Year Two: 05 May 2024
This is a report on the “virtual” HYP constructed in January 2023, as recorded on this thread: viewtopic.php?f=15&t=37063
Further details of how updates are to be made to this portfolio can be found on this thread: viewtopic.php?f=15&t=37062
Progress Reviews to-date:
Year One: viewtopic.php?f=15&t=39744
Progress Review: 05 May 2024
Current Portfolio: Holdings
EPIC | Company | Shares | Cost (£) | Price (p) | Value (£) | Value (%) | P/L (£) | Ex Div (£) | Div Rec'd (£) | Total (£) | Y'ld (%) [1] | Yr Div (£) | Yr Div (%)
KGF | Kingfisher PLC | 3,618 | 10,000.11 | 248.7000 | 8,997.97 | 4.66% | -1,002.14 | 0.00 | 448.62 | -553.52 | 4.99% | 448.62 | 3.94%
SBRY | J Sainsbury | 1,929 | 5,000.03 | 265.4000 | 5,119.57 | 2.65% | 119.54 | 0.00 | 252.69 | 372.23 | 4.94% | 252.69 | 2.22%
TSCO | Tesco | 2,010 | 4,999.47 | 298.3000 | 5,995.83 | 3.10% | 996.36 | 0.00 | 219.08 | 1,215.44 | 4.06% | 243.20 | 2.14%
BATS | British American Tobacco | 163 | 4,989.11 | 2,355.0000 | 3,838.65 | 1.99% | -1,150.46 | 0.00 | 472.29 | -678.17 | 10.00% | 383.88 | 3.37%
IMB | Imperial Brands | 247 | 4,995.70 | 1,826.0000 | 4,510.22 | 2.34% | -485.48 | 0.00 | 484.44 | -1.04 | 8.04% | 362.62 | 3.19%
BT-A | BT Grp | 3,858 | 5,000.21 | 105.1000 | 4,054.76 | 2.10% | -945.45 | 0.00 | 297.05 | -648.40 | 7.33% | 297.05 | 2.61%
VOD | Vodafone Grp | 5,314 | 5,000.18 | 68.4400 | 3,636.90 | 1.88% | -1,363.28 | 0.00 | 409.64 | -953.64 | 11.29% | 410.48 | 3.61%
ITV | ITV | 12,139 | 10,000.28 | 72.0000 | 8,740.08 | 4.53% | -1,260.20 | 400.58 | 606.94 | -252.68 | 6.94% | 606.94 | 5.34%
HSBA | HSBC Holdings | 831 | 4,998.75 | 705.5000 | 5,862.71 | 3.04% | 863.96 | 0.00 | 418.94 | 1,282.90 | 4.52% | 264.96 | 2.33%
LLOY | Lloyds Banking Grp | 9,453 | 5,000.06 | 52.1800 | 4,932.58 | 2.55% | -67.48 | 173.93 | 238.20 | 344.65 | 5.29% | 260.89 | 2.29%
ABDN | Abrdn PLC | 2,368 | 5,000.48 | 155.2000 | 3,675.14 | 1.90% | -1,325.34 | 0.00 | 518.58 | -806.76 | 9.41% | 345.72 | 3.04%
MNG | M & G PLC | 2,399 | 5,000.71 | 200.4000 | 4,807.60 | 2.49% | -193.11 | 316.66 | 477.39 | 600.94 | 9.83% | 472.59 | 4.15%
IGG | IG Grp Holdings | 1,258 | 9,997.84 | 769.5000 | 9,680.31 | 5.01% | -317.53 | 0.00 | 739.19 | 421.66 | 5.91% | 572.38 | 5.03%
AV | Aviva | 729 | 3,331.03 | 472.0000 | 3,440.88 | 1.78% | 109.85 | 162.56 | 231.81 | 504.22 | 7.08% | 243.47 | 2.14%
LGEN | Legal & General Grp | 1,294 | 3,332.00 | 240.9000 | 3,117.25 | 1.61% | -214.75 | 189.31 | 254.13 | 228.69 | 8.44% | 263.19 | 2.31%
PHNX | Phoenix Grp Holdings | 520 | 3,334.08 | 519.5000 | 2,701.40 | 1.40% | -632.68 | 138.58 | 270.40 | -223.70 | 10.13% | 273.78 | 2.41%
ADM | Admiral Grp | 453 | 10,007.57 | 2,702.0000 | 12,240.06 | 6.34% | 2,232.49 | 0.00 | 466.58 | 2,699.07 | 3.81% | 466.59 | 4.10%
