Performance 2022

Le rebond technique du marché, entamé en octobre, s'est brisé les dents en décembre, avec une perte de plus de 8% en CHF pour le S&P 500. Le Swiss Performance Index, plus défensif, a fait un peu mieux, en lâchant malgré tout 3.17%. Le determining portfolio limited the damage with a drop of "only" 1.7%.

The performance for this year finally stands at -3.9% against -17.5% for the MSCI Switzerland index. The PF's performance relative to the market is really excellent, even though I was hoping to end up in positive territory. The portfolio actually fluctuated between +6% and -5% during the year, while the market sank into the deep red.

Bien que la performance soit meilleure que celle du marché, une année négative n'est jamais agréable, d'autant que l'inflation a ratiboisé encore la valeur de notre argent. En cachant ses économies sous son matelas, Mémé a fait cette année mieux que la plupart des investisseurs, tout en ayant moins de travail. À court terme, on ne peut que lui donner raison. À plus longue échéance, évidemment, c'est une autre histoire.

Since the portfolio was launched on dividendes.ch in 2010, this gives an average annual performance of 7.5%, compared to 6.9% for the Swiss Performance Index. Certainly, Mémé has not done as well.

Since 2020, I have transformed the portfolio of growing dividends into a tactical asset allocation portfolio with a large share of microcaps. In the long term, this should help boost this profitability, well beyond the aforementioned figures, when the financial, economic and geostrategic framework has somewhat normalized. In the meantime, we must be content with relative outperformance.

Volatility

Du point de vue de la volatility, THE determining portfolio has demonstrated in this year 2022 its resilient and defensive character, fulfilling its role well beyond expectations. Volatility thus stood at 12%, half that of the MSCI Switzerland index! With such figures, the PF behaved as if it were overweight in bonds, while it had a clearly majority share of equities throughout the year. This is due to the tactical allocation of widely diversified assets, including the many new products introduced since this summer.

Income

I was able to generate CHF 28,862 in gross income through the portfolio during the year. This is the record since I started investing.

Je viens d'écouler ma première année civile d'indépendance financière et, pourtant, contre toute attente, je n'ai pas encore eu à ponctionner ni sur ces dividendes, ni sur mon capital. En effet, je suis parvenu à vivre uniquement à partir des loyers encaissés et de ma petite ancillary activity, qui m'octroie plus de rentrées que prévu.

This is a nice surprise, even if it means that I could have retired from my salaried activity much sooner! It does, however, leave me the possibility of reducing the time spent on my side hustle, or spending more on my hobbies. For the moment, however, I am still expecting a few big bills from the taxman, before drawing more detailed conclusions.

One last asset still in the testing phase

The new asset I have been telling you about for september is still in the exploratory period. I will have to postpone its introduction into the PF once again. I am hopeful that I will be able to introduce it next month, because the very promising results from the backtests are starting to translate into real gains in the productive testing phase. In the meantime, it continues to appear in the portfolio as "Asset in test", just before reserves and liquidities.

In the meantime, I would like to take this opportunity to wish you a happy and prosperous 2023.