The Sleepy Mini Portfolio was launched in September 2007 to demonstrate how a super simple, regular investment program can slowly but surely build wealth over a period of time. All you need to implement such an investment program are (1) some initial effort in mapping out an asset allocation strategy (2) a calculator to divvy up your regular contributions and (3) discipline to stick to the strategy through all kinds of market conditions. I have personally implemented this portfolio for our kids’ RESPs (as have others) and if you want a more sophisticated portfolio you may to check out the Sleepy ETF Portfolio.
The portfolio kicked off with an initial infusion of $1,000 with a target allocation of 20% bonds, 20% Canadian stocks, 30% US stocks and 30% International stocks. Another $1,000 was added to the portfolio every quarter since then for a total investment of $25,000 so far. Here’s how the portfolio looks as of January 28, 2014:
TDB909 – Canadian Bonds – $6,548 (18.8%)
TDB900 – Canadian Equities – $6,790 (19.5%)
TDB902 – US Equities – $10,881 (31.2%)
TDB911 – International Equities – $10,663 (30.6%)
Market value – $34,883
Total Invested – $25,000
I’m going to add another $1,000 to the portfolio and rebalance it to the original target allocation using this rebalancing spreadsheet. Here are the results:
TDB909 – TD Canadian Bond Index (e-Series) – Buy units for $628.
TDB900 – TD Canadian Index (e-Series) – Buy units for $386.
TDB902 – TD US Index (e-Series) – Sell units for $115.
TDB911 – TD International Index (e-Series) – Buy units for $101.
The following chart shows the performance of the Sleepy Mini Portfolio since inception.
The portfolio has returned an annualized 9.8 percent since inception. A word of caution: long-term returns from this portfolio will likely be much more modest because we are coming off an year with strong returns.