Performance for the first half of 2016

There performance in CHF from portfolio in the first half of 2016, amounts to 11,41%. Cumulatively, this brings us to an annual profitability since launch (03.02.2010) of +13.97%. The portfolio is doing significantly better than the market (S&P500 +2.07% in CHF) during this semester.

The market has been in a consolidation phase for a year now. It is marking time and the performances of recent years are no longer there. This is quite normal, given the Excessive stock valuations. In these cases, there is almost always a trigger that makes the price drop quite quickly to more attractive prices, and this time it seems that it is Brexit that wants to do it. At least it has tried, even if US and Swiss stocks have already recovered all their losses.

This portfolio was born from the rubble of the Internet bubble and subprimes. It learned the lessons of risky and speculative investments, it learned how to manage risks and diversify. It was shaped to be as little exposed as possible to external events, in particular to economic and financial upheavals. The various firewalls offered by the five strategies in the portfolio allow you to look to the future with serenity. Dividends help to reduce a possible drop in the value of shares. The low beta securities (low correlation to the market) that make up the portfolio overreact much less in the event of panic among market players. In addition, the Trading Auto Signal now allows absolute performance to be achieved, that is to say, positive profitability, regardless of market developments.

This was particularly evident following the Brexit crash: dividend-paying stocks fell significantly less than others. Companies in defensive sectors (food, healthcare, household, etc.), which are largely in the majority in their portfolio, performed particularly well. Examples include: Clorox and Johnson&Johnson which have even gained 6% in the last 30 days... But this was also the case for the portfolio's hedging strategies, in particular tobacco (+7% in 1 month for Reynolds) and especially REITs (+15% for Tanger Factory Outlet and Senior Housing over the last 30 days). Trading Auto Signal is not left out since after having conceded 2.7% on the day of the Brexit vote result, it directly regained more than 5% the following week.

The portfolio's dividend growth remains good, at 9,84% per year. The yield on purchase cost, on the other hand, has slightly decreased, to 3,57%. This is due to the capital invested in the Trading Auto Signal which only generates dividends when the position is bullish. The dividend yield of the SPY is also relatively low compared to the other stocks in the portfolio.

THE distribution ratio The average portfolio has unfortunately continued to progress and is now at 97%. This is mainly due to the shares of companies active in the energy sector, which have suffered a drop in profits, or even losses, due to the drop in the price of oil. In response, I sold BBL and BP. I still have XOM, whose situation is still acceptable, and CVX, which will have to be monitored more closely in the coming months.

In the first quarter, net dividends of CHF 1,407 were generated (CHF 1,138 in the same quarter of the previous year). In the second quarter, CHF 1,961 were received, compared to CHF 1,680 in the same period of the previous year. The second quarter is still fuller, thanks to the annual Swiss dividends.

I am thus progressing slowly but surely towards financial independence, having now travelled 18% of the path which will allow me to completely withdraw from the professional world.