Portfolio Update – September 2014

September was a brutal month for returns, but I did manage to fix the asset allocation a little by going long some CBO.TO in my TFSA. Reviewing the results, using traditional methods my returns are down -2.44%, however if we use the Modified Dietz method, I am actually up 2.00%. This just goes to illustrate how the timing of your trades in a given period can greatly affect your perceived returns (in this case, I gained 4.44% due to the purchase of CBO.TO, all things being equal).

2014-09 Monthly Performance

2014-09 TTM Performance

The benchmark was down as well at -1.25%, and this month has put a drag on my Sharpe ratio, which dropped from .45 to .38.

As I said, I also purchased some CBO.TO (250 shares to be exact), which has improved my weights a little. Last period my fixed income was 5.6% (target range 20.0%-30.0%), and this month it is up to 8.0%. Only a 2.4% bump, but more than I had before.

2014-09 Asset Mix Allocation by Asset Class

These short-term fluctuations in the market don’t worry me too much — I am still making good progress overall, at 19.82% for the last twelve months.

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