A year ago I set about creating a number of competing portfolios based on various selection criteria. The aim, ultimately, is to develop a blend of investments that meet my income and capital growth goals when I retire. For various reasons, I have not been able to devote sufficient time to review the portfolios or conduct any significant additional research during 2014 (as reflected by a reduced number of articles on this site during the past year). However, I had anticipated that each portfolio, except for the trading fund, would require minimal tinkering. Against the FTSE All Share Index falling from 3595 to 3573 over the year, the FTSE 100 falling by 2.5% while yielding an average of around 3.5%, how did the various portfolios fare? Which ones outperformed the market? What strategies will prevail in 2015 and beyond?
Back in July I conducted a mid-year review – below are the results for the full year:
Stock Rank Portfolio – Up 4% (current value £52,099) (Yield 2.13%)
SK Growth Portfolio – Down 32% (current value £33,799) (Nil Yield)
Trading Fund – Down 30% (current value £3,500) (Nil Yield)
Earnings Growth Portfolio – Up 7% (current value £53,413) (Yield 2.42%)
Tips Portfolio – Up 3% (current value £51,817) (Yield 0.55%)
Reliable Income Portfolio – Down 6% (current value £47,026) (Yield 3.77%)
Risky Income Portfolio – Up 1% (current value £50,754) (Yield 4.62%)
In a year in which the wider market fell, 4 out of 7 portfolios showed a gain and outperformed overall. However, the 3 under-performing portfolios were a disappointment, not least the SK Growth Portfolio that fared worst of all. Over the next few days I will review the constituents of each portfolio and make a few changes ready for the start of 2015 trading. Details will be posted within each of the portfolio pages.
A happy, healthy and prosperous new year to all!
