Performance Update – August 2018

Returns for the month of August were rather uneventful. I deposited a total of $4,000 throughout the month ($500, $3,000 and $500 were my deposits), starting on August 15th, with the first few trades commencing shortly after that. The ending portfolio value was a $1 less then the deposits.   Starting value: $0 Deposits: $4,000 Transaction costs: ($14) Interest charges: ($2) FX charges: $0 Accrued dividends: $16 Realized gains (losses): $19 Unrealised gains (losses): ($20) … “Performance Update – August 2018”

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Portfolio Update – August 2018

At the end of August my margin portfolio was still in a bit flux as I was transitioning from my prior model of utilizing low volatility ETFs to the newer simplified allocation I outlined in my Target Portfolio post.   At the end of the period, due to rebalancing and a slight change in strategy my allocations are:   Canadian Equity 0.0% Global Equity 48.3% Canadian Preferred Shares 6.0% Self-Picks 45.8%   My portfolio values … “Portfolio Update – August 2018”

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Target Portfolio

As mentioned in my previous post Objectives & Investment Criteria, I have designed a target portfolio/asset allocation. Unlike my registered or tax sheltered accounts which I keep a strict target allocation, my margin account will be a bit less rigid. I will still allocate funds according to my outline but depending on the timing of cash flows into/out of the account I may deviate in the term short with the idea that I will be … “Target Portfolio”

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Objectives & Investment Criteria

When I first started my margin account I had some initial objectives but really viewed it more of an exploratory process. Now that I’ve had the account setup for a couple weeks my objectives have solidified a bit further.   Objectives: Gain an understanding of the potential risks and rewards of using leverage and build the appropriate tools to effectively monitor/manage those risks Maintain c.2x leverage to take on additional risk with the long term … “Objectives & Investment Criteria”

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Setting up a margin account

The key differences between different brokers when it comes to margin accounts is the financing rate you are charged for the borrowed funds and transaction costs. Upon comparing providers it really was a no-brainer to select Interactive Brokers (IB). The current financing rate is 2.87% (the most up to date rates can be found here: Interest and Financing) for Canadian dollars. Other Canadian brokers charge as much as double IB so be careful to shop … “Setting up a margin account”

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Introduction

I setup this blog to document and share my experiences, mistakes and learnings as I invest using a margin account. I will share my individual holdings, analysis, expenses, transactions and returns in hopes of providing a better understanding of the risks and rewards when investing with margin for the long term. It is a rather bold time to start using leverage as we are currently in one of the longest running bull markets in history, … “Introduction”

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