Last week, I presented an update on the monthly progress of my dividend portfolio. In this post, I am discussing the quarterly risk analysis. My objective here to make sure I am continuing to following my risk management process.
- Maintain pre-determined asset class allocation;
- Maintain pre-determined diversification (any sector should not exceed 10%); and
- Dividends from a single stock should not exceed 5% of total dividends.
My dividend portfolio holdings can be referenced in My Portfolio menu at top of this page.
Maintaining Asset Allocation
Chart 1 shows the asset class allocation along with my maximum target limits. In general, I am continuing to meet (or much closer) to my pre-defined target levels. During 3Q09, I did not make any contribution to the emerging markets index funds such as VWO and EPI. This was because I believe they rose too quickly to my comfort level. I am still tad lower than my maximum limit for emerging markets.