GSK | GSK PLC | 702 | 10,005.62 | 1,733.5000 | 12,169.17 | 6.30% | 2,163.55 | 0.00 | 503.68 | 2,667.23 | 3.46% | 421.20 | 3.70%
SMDS | DS Smith | 2,818 | 9,998.74 | 361.6000 | 10,189.89 | 5.28% | 191.15 | 0.00 | 507.24 | 698.39 | 4.98% | 507.24 | 4.46%
BDEV | Barratt Developments | 1,081 | 4,997.85 | 478.7000 | 5,174.75 | 2.68% | 176.90 | 47.56 | 364.29 | 588.75 | 5.83% | 301.59 | 2.65%
TW | Taylor Wimpey | 4,238 | 4,999.59 | 139.2000 | 5,899.30 | 3.05% | 899.71 | 203.00 | 405.57 | 1,508.28 | 6.88% | 406.00 | 3.57%
BLND | British Land Company | 1,128 | 5,001.94 | 403.6000 | 4,552.61 | 2.36% | -449.33 | 0.00 | 261.69 | -187.64 | 5.75% | 261.69 | 2.30%
LAND | Land Securities Grp | 705 | 5,003.99 | 667.0000 | 4,702.35 | 2.44% | -301.64 | 0.00 | 341.92 | 40.28 | 5.92% | 278.47 | 2.45%
BHP | BHP Grp | 178 | 5,016.87 | 2,241.0000 | 3,988.98 | 2.07% | -1,027.89 | 0.00 | 346.64 | -681.25 | 5.41% | 215.68 | 1.90%
RIO | Rio Tinto | 79 | 5,011.84 | 5,467.0000 | 4,318.93 | 2.24% | -692.91 | 0.00 | 416.14 | -276.77 | 6.25% | 269.72 | 2.37%
HBR | Harbour Energy PLC | 1,584 | 5,000.62 | 281.8000 | 4,463.71 | 2.31% | -536.91 | 164.15 | 305.37 | -67.39 | 7.07% | 315.68 | 2.78%
WDS | Woodside Energy Grp Ltd | 239 | 4,990.71 | 1,424.0000 | 3,403.36 | 1.76% | -1,587.35 | 0.00 | 552.52 | -1,034.83 | 7.84% | 266.73 | 2.34%
SSE | SSE | 574 | 9,992.69 | 1,709.5000 | 9,812.53 | 5.08% | -180.16 | 0.00 | 503.39 | 323.23 | 3.51% | 344.40 | 3.03%
NG | National Grid | 966 | 9,996.45 | 1,074.0000 | 10,374.84 | 5.37% | 378.39 | 0.00 | 550.61 | 929.00 | 5.31% | 550.61 | 4.84%
TRIG | The Renewables Infrastructure Grp | 3,817 | 4,999.31 | 99.5000 | 3,797.92 | 1.97% | -1,201.39 | 0.00 | 339.31 | -862.08 | 7.22% | 274.04 | 2.41%
UKW | Greencoat UK Wind | 3,121 | 4,999.52 | 143.6000 | 4,481.76 | 2.32% | -517.76 | 0.00 | 372.30 | -145.46 | 7.40% | 331.43 | 2.91%
PNN | Pennon Grp | 532 | 4,995.65 | 698.5000 | 3,716.02 | 1.92% | -1,279.63 | 0.00 | 233.06 | -1,046.57 | 6.59% | 244.93 | 2.15%
UU | United Utilities Grp | 461 | 5,000.90 | 1,073.0000 | 4,946.53 | 2.56% | -54.37 | 0.00 | 216.33 | 161.96 | 4.37% | 216.33 | 1.90%
| | | | | | | | | | | | |
| Sub Total: | | | | £191,344.56 | 99.07% | -£8,655.34 | £1,796.33 | | | 5.94% | £11,374.79 |
| Cash Balance: | | | | £0.00 | 0.00% | | | | | 1.98% | |
| Ex Dividend: | | | | £1,796.33 | 0.93% | | | | | | |
| | | | | | | | | | | | |
| Current Value: | | | | £193,140.89 | | | | | | | |
| From: | | | | | | | | | | | |
| Cash In: | | | | £199,999.90 | | | | | | | |
| LESS Cash Out: | | | | -£13,165.80 | | | | | | | |
| Div'd Rec'd: | | | | £13,165.80 | | | | | | | |
| Ex Dividend: | | | | £1,796.33 | | | | | | | |
