonds. Now, finally, I have included all asset classes in my portfolio, so from now on, my task is to add to the existing asset classes to balance the portfolio, to achieve the sought splits. There is still some way to go to get the percentage splits right, but I’ll get there eventually.

The newest addition is the ETF iShares € Govt Bond 3-5yr UCITS ETF EUR (Dist), of which I bought one unit at €171.97. With this, my splits end of month (compared with aimed allocation) were:

So the next step will be to add where I have too little, and that is in the Equity, Long-Term Government Bonds and Intermediate-Term Government Bonds baskets.

An in absolute numbers, my portfolio has developed month by month as shown in this graph:

The exact holdings of my All Seasons Portfolio as per 31 May 2019 were:

iShares $ TIPS UCITS ETF USD (Acc) (EUR)TIPSIE00B1FZSC47      381.96 €
Vanguard EUR Corporate Bond UCITS ETFCorporate BondsIE00BZ163G84      370.44 €
iShares € Govt Bond 3-5yr UCITS ETF EUR (Dist)Govt Bond MidIE00B1FZS681      172.16 €
iShares J.P. Morgan EM Local Govt Bond UCITS ETF USD (Dist) (EUR)Govt Bond LongIE00B5M4WH52      367.29 €
iShares $ Treasury Bond 7-10yr UCITS ETF USD (Dist) (EUR)Govt Bond LongIE00B1FZS798      356.80 €
Invesco Bloomberg Commodity UCITS ETF (EUR)CommoditiesIE00BD6FTQ80      327.83 €
Xtrackers Physical Gold ETCGoldGB00B5840F36      423.96 €
SPDR® MSCI USA Small Cap Value Weighted UCITS ETF USD AccEquityIE00BSPLC413      423.22 €
Total 2,823.66 €

I must admit it is very exciting to keep updating this blog and seeing my wealth growing every month. It is an awarding experience, and I feel it every time I log onto my broker to see how my investments live and work to give me more money. Compound interest is a powerful tool.

Not much to add content wise from my end for this month. I hope that you are enjoying following this blog of mine. Please send any questions or suggestions my way through the comment field. Thumbs up and appreciation is also welcome. Have a great June now, and I’ll catch up with you on the other side of the month.

Thanks for your time!

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