I got married in September 2013 and so far avoided combining my portfolio with my wife’s – in order to track and check how my 2013 progress went without any skewing of the numbers. With 2013 ending in a couple of days, I have decided to include her holdings and starting 2014 – this blog, Roadmap2Retire will track our combined portfolios.
My wife’s portfolio consists of two mutual funds:
- Scotia Canadian Balanced Fund – which is a index fund tracking the Canadian S&P/TSX Composite Index and the DEX Universe Bond Index and has a MER of 2.03%.
- Scotia Diversified Monthly Income Fund – also tracking the same indices as mentioned above, with a MER of 1.45% (How does Scotiabank justify the difference in MER fees when tracking the same two indices?)
After including her holdings into a combined portfolio, our current portfolio diversification is as shown below. For the sake of comparison, I have included both the Before and After merger diversification charts. I think the portfolio is fairly well balanced, although I would like to see more exposure in Industrials, Technology and Telecom Services (In the old chart of sector allocation, I had merged Tech and Telecom into one group, but I have split that up now to follow the traditional 10 sectors of the economy).
Our asset allocation is still fairly well balanced after the merger.
Due to the addition of the new funds which are concentrated in the Canadian market, our combined geographical distribution is skewed more towards Canada with a 57% weighting. This is one area of balancing that we need to work on.
I have updated my Holdings page here.
What are your thoughts on this portfolio composition? I would love to hear thoughts, comments and feedback from the readers.