Pretty quiet day news flow wise today so it gives me a chance to give you a few updates on things post the month end.
Firstly just to note that the Simple Monthly Timing indicator that I have been following is still signalling invested for all the main UK equity indices.
Aside from that I have updated the Mechanical Compound Income Scores Portfolio that I launched last month with prices and scores to the end of the month. You can see the updated values and scores by clicking the link above or via the portfolio tab at the top of the Blog page. No Stock changes as I am planning to re-screen at each quarter end.
Having added the dividends earned on an XD basis of £108.25 or 0.36% to the cash balance, plus the market value change of £1098.80 gives a total return for the month of +3.63% which compares with +2.08% for the FTSE All Share Total Return Index. So not a bad start since the portfolio also had to overcome the initial purchase costs of 0.66%. However, I would not get too carried away as it is a focussed portfolio which is nothing like the All Share in its construction so I would expect monthly performance to be very volatile and it just so happens that it was positive this month.
Talking of construction I have added a bit of extra information on the sectors and a breakdown by index exposure. This shows the portfolio has a big tilt towards Mid 250 (50%) and AIM (36%) as I have just let it follow by and large the top scoring stocks. I notice now also that I probably was not rigorous enough in looking at the sector exposure when I rushed to make the portfolio up and as a result I have ended up with a big exposure to financials. In addition and as part of this exposure I have also ended up with some duplication of stock types with two fund managers (Jupiter & Schroders) and two spread bet type companies (Plus 500 and IG Group).
Aside from the regular re-screen in June I think this is something I should also address at that time, although clearly as these stocks are all scoring well it is obviously an area of the market which is doing and scoring well which I guess is no surprise given the on going bull market we have been enjoying for the last 6 years.
Big winners for the portfolio were Character Group, Alliance Pharma, Plus 500, W H Smiths and EMIS. While the laggards were Photo Me, Maintel, Diploma, Finsbury Foods and Bellway. Any way must get back to my own portfolio now as it seems the machine outperformed me last month, so it's one nil to the machine. Any way have a great week end dear readers - I'll be back - next week.