Personalized Index Fund C: July 2014

Grrrr! As can be seen in DAX vs PIF C graph above the final quarter also here was seriously bad! PIF C was even ahead of DAX with 1% and has now fallen behind with 2%. Both DAX and PIF C has been doing very well and have increased well above 20% each but in total this is now the third self composed fund that has been beaten by DAX during the first year running. If I would have had any investors then I am sure they would have walked away from the PIFs. Hahaha! To see the previous publication please visit Personalized Index Fund C - March 2014.

To see the composition of companies of PIF C please go to Personalized Index Fund C - December 2014. The PIF C fund is based on giving each company on DAX a value between 1 to 30 concerning P/E, P/B, dividends as well as ROE. The ten companies with the lowest score are then included into this fund and it will be re-balanced once per year.

To re-balance after the first year we removed:


K+S (see analysis of K+S 2014)
Continental (see analysis of Continental 2014)
Lanxess (see analysis of Lanxess 2014)

The companies that joined PIF C were:

BASF (see analysis of BASF 2014)
Deutsche Post (see analysis of Dt Post 2014)
FMC (see analysis of FMC 2014)

Here I find it funny that Deutsche Post was kicked out from PIF B but bought to PIF C and I am equally surprised that K+S and Lanxess gets kicked out.

The full list of companies are now: Allianz, BASF, BMW, Daimler, Dt Börse, Dt Post, E.On., FMC, MüRe and Volkswagen. If the cyclical automobile manufacturing crashes this fund will have serious problems as will PIF B.

The latest developments have for PIF C has been:

We are off to a great start with PIF C jumping up 3% these last couple of months while DAX has been crawling up only 1% unit.

Conclusion: The first year was lost to DAX and the start in year two is looking good for now. That I do not account for the dividends will here be a more serious problem than what I had anticipated because I am almost certain that is the reason for why the Q2 went so badly for my companies and not DAX that re-invest the dividends in the index which I have not done. Oh, well... I must just keep it in mind and beat myself slightly less when I make the comparisons.