Model Portfolio

Note: The portfolio is operated on a "real money" basis with an initial deposit of £100,000 and traded through our live bond account. This is in order to accurately reflect the performance and holds a mixture of credits and bond types, from the AA-rated Places for People bond, down to more speculative holdings such as the unrated Enterprise Inns bond. The Portfolio also has a small proportion of its holdings in fixed income preference shares and "bond-like" instruments. Fixed Income ETFs may be added from time to time.


  • GKN 6.75% 2019 - I follow the model portfolio and while i have not replicated exactly have a number of the bonds including GKN 2019. I see that this has just been sold in the portfolio and I as a relatively inexperienced bond investor am wondering whether to follow suit.
    I bought at 103.25 in Oct 2010 so I know if i hold to maturity there is a capital loss but the the the YTM is 6.18%. To me that does not sound too bad as I hold in a SIPP.
    Looking at other posts about Selling YTM seems to be the key measure plus of course credit risk of default (but GKN is likely to be here in 2019 I guess).
    Thoughts appreciated
  • I note you have a 5,000 pound nationwide 6.875% pib holding in the portfolio. when i tried to buy these i was told that the minimum holding is 100, 000 pounds. can anyone confirm what the minimum holding is?
  • Whilst it is hard work to track new issues (with Hendersons Funds always in the way and FixedIncome Investor only a shadow of its former self due to conflict of interest with main sponsor's fund management arm) it is comforting to know that we are not missing much so far. BBB Digital Realty Trust issues 12 years at 4.25% and Severn Trent similar maturity at 3.625 -let the funds buy this and stay well clear. Sterling looks weak, so foreign capital hardly in a rush to buy gilts, yet government has huge funding needs- what does do to the benchmark?
  • Normally minimum holding is another way of saying the denominations are £100,000 which would means the smallest size of each bond is £100,000 so you cannot buy a nominal amount of less than that.

    However, as far as I can see the denominations of this issue are £1,000. It may be best to check the ISINs. I have GB0033882084. If you have this one in mind then you should be able to buy in sizes of 1,000 unless there is some internal restriction with your stockbroker.

  • How i wish to contributed,as a 67 pension try to keep up for a rainy day.
    what is the differance between sipp/pension fund and isa??
  • Get your spelling up to scratch, Novice. Then do your homework as to pension investments (e.g.Sipp) vs others. Suggest google etc., no need to waste this Forum's time. Illiteracy (financial and otherwise) will result in poor decisions.
  • Question for Model Portfolio........I noticed that you had recently sold these at 144p.
    Given that they have an abnormally low threshold before conversion (5% tier one capital) and with the running yield and yield to maturity still in junk territory I'd be interested to hear your thoughts. Regards swprice
  • Hi @swprice - we got out at 140 a little before they reached 144. The reason for selling was that the cash price is very high and it is the yield to maturity that matters rather than the running yield. Although that is still high we have decided to rationalise into safer more liquid retail bonds as the higher beta bonds have much less upside this year.
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