The Lemon Fool

SDN’s HYP Report – Jan 2024 - Part 1
Hi Everyone,

This is my ninth annual HYP report, the first was on TMF, the others are on TLF as follows:
2023: viewtopic.php?p=559598#p559598
2022: viewtopic.php?p=469569#p469569
2021: viewtopic.php?t=27112#p372392
2020: viewtopic.php?p=274473#p274473
2019: viewtopic.php?p=190315#p190315
2018: viewtopic.php?p=112355#p112355
2017: viewtopic.php?p=19917#p19917

The first part of this report attempts to stick to information that is more factual. The second part contains more subjective commentary and opinions.

Context

See 2021 report for details, the main points being...

- I started the HYP in March 2012
- This an "experiment" as I save for my retirement.
- This HYP remains part of an overall stocks and shares portfolio.
- I decided early in 2020 that my HYP had grown into a relatively mature portfolio and therefore I won't add any significant new money – any new funds for UK based High Yield tend to go to my “new” IT portfolio (started in April 2020).

Portfolio @ 1/01/23

Shares


Sectors


Super Sectors


Activity in the last twelve months:

- New purchases (ignoring corporate actions – see below): 0
- Sales: 0:
- Insolvencies: None
- Top-ups: 0
- Corporate actions (ignoring name changes): 0
- Specials (ignoring Admiral’s “normal specials”): 0

Annual:


Others stats:
The figure in parentheses are the year-on-year change



Performance as at 01/01/24

- The unit value did poorly in nominal terms, down 1.1% and compared to the FTSE-All Share (up 3.9%) and RPI (up 5.3%).

- The dividend per unit also dropped, primarily due to the lack of specials in 2023. That said it was still ahead of pre-COVID levels.

- The historical yield over the last year 5.4% compared to the HYPTUSS forecast of 5.35% 12 months ago. I’d say that was a pretty good prediction!

- The current forecast yield, according to HYPTUSS, is 5.26%, another drop.

- The TR of my HYP was +4.3% (+5.2% in 2023). The TR of my overall portfolio, including the HYP, was 10.0% (+7.3% in 2022). For comparison the TR of the FTSE-AS was +7.9% (+12.3% in 2022).

SDN
Jan 2024

If I may, what's happening with the funds received from the HYP .. are these being used for purchase of ITs, withdrawn or just being held in the account?

(you mention "new funds" but is that a combination of new funds + dividends?)

Hi,

Yes, new funds include both dividends (including HYP dividends) and new money.

None of these new funds are going into HYP at this time due to my personal circumstances - in short I live outside the UK and plan to return in the next year or so. The various CGT rules here and in the UK make it much simpler (in terms of accurate reporting) and cheaper (in terms of what I’ll need to liquidate when I move) to plough new funds into simple index trackers for now. FYI my non-HYP investments are a small IT income portfolio (also “parked” for now) and a larger passive index tracker portfolio (ETFs and open ended funds).

Hope that helps.