The imaginary mechanical PIF A have now existed for two years. The first year it was beaten by DAX by around 7.6% which is a lot but one needs to bring into the equation that the DAX index re-invests dividends and I do not do that with my PIFs.
In the graph above we see that now in the second year DAX once again performed better and was up by 14.6% which the PIF A was only up 11.5%. The difference this time is 3.1% so PIF A is improving and accounting for dividends then they were almost flat.
For the previous summary please visit PIF A: January 2015 and for the previous annual summary please visit PIF A: July 2014 that also explains a bit more.
The rebalancing once again took place according to the best five and worst five share price performers of DAX.
This means that we sold off:
FMC (analysis FMC 2015)
Fresenius (analysis Fresenius 2015)
Merck (analysis Merck 2015)
DT Börse (analysis Deutsche Börse 2015)
Infineon (analysis Infineon 2015)
So twice in a row we now sold off Infineon shares which would have been bad news for an investor since that means that plenty of potential profit was lost last year when we sold it off too early.
And we bought more of:
Lufthansa (analysis Lufthansa 2015)
RWE (analysis RWE 2015)
E.On (analysis E.On 2015)
Adidas (analysis Adidas 2015)
Lanxess (analysis Lanxess 2015)
Twice in a row we have now bought more of Lanxess and RWE which means they start to carry a very heavy part of the portfolio.
Conclusion: PIF A is still doing a little bit worse than DAX so that is indeed good but if we consider that DAX paid out on average 2.2% dividend then I start to be a little concerned. Anyway. The third year is starting and I have high hopes that DAX will continue to beat PIF A.
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