My portfolio’s returns

This page shows the returns of my directly invested portfolio, since the start of 2013.  For information on how this portfolio is managed, see my Investment Policy Statement. Points to note:

  • I track my returns at the end of each month. I track my portfolio in GBP, using the prevailing currency rates.
  • Some accounts have delayed reporting so these figures are subject to change after a few weeks. Anything older than four months ago is locked down.
  • I unitise the portfolio, which strips out the effect of additions or withdrawals.
  • These returns are net of fees and withholding taxes, but before any year-end additional taxes are paid (which I pay out of other funds).
  • The graph below shows what would happen if £1m had been invested at the start of 2013 and had received the same returns each month as a ‘unit’ of my own portfolio.

Investor Return (money-weighted return, internal rate of return)

From 1 January 2013 to 30 November 2016

Investor return: 12.2% (Annual compound return)

Portfolio return (time-weighted return, comparable return)

Portfolio return as at 30 November 2016
1 month -0.5%
3 months +1.1%
YTD +19.7%
1 year +17.6%
3 years 10.5%
Sharpe ratio 1.5
Maximum drawdown -7.0%

2016-11-investment-growth-of-gbp1m

 

 By month 2013 2014 2015 2016
January 4.5% -2.1% 3.5% -2.2%
February 2.5% 3.5% 2.6% 1.3%
March 0.9% 0.7% -0.1% 2.9%
April 1.8% 1.4% 1.1% 1.0%
May 2.3% 1.5% 0.4% 2.1%
June -3.1% -0.5% -3.9% 5.7%
July 4.4% -0.9%  2.3% 3.8%
August -2.0% 2.7% -4.4% 2.7%
September 1.1% -3.1% -1.1% 0.5%
October 3.4% 2.1% 4.0% 1.2%
November -0.1% 2.9% 1.3% -0.5%
December 0.9% -0.4% -1.7%

With thanks to bogleheads.org for the spreadsheet and methodology.


3 Comments on “My portfolio’s returns”

  1. retirementinvestingtoday says:

    Hi FvL

    If I understand correctly this is not the return on all your wealth, which also includes BTL, commercial property, private equity etc, but is based on the portion of your portfolio which includes 80% Equity, 15% Bonds and 5% cash?

    I’m asking because as a comparator to your 13.7% my portfolio (which includes 100% of my wealth and like you is net of all investment expenses and withholding taxes) has only managed a paltry annualised 5.7% between the 05 Jan 13 and the 06 Jun 15 (I capture my portfolio weekly thus the odd dates). Sure the market has taken a hit in the past few days but it’s still a big difference. Over a longer term I’ve managed an annualised 6.5% between the 05 Jan 08 and the 06 Jun 15.

    Even considering my lower risk portfolio (10% cash, 26% bonds, 10% property, 5% gold) I’m still a long long way behind you. I’d be interested to know why – is it just my lower risk asset allocation or are you outperforming the market by a long way? I know I’m out performing my benchmark since the start of 2008. Do you know how much you are out performing a similar passive index tracking benchmark that is similar to your current allocations?

    Cheers
    RIT

    Liked by 1 person

    • @RIT
      Yes you understand correctly. This is the portion of my portfolio which is (supposed to be) 80%:15%:5%.
      I haven’t quite done the benchmark analysis but do plan to do so. I find the total return numbers hard to come by (for e.g. FTSE100/FTSE350) so may end up fudging it a bit.
      I am surprised to see 13% too; I hadn’t been tracking this number until I prepared this blog post.
      If I am outperforming, why? I haven’t done this analysis either. But I think the reason is probably a tilt towards the USA (which has averaged about 15% during this time period) and towards Dividend Growth, which has done very well esp in the USA. Passive constitutes less than half this portfolio, so my ’tilts’ are material.

      Like

      • A lot of data is available freely from here http://markets.ft.com/research/Markets/Data-Archive
        I also use the iShares website for proxies as their charts are date variable and contain the performance data for both the ETF as well as the benchmark they are tracking. Hopefully might help you pull a performance vs benchmark post together🙂

        My allocation to the US is nominally only about 6% (and the US CAPE keeps me below that today) vs your 20% so that would certainly make a difference. Not sure about Divi Growth as I now have a fairly advanced HYP which is out performing the UK markets by some margin.

        Will be interesting to compare in the years ahead. I’d expect you to beat me performance wise over the long term but with more volatility.

        Liked by 1 person


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