The Sleepy Mini Portfolio gained another 5.1 percent since my previous update approximately one quarter back. The portfolio was started with an initial investment of $1,000 in August 2007 and it is assumed that periodic savings of $1,000 is added to portfolio every quarter. Here’s how the portfolio components were valued as of February 28, 2011:
TDB909 – Canadian Bonds – $2,964 (19.0%)
TDB900 – Canadian Equities – $3278 (20.8%)
TDB902 – US Equities – $4,673 (30.7%)
TDB911 – International Equities – $4,822 (29.5%)
Total – $15,737
Total Invested – $14,000
We’ll now add another $1,000 to the portfolio and rebalance it to the original asset allocation — 20% bonds, 20% Canadian stocks, 30% US stocks and 30% international stocks — using this rebalancing spreadsheet. As an aside, if you are using TD e-Series funds, you can invest a smaller sum of money than $1,000. If you sign up for a Pre-Authorized Purchase Plan, the minimum required per fund is only $25. That means, you need just $125 to start a Sleepy Mini Portfolio such as this one (you would, of course, rebalance, say, once every year).
TDB909 – TD Canadian Bond Index (e-Series) – Buy units for $352.89.
TDB900 – TD Canadian Index (e-Series) – Buy units for $100.00.
TDB902 – TD US Index (e-Series) – Buy units for $347.66.
TDB911 – TD International Index (e-Series) – Buy units for $199.45.
Once again, the Sleepy Mini Portfolio does not end up with a precise 20-20-30-30 asset allocation because the TDB900 requires a minimum investment of $100 but the amount to buy came out to $69.34. Therefore, I bumped up the Canadian stock allocation slightly at the expense of Canadian bonds.