Rebalancing a neglected HYP

[Dod101]

Any comments or suggestions are welcome.

Post your question in the other place, and you might find some more radical answers.

The gist of one being, for example, sell everything and buy a single high yield unmentionable (higher than your current portfolio overall). The problems of diversification, selection and ongoing management raised here evaporate away.

It depends what you want really. If you want a hobby, stay here. If you want income, ask over there.

I have no idea what this unmentionable place is and this sort of enigmatic post is not really much help to anyone, well not to me anyway. Presumably the reference is to a tracker of some sort.

Dod

[tjh290633]

Post your question in the other place, and you might find some more radical answers.

The gist of one being, for example, sell everything and buy a single high yield unmentionable (higher than your current portfolio overall). The problems of diversification, selection and ongoing management raised here evaporate away.

It depends what you want really. If you want a hobby, stay here. If you want income, ask over there.

I have no idea what this unmentionable place is and this sort of enigmatic post is not really much help to anyone, well not to me anyway. Presumably the reference is to a tracker of some sort.

Dod

He means the other HY board, where discussion of funds, ITs and other media off topic on this board is permitted.

Not hard to decode.

TJH

[IanTHughes]

Any comments or suggestions are welcome.

Post your question in the other place, and you might find some more radical answers.

The gist of one being, for example, sell everything and buy a single high yield unmentionable (higher than your current portfolio overall). The problems of diversification, selection and ongoing management raised here evaporate away.

It depends what you want really. If you want a hobby, stay here. If you want income, ask over there.

”My hobby” provides a higher income than would otherwise be achieved by relying on others. Mind you I have to admit, it is not that difficult. In fact, I would be rather disappointed if ”my hobby” produced inferior results.

It appears to me that you are inferring that, not that difficult or not, ”your hobby” falls short and produces a lower income than would otherwise be achieved by relying on others. If that is so, I entirely agree. Indeed, no-one should rely on the inferior results produced by ”your hobby”. I certainly would not rely on the inferior results produced by ”your hobby”, and I fully understand that you do not!

Enjoy!


Ian

[Dod101]

I have no idea what this unmentionable place is and this sort of enigmatic post is not really much help to anyone, well not to me anyway. Presumably the reference is to a tracker of some sort.

Dod

He means the other HY board, where discussion of funds, ITs and other media off topic on this board is permitted.

Not hard to decode.

TJH

Oh I see. As a non HYPer I must say I feel that the High Yield Strategies Board is altogether much better. Unmentionable here, completely silly I think but never mind.

Dod

[csearle]

You oversimplify I feel. I did that with a load of cash waiting to get it sheltered and I've lost about 18% in capital whilst getting that income.

Now we're in the new tax year I have to sell it at a loss to release the funds. All the while my sheltered HYP has outperformed.

That sounds unfortunate Chris.

Just for clarity - any chance of a list of EPIC's that were related to those types of large capital losses?

Cheers,

Itsallaguess

Very short list: HINT.

[Itsallaguess]

Just for clarity - any chance of a list of EPIC's that were related to those types of large capital losses?

Very short list: HINT.

Thanks Chris - I own a good chunk of HINT myself, and wouldn't have considered it to have been such a volatile holding for you, and I'm still struggling to see any major catastrophe, outside of the usual COVID-related drop in early 2020, when looking at the following links for it -

https://www.google.com/finance/quote/HINT:LON?window=MAX

https://www.theaic.co.uk/companydata/henderson-international-income/performance

What period was it where you experienced your 18% capital loss with it?

Cheers,

Itsallaguess

[csearle]

Very short list: HINT.

Thanks Chris - I own a good chunk of HINT myself, and wouldn't have considered it to have been such a volatile holding for you, and I'm still struggling to see any major catastrophe, outside of the usual COVID-related drop in early 2020, when looking at the following links for it -

https://www.google.com/finance/quote/HINT:LON?window=MAX

https://www.theaic.co.uk/companydata/henderson-international-income/performance

What period was it where you experienced your 18% capital loss with it?