| Realised P/L: | [2] | | | £0.00 | | | | | | | |
| UnRealised P/L: | | | | -£8,655.34 | | | | | | | |
| | | | | | XIRR | | | | | | |
| Total: | | | | £193,140.89 | 2.58% | | | | | | |
Current Portfolio: Business Sectors
Business Sector | Cost (£) | Value (£) | Value (%) | P/L (£) | Ex Div (£) | Div Rec'd (£) | Total (£) | Y'ld (%) [1] | Yr Div (£) | Yr Div (%)
Insurance: NonLife | 10,007.57 | 12,240.06 | 6.34% | 2,232.49 | 0.00 | 466.58 | 2,699.07 | 3.81% | 466.59 | 4.10%
Pharma | 10,005.62 | 12,169.17 | 6.30% | 2,163.55 | 0.00 | 503.68 | 2,667.23 | 3.46% | 421.20 | 3.70%
Retail: Supermarkets | 9,999.50 | 11,115.40 | 5.76% | 1,115.90 | 0.00 | 471.77 | 1,587.67 | 4.46% | 495.89 | 4.36%
House Builder | 9,997.44 | 11,074.05 | 5.73% | 1,076.61 | 250.56 | 769.86 | 2,097.03 | 6.39% | 707.59 | 6.22%
Banks | 9,998.81 | 10,795.29 | 5.59% | 796.48 | 173.93 | 657.14 | 1,627.55 | 4.87% | 525.85 | 4.62%
Utility: Infra. | 9,996.45 | 10,374.84 | 5.37% | 378.39 | 0.00 | 550.61 | 929.00 | 5.31% | 550.61 | 4.84%
Packaging | 9,998.74 | 10,189.89 | 5.28% | 191.15 | 0.00 | 507.24 | 698.39 | 4.98% | 507.24 | 4.46%
Utility: Electricity | 9,992.69 | 9,812.53 | 5.08% | -180.16 | 0.00 | 503.39 | 323.23 | 3.51% | 344.40 | 3.03%
Gambling | 9,997.84 | 9,680.31 | 5.01% | -317.53 | 0.00 | 739.19 | 421.66 | 5.91% | 572.38 | 5.03%
Insurance: Life | 9,997.11 | 9,259.53 | 4.79% | -737.58 | 490.45 | 756.34 | 509.21 | 8.43% | 780.44 | 6.86%
Real Estate IT | 10,005.93 | 9,254.96 | 4.79% | -750.97 | 0.00 | 603.61 | -147.36 | 5.84% | 540.16 | 4.75%
Retail: Sales | 10,000.11 | 8,997.97 | 4.66% | -1,002.14 | 0.00 | 448.62 | -553.52 | 4.99% | 448.62 | 3.94%
Television | 10,000.28 | 8,740.08 | 4.53% | -1,260.20 | 400.58 | 606.94 | -252.68 | 6.94% | 606.94 | 5.34%
Utility: Water | 9,996.55 | 8,662.55 | 4.49% | -1,334.00 | 0.00 | 449.39 | -884.61 | 5.32% | 461.26 | 4.06%
Fund Manager | 10,001.19 | 8,482.74 | 4.39% | -1,518.45 | 316.66 | 995.97 | -205.82 | 9.65% | 818.31 | 7.19%
Tobacco | 9,984.81 | 8,348.87 | 4.32% | -1,635.94 | 0.00 | 956.73 | -679.21 | 8.94% | 746.50 | 6.56%
Mining | 10,028.71 | 8,307.91 | 4.30% | -1,720.80 | 0.00 | 762.78 | -958.02 | 5.84% | 485.40 | 4.27%
Utility: Renew. | 9,998.83 | 8,279.68 | 4.29% | -1,719.15 | 0.00 | 711.61 | -1,007.54 | 7.31% | 605.47 | 5.32%
Oil | 9,991.33 | 7,867.07 | 4.07% | -2,124.26 | 164.15 | 857.89 | -1,102.22 | 7.40% | 582.41 | 5.12%
Telecom | 10,000.39 | 7,691.66 | 3.98% | -2,308.73 | 0.00 | 706.69 | -1,602.04 | 9.20% | 707.53 | 6.22%
[1] - Yield and Forecast Income are based on my own Share Database Spreadsheet and are essentially calculated from the dividends that would have been earned over the previous 12 months, unless the company itself has clearly indicated otherwise.
