Portfolio Update

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.

10 thoughts on “Portfolio Update

  1. Greetings R2R! Your portfolio looks pretty broadly diversified. You hold more fixed income than I’m comfortable with, but that’s just me……and bonds could be just fine if your duration is short. You should get a chance to add to your Telecom and REIT holdings if they sell off as bond yields rise. Congratulations on the marriage also. We took the plunge about 18 months ago and are now expecting our first child.

    2014 looks to be an adjustment for both me and you R2R. Here’s to a great one!

    • Hi Bryan,
      I feel similar with my exposure to fixed income – a bit more than I am happy with – but I think I’ll probably liquidate some part of it in 2014 when we buy a house…but until then, we’ll keep our investments.

      Thats great news that you guys got married and are expecting your first child. Congratulations!!

      Thanks for the wishes.

  2. I think your allocation is reasonable, but I tend to agree with Fast Weekly on the bonds. I plan to bump up my bond holdings when rates are a bit higher. 16% isn’t excessive by any means.

    Congrats on the marriage!

    • Thanks for the wishes and feedback, CI. Some of the funds that we hold will be liquidated in 2014 when we buy a house – just a matter of figuring out when exactly do that and how much of the bond portfolio we should keep going forward.

    • I agree that those MERs are very high indeed. My wife has stuck with mutual funds over the years and we are looking into ways to transition and move out of those positions and save on the fees. Selling all the mutual funds and saving on the fees is one of the work items on my Goals list.

      Thanks for visiting and the comment, hotrunner.

  3. Hi R2R,

    you now have more than 50% of Canada in your portfolio.
    Is that now “Home Bias”?
    Or do you think, the canadian companies are better than others like in the USA or in other countries?

    For myself, I´ll invest max. 20% from my portfolio in Germany (my own country), because I don´t trust the german policy!

    Best regards

    • Hi D-S,
      Yes, I guess it is home bias in a sense. My wife’s portfolio is almost 95% invested in the Canadian market through the two indicated mutual funds above.
      The Canadian economy is very resource-based and service-based (with an ever shrinking manufacturing economy), so when it comes to energy, materials, banking/financial – its a great space to invest in…but the rest of the sectors are lacking.
      I am not happy with the geographical allocation that we currently have – and redeploying those funds for better diversification is one of my goals for 2014.

      thanks for stopping by and the comment.


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