Our model portfolio which we call the “Medium Duration Fixed Income Portfolio” just keeps trucking along as originally intended.
This portfolio has hardly been touched since it was originally composed on 2/8/2018 and that was the intention of the portfolio. This portfolio is not intended to be ‘traded’, ‘flipped’ or be changed at all. If an issue is redeemed (or called) of course the portfolio has to change as a new replacement issue is added. Additionally if we saw obvious problems with a particular issuing company we would probably exit the position.
To date the portfolio has a gain of a bit more than 3%–which might seem meager, but we couldn’t book any dividends or interest to speak of until March as we had to wait after purchase a dividend/interest cycle to occur and we did not have the portfolio invest in full (or near full) until April.
One of our readers ‘Bea’ asked about the reality of the portfolio–they are simply ‘model’—BUT generally this is how we invest and we personally own 6 of the issues (out of 11) in our personal accounts.
Who is this portfolio intended for? A somewhat conservative investor who was a respectable income stream without expectations of capital gains. When we originally introduced similar portfolios they were meant to give a return to a conservative investor who no longer had the option of CD and Money Market income–obviously this portfolio is not as safe as CD’s and Money Markets.
The portfolio is about 93% invested and we have 1 item to add soon (we need to add a UHaul Investor Club portion).