Portfolio Update – December 2013

What a year for the stock market! I ended off the year with a return around 14% for my portfolio, but was not fully invested until December as I was trying to time the market. As a result, unfortunately, a good chunk of my portfolio didn’t see the gains that the year brought.

I know that I have a tendency (problem :) ) to time the market, so I also chose to participate in my company’s savings plan. Fortunately, they do offer mutual funds that follow the index, which means I am getting into the market every pay cheque, and it’s a bonus that the Management Expense Ratios aren’t ridiculous. Once I hit my one-year anniversary, I will also get a match! 2.5 months to go.

So this is what my investment portfolio currently looks like:

TFSA – Stocks (SLF), ETFs (XSB, XBB, ZRE)


Non-registered investment account – ETFs (XIC, VTI, ZPR)

My target allocation is:

Canadian equities: 28% (previously 30%)

US equities: 26% (previously 25%)

International equities: 26% (previously 25%)

Canadian bonds: 10% (previously 20%)

REITs: 5% (previously 0%)

Preferred Shares: 5% (previously 0%)

My current allocation is:

Canadian equities: 28%

US equities: 25%

International equities: 24%

Canadian bonds: 13%

REITs: 5%

Preferred Shares: 4%

Cash: 1%

My investment income is automatically set to reinvest in more shares, except for the Vanguard ones because RBC does not offer DRIP for them (BOOOO!). For 2013, I earned $3,245 in dividends, which is a 31% increase over 2012.

Changes since my last update:

TFSA – I sold off my CRS holding, moved my VTI into my investment account as I was getting hammered with the 15% withholding tax, and added ZRE.

RRSP – Decided to start adding VXUS instead of VEU as part of my international equity portion due to this post.

Investment Account – added ZPR.

I plan on maxing out my 2014 TFSA room with a $5,500 contribution in February, and am still deciding if I want to use the $3K contribution room in my RRSP, or save it for next year as it will result in a higher tax return. More bang for the buck! Otherwise, I will add to my investment account.

I have also previously mentioned that I was invested in Builders Capital Mortgage Corp., and in 2013, I received $4,025 in dividends from them. They decided to go public in December (CVE:BCF), and it will be interesting to see what the returns are like this year as I decided to purchase the Class B shares instead of the Class A shares.

How was your 2013? What are your investment plans for 2014?

Thanks for reading!