Hawking Portfolio Review – 3 May 2022

A little color for the garden

The Hawking Portfolio is an income generating portfolio of CEFs and requires very little management other than to re-invest the dividends in underweight funds so as to promote geometric growth. Dividend distributions for April are now in and the portfolio looks like this:

With a little over $800 cash from dividend payments I will be looking to put this to use by “topping up” a fund that may be a little low on allocations. But, before looking at this, let’s check the performance of the portfolio knowing that US equities are down ~15% since the beginning of the year:

The benchmark AOR fund, because it is diversified (including Bonds), is holding up a little better than US equities losing only ~11% since the beginning of the year but the Hawking Portfolio is doing even better, losing only ~6%. This is due to the healthy dividends being paid – that are then re-invested at lower prices to dollar-cost average the investments.

With a little over $800 cash I will be adding ~50 shares of NMAI to the portfolio since this is currently paying 9.7% interest and is trading at a 12.5% discount to Net Asset Value (NAV).

That will be it until next month when we should pick up another $700+ in dividends.

David