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What next? - UK biased and wanting to expand globally

General discussions about equity high-yield income strategies
zharrt
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Joined: April 15th, 2019, 7:04 pm

What next? - UK biased and wanting to expand globally

#215257

Postby zharrt » April 15th, 2019, 7:26 pm



Capital Yield per year based on the money I have actually out in out of my pocket, Value based on the value of the portfolio at the time.


*Forecast based on dividends declared already but not paid

Ok, a bit of background,

  • I calculate yield based on breakeven price of the shares, this might not be the best way to do it but it one that make sense to me
  • All dividends are reinvested unless I am overweight based on a arbitrary calculation to keep the spread of shares evenly split across the portfolio
  • I do not sell shares, if I take a hit on the share price so be it, I am in for the long term (it's a SIPP and I don't retire for 20 years) and prices usually rebound over the longer term, if I sell at a loss I will never get the moment back
  • If a company collapses completely I hope that I have spread my portfolio that a single company will only be ~3% of the total value
  • If a company stops paying dividends, again I will hold in the hope they will eventually start paying again

The last rule is not hard and fast, Tesco stopped paying for a while and have restarted at a pittance however over the life of the holding I am up.

So what am I asking, I don't really know!

I do know I am heavily biased towards FTSE companies, however with some companies which trade globally rather than just in the UK.

I would like to expand out of the UK to get more global exposure, and am torn between EFT's or picking some individual companies.

I am with HL so pay a maximum of £200 a year in fees if I hold only stocks and shares and holding EFT's they are not the most competitive.

Any advice/critique welcome

Spet0789
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Re: What next? - UK biased and wanting to expand globally

#215259

Postby Spet0789 » April 15th, 2019, 7:52 pm

Many of your stocks (barring retailers, utilities and property) are pretty international already. Shell, BP and GSK aren’t U.K. companies in terms of revenue generation for example.

I’d buy some VHYL if you want international income exposure. Current yield 3.5% ish. Very diversified.

TUK020
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Re: What next? - UK biased and wanting to expand globally

#215323

Postby TUK020 » April 16th, 2019, 7:49 am

zharrt wrote:I do know I am heavily biased towards FTSE companies, however with some companies which trade globally rather than just in the UK.

I would like to expand out of the UK to get more global exposure, and am torn between EFT's or picking some individual companies.

I am with HL so pay a maximum of £200 a year in fees if I hold only stocks and shares and holding EFT's they are not the most competitive.

Any advice/critique welcome


In a similar position, in that >80% of my portfolio is UK listed companies, albeit most with an international trading footprint.

The way in which I am embracing more geographic diversity is to use Investment Trusts, currently the main ones being MYI Murray International, and HFEL, Henderson Far East. Dithering over what to add for a European focus.
Also use the L&G Global 100 ETF

seagles
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Re: What next? - UK biased and wanting to expand globally

#215328

Postby seagles » April 16th, 2019, 8:17 am

TUK020 wrote:
zharrt wrote:I do know I am heavily biased towards FTSE companies, however with some companies which trade globally rather than just in the UK.

I would like to expand out of the UK to get more global exposure, and am torn between EFT's or picking some individual companies.

I am with HL so pay a maximum of £200 a year in fees if I hold only stocks and shares and holding EFT's they are not the most competitive.

Any advice/critique welcome


In a similar position, in that >80% of my portfolio is UK listed companies, albeit most with an international trading footprint.

The way in which I am embracing more geographic diversity is to use Investment Trusts, currently the main ones being MYI Murray International, and HFEL, Henderson Far East. Dithering over what to add for a European focus.
Also use the L&G Global 100 ETF


I have gone the same way. Have HFEL and MYI. Have gone for JETI in Europe and MCT for Nth American.

daveh
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Re: What next? - UK biased and wanting to expand globally

#215391

Postby daveh » April 16th, 2019, 12:44 pm

seagles wrote:
TUK020 wrote:
zharrt wrote:I do know I am heavily biased towards FTSE companies, however with some companies which trade globally rather than just in the UK.

I would like to expand out of the UK to get more global exposure, and am torn between EFT's or picking some individual companies.

I am with HL so pay a maximum of £200 a year in fees if I hold only stocks and shares and holding EFT's they are not the most competitive.

Any advice/critique welcome


In a similar position, in that >80% of my portfolio is UK listed companies, albeit most with an international trading footprint.

The way in which I am embracing more geographic diversity is to use Investment Trusts, currently the main ones being MYI Murray International, and HFEL, Henderson Far East. Dithering over what to add for a European focus.
Also use the L&G Global 100 ETF


I have gone the same way. Have HFEL and MYI. Have gone for JETI in Europe and MCT for Nth American.


I've gone down the ETF route and have IAPD, IDVY and EMDV which are high yield ETFs for asia/pacific, europe, and emerging markets respectively. I'm happy with the first two, not so with the latter as its dividend has been falling. I'd be interested if anyone had a better collective (ETF or IT) for emerging markets that has a decent yield where the dividend has been more reliable.


The area I'm missing is North America, I've looked at a couple of high yield ETFs for the region, but theyve not been particularly high yield. I've also thought about VHYL which has a large North American component, but its performance against VWRL is poor (5 year performance from the FTSE site VWRL 62% VHYL 32% FTSE all-share 15%), but the latter is of course not HY.

tramrider
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Re: What next? - UK biased and wanting to expand globally

#215446

Postby tramrider » April 16th, 2019, 3:53 pm

daveh wrote:The area I'm missing is North America, I've looked at a couple of high yield ETFs for the region, but theyve not been particularly high yield. I've also thought about VHYL which has a large North American component, but its performance against VWRL is poor (5 year performance from the FTSE site VWRL 62% VHYL 32% FTSE all-share 15%), but the latter is of course not HY.


For North America, as well as MCT Middlefield Canadian Income Trusts, mentioned above, you could investigate BRNA BlackRock North American Income, which I hold. The yield is currently 4.5% with quite good growth over the last 5 'fat' years but a premium of 2.9% at present. The 5 year performance is 103%. I have it in my SIPP to help with paying my monthly pension. :)

https://www.theaic.co.uk/companydata/C912N

Tramrider


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