Initial Value $10,000.00
March 11, 2008
Update Value $20,549.11
March 6, 2017
By Gordon Pape
It takes several years and at least one market cycle to accumulate enough data to assess the performance of a portfolio against its benchmark. We now have nine years of experience with the IWB Defensive Portfolio, which was launched in March 2008. At this point, I think we can state without reservation that it has been a great success.
This portfolio was designed for investors who wanted continued exposure to stocks while reducing downside risk. To achieve that, the initial portfolio weighting was 40% fixed income, 60% stocks. The original value was $10,000.
In the nine years since, I’ve made several changes to the portfolio but I have always aimed at keeping the fixed income exposure to about one-third of the total assets or more. The rest is invested in blue chip, dividend-paying stocks – five Canadian and one American.
There have been several changes in the portfolio over the years, which is why the current book value is much higher than the $10,000 valuation at the time of the launch. Based on the inception value, we have a total return of 105.5% to date. That works out to an average annual growth rate of 8.33%. The target rate of return for this portfolio is between 5% and 6% annually so we continue to run well ahead of that.
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Defensive portfolio details
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