[2] - Realised Profit and Loss & Return of Capital – To Date
None
Portfolio Transactions: Year One
None
Quarterly Portfolio Income: Withdrawn To-Date
Year Start | 05 Jul | 05 Oct | 05 Jan | 05 Apr | Total | Year End
06-Apr-22 | 0.00 | 0.00 | 0.00 | 836.93 | £836.93 | 05-Apr-23
06-Apr-23 | 3,477.35 | 3,424.47 | 2,818.58 | 1,794.47 | £11,514.87 | 05-Apr-24
06-Apr-24 | 814.00 | 0.00 | 0.00 | 0.00 | £814.00 | 05-Apr-25
Portfolio Income: 12 Month Forecast
Amounts forecast to be withdrawn over the next 12 Months:
[pre]Date | Income (£)
05-Jun-24 | 1,685.04
05-Jul-24 | 1,089.89
05-Aug-24 | 932.96
05-Sep-24 | 611.47
04-Oct-24 | 2,047.55
05-Nov-24 | 1,299.76
05-Dec-24 | 692.56
03-Jan-25 | 539.99
05-Feb-25 | 928.57
05-Mar-25 | 277.63
04-Apr-25 | 602.46
02-May-25 | 666.90
|
12 Months | £11,374.78
Average | £947.90
Portfolio Income: Comments
A further £10,707.88 is currently forecast to be withdrawn during this current financial year – to 05 April 2025 – making the current forecast for the Year Two Income of £11,521.88. This will represent an further income return of 5.76% on the amount invested, currently almost identical to the Year One full year return: £11,514.87 – 5.76%.
Portfolio Value: To Date
The value of the portfolio has been recorded at the end of each quarter as follows:
Year Start | 05 Jul | 05 Oct | 05 Jan | 05 Apr | Year End
06-Apr-22 | | | | 191,997.71 | 05-Apr-23
06-Apr-23 | 177,699.80 | 173,308.53 | 192,859.28 | 189,431.56 | 05-Apr-24
Portfolio Value: Comments
As I stated previously, from a Capital Value point of view, I appear to have set up this portfolio at just the wrong time. Picking the 30 Jan 2023 as the day for the purchasing of the shares, was to select the top of the market, almost precisely!
However, it has been barely fifteen months since the set-up of this portfolio. This data will continue to be reported but of course, as a High Yield Portfolio (HYP) in drawdown, the Capital Value is very much of secondary interest.
Portfolio Type: Tinkering version
This “virtual” portfolio is of course of the simple Buy & Hold, Income Drawdown type, with the only further transactions being those forced by corporate actions whereby capital is returned to the portfolio as cash.
However, it is my intention to set up a sibling “virtual” portfolio which will be of the more complex Buy & Tinker, Income Drawdown type. The set up of this sibling portfolio will occur when and if, at the end of any quarter:
1. If the Income Concentration from any Business Sector is at or above 15% of the Total Portfolio Income, a decision will be taken as to whether one third of the holdings should be sold. The idea being that, if a disposal is thought necessary, the Income Concentration for the affected Business Sector should be reduced to no more than 10%
2. If the Yield of any holding falls below one third of the yield for the portfolio as a whole, a decision will be taken as to whether the holding should be sold in its entirety.
The proceeds of any such sale will be re-invested, in accordance with the normal selection procedure for the portfolio – Highest Sustainable Yield – such that the Income Concentration for the Business Sector of the holding selected, is not greater than 10% of the Total Portfolio Income.
To be honest, I am still mulling over exactly what such “too high” levels should be. Indeed, I may only make such a decision when and if it appears obvious to me that a Buy & Tinker portfolio would require such action being taken. Any recommendations or advice received in this regard, will be fully reviewed, although the final decision will be mine.
At the moment, there does not appear to be any reason to make any change to the Buy & Tinker version of this portfolio, which will therefore remain unchanged.
Next Actions Required
1. - HSBA – HSBC PLC: Special Dividend
Although I recognise such a payment as a Return of Capital (RoC), the total amount due of around £140.00 is too small to be re-invested and will be taken as income.
2. - SMDS – DS Smith PLC: All-Share Takeover
New York based International Paper Company (IP) has proposed an all-share takeover of SMDS. As I understand it SMDS shareholders will receive 0.1285 shares of IP for each SMDS share held, giving this portfolio an IP holding of 362 shares, plus a small residue. It is intended that IP will have a secondary listing in London, so this holding will be maintained going forward.
Next Progress Review: End of Quarter One
A report on the continuing progress of the portfolio will be produced on, or soon after, the 05 July 2024
Should anyone wish to comment on this review, or any actions taken in the management of this virtual HYP Portfolio, then please do so but only on this related thread: viewtopic.php?f=15&t=43324
The intention is to keep this thread simply recording the events and progress of the Portfolio during its first year.
Enjoy!
Ian