Cheers, fun

Itsallaguess

I'll get back to you my friend. At the moment I'm slightly tipsy in The Duke of York. (So please bear that in mind when considering anything I may post!) C.

[pkparks]

Any comments or suggestions are welcome.

Post your question in the other place, and you might find some more radical answers.

The gist of one being, for example, sell everything and buy a single high yield unmentionable (higher than your current portfolio overall). The problems of diversification, selection and ongoing management raised here evaporate away.

It depends what you want really. If you want a hobby, stay here. If you want income, ask over there.

Perhaps I will. Thanks!

[pkparks]

An update,

So far I have sold ABDN.
Bought TW and BDEV.
Topped up BATS, LGEN and SSE.

Way back when I started out, I stuck to PYAD’s standard value of 5k per sector, either with one share or split between two. This has now grown to 15k per sector for the average holding. So my top-ups so far have brought the underweight holdings up to that amount per sector.
Still plenty of cash left for top-ups.

Sectors that are underweight:
Fund Managers - Currently hold SDR, TCAP and LIO in small values.
Real Estate REIT – I hold LAND and BLND in small values.
Retailers- Supermarket – I hold SBRY at approx. half the current sector value.
Food –ULVR which is slightly low.
Banks –HSBA which is slightly low
Renewables –UKW which is low.
Insurance – Life – I hold AV which is low.
Media – PSON at approx. half the current sector value.

I’ll leave the slightly low ones where they are for now, and top up or add new shares from the best candidates in the substantially low sectors.

Sectors that are overweight: I’m going to leave these as they are for now.
Oil and Gas
Pharmaceuticals
Beverages

This is my own and my late wife's portfolios combined. There are some shares that I would not necessarily have chosen, and I am not averse to selling some to make things easier.

Thanks,
David

[pkparks]

Actually,

Correcting my own recent update:

Sectors that are overweight by value: I’m going to leave these as they are for now.
Oil and Gas
Pharmaceuticals
Beverages
Insurance - Life - I hold AV and LGEN
Tobacco - I hold BATs and IMB

Sectors that are at average weight:
Mining
House Builders
Telecoms
Utilities - Electrics
Utilities - Water
Utilities - Infrastructure

Sectors that are underweight by value:
Fund Managers - Currently hold SDR, TCAP and LIO in small values.
Real Estate REIT – I hold LAND and BLND in small values.
Retailers- Supermarket – I hold SBRY at approx. half the current sector value.
Food –ULVR which is slightly low.
Banks –HSBA which is slightly low
Renewables –UKW which is low.
Insurance – Non Life - I hold ADM in small value.
Media – PSON at approx. half the current sector value.
Aerospace and Defence - I hold BA which is slightly low.

I’ll leave the slightly low ones where they are for now, and top up or add new shares from the best candidates in the substantially low sectors.

[tjh290633]

As you may know, I have my own way of trying to keep my portfolio reasonably balanced, see viewtopic.php?p=585297#p585297

If shares get overweight by my standards (1.5 times the median weight), then I trim them back by 25%. Originally my limit was 10% of portfolio weight, then twice the median. The tighter the limits, the more often a share will go overweight.

At the other end of the spectrum we have shares with very low yields. By this I mean lower than half of the market yield, which will vary from time to time. I have had need to realize cash during this last year and, in consequence, Marston's, Marks & Spencer and Compass bit the dust. As it happens, I was able to get more income from reinvesting the spare cash than Compass was delivering.

People talk about the dangers of getting emotionally attached to a share. Marks & Spencer was a share which came to me when my mother died in 1970, and carried a lot of sentiment harking back to last century when it was on a roll. One of my best performing shares has been IMI, bought at a very low price and which has grown so much that it has a very low yield. Despite that, I would be very reluctant to see it go.

Looking at your comments and actions so far, you would seem to be on the correct track. You have to decide your own criteria for balancing your portfolio, and the limits that you set. Good luck as you go ahead.

TJH