Arbit, HYP and OEICs 2022 Q3

[Arborbridge]

Update for third quarter of the capital value of the "Three Streams":-



The lower two lines are my HYP and the FTSE100. The upper two lines tied in a tussle are my income IT (nicknamed ArbIT) and income OEICS. Liz Truss seems to have caused a lot of damage lately, but I expect we will survive.

I shall update the income side just as soon as I have entered everything for the month end.

PS I rather fancy whatever that company is with the ticker RPI
Arb.

[Dod101]

Very good Arb. I must say I would rather not have looked at my portfolio value this morning but my income is on track to be very good this year, unless all the upheavals this week cause problems for dividends.

Dod

[Newroad]

Hi Arb.

To mitigate the risk of boring others, I won't post my end of month data again, but you can find it below

https://www.lemonfool.co.uk/viewtopic.php?f=56&t=35186&start=40#p533797

I bit like your HYP, my UK pseudo-HYP has suffered significantly. The Global 60-40'ish ones, less so.

Regards, Newroad

[Arborbridge]

Very good Arb. I must say I would rather not have looked at my portfolio value this morning but my income is on track to be very good this year, unless all the upheavals this week cause problems for dividends.

Dod

I have, through years of practice, become sanguine about these big market changes. Not complacent, but distance from the event puts them in perspective, I find, with the result that one can have more confidence in the future. I haven't achieved the perfect Zen attitude yet, by any means, but HYP certainly taught me not to fret too much because the income keeps rolling most of the time, and capital values recover. Who really cares what they are unless selling out?

On the income side, I've just had my biggest 5 month average* take and for the 12 months together the income is far higher than I need.


*why do I use a 5 month moving average? It was just a weird thing - it just seemed less obvious than 6 or 12 months! I think I was hoping to avoid the idea of resonance in the dividends periods, but one gets a 5month period instead, naturally.

[Arborbridge]

Hi Arb.

To mitigate the risk of boring others, I won't post my end of month data again, but you can find it below

https://www.lemonfool.co.uk/viewtopic.php?f=56&t=35186&start=40#p533797

I bit like your HYP, my UK pseudo-HYP has suffered significantly. The Global 60-40'ish ones, less so.

Regards, Newroad

I generally do something to report quarterly or half yearly, depending what is going on in life.

If you do the same, then more the merrier, but could you start a new thread devoted to your so we don't get too intertwined.

Arb.

[Itsallaguess]

On the income side, I've just had my biggest 5 month average* take and for the 12 months together the income is far higher than I need.

*why do I use a 5 month moving average? It was just a weird thing - it just seemed less obvious than 6 or 12 months! I think I was hoping to avoid the idea of resonance in the dividends periods, but one gets a 5month period instead, naturally.

Interesting chart update, as always Arb, and I'll look forward to you releasing the income-chart soon, hopefully, once you've managed to incorporate your latest monthly figures.

On the point above, I track three portfolio income metrics - a pure-month income figure, a rolling 12-month figure and also a separate calendar-year income figure.

I'm not too sure how useful the first two figures are for me to be honest, as they are often skewed by payment-dates floating around on the edges of particular months, and I imagine such an issue might also affect your 5-month period as well. Generally though, it's nice to see things floating upwards through each year as the data is gathered, and it's a very quick and simple process now things are set up, so it's no hassle and helps provide some useful legacy data over the years...

The most important figure for me, as someone currently still working but with a squinting eye on what funding a post-work life might look like, is the calendar-year income figure, which helps to provide me with both a level of robustness on the 'ball-park dividend wage' figure, as well as tracking what he hope to be any general rises due to underlying dividend increases and also fresh income from any additional in-year investment.

Thanks again for maintaining these multi-stream charts. Possibly one of the most interesting data-sets we've got available for those of us interested in income-investment on these boards, in my view...

Cheers,

Itsallaguess

[kempiejon]

That's a handy data snapshot Arb, thanks for sharing. My own record keeping is nothing so detailed nor robust. Evidotally my monthly income for September was the largest single month figure since my records began. I've not added new money to my HYP for 2 or 3 years but I am rolling dividends into income assets. I also see my rolling 12 months is back to within a gnats whisker of pre Covid levels, which is when I was last setting income records.

[Newroad]

Hi Arb.

The point was to compare and contrast, but if you only want yours discussed with no comparison, then will oblige - will not contribute in the future unless it is pertinent to the performance of yours alone.

Regards, Newroad

[daveh]

Looking at my Income Portfolio, it was looking pretty good up until the eejits in charge in Westminster made their not so mini budget. Up until then the capital value was not far off it's maximum which was earlier this year, though it had been falling gently from the peak. After the fallout from the budget it's lost about 10% in just a few days. Income wise it's doing fine; income up about 10% on the whole of last year and predicted to be up by about 20% at the end of the year. It will be interesting to see if we income holds up next year. In previous crashes income fell the year after falls in capital value.

[Arborbridge]

Three streams for income, Q3 update as follows:-



The three streams are my HYP, a basket of income ITs (Arbit) and a basket of income funds (ArbOEICs).

Each point is the sum of the previous year's income produced by buying £100 in each portfolio at the outset. Actually, the income is more strictly the addition of the previous four quarters, each quarter being separately calculated.

The outstanding performance this time has been turned in by the OEICs which have continued to recover quite rapidly. The disappointment was the HYP because, whereas I feel my total income has been coming on quite well, the HYP income has actually taken a slight dip. I've been wondering if this is really true, or have I made a mistake? However, I've done a sanity check by adding up the total real income for each period (i.e. 12 months to June, then 12 months to September) and alas, it really has dipped by a similar percentage - the difference being accounted for by an increase in the number of units in the HYP - that is, a small increase in capital invested.

In practical terms, my pension scheme keeps working as it has for 12 years now and now we look forward to seeing how it manages in the upcoming choppy waters. I also look forward to a smooth run to the end of the year when I will report in more detail as usual on the HYP practical board.

Arb.

[OhNoNotimAgain]

The outstanding performance this time has been turned in by the OEICs which have continued to recover quite rapidly.
Arb.

Which ones?

[Arborbridge]

The outstanding performance this time has been turned in by the OEICs which have continued to recover quite rapidly.
Arb.

Which ones?

Here are the components of the OEIC basket:-



They are not invested in equal measure and I have topped up generally according to a combination of yield and TR performance over the years.

Arb.

[OhNoNotimAgain]

The outstanding performance this time has been turned in by the OEICs which have continued to recover quite rapidly.
Arb.

Which ones?

Here are the components of the OEIC basket:-



They are not invested in equal measure and I have topped up generally according to a combination of yield and TR performance over the years.

Arb.

Oh dear.

[Arborbridge]

The outstanding performance this time has been turned in by the OEICs which have continued to recover quite rapidly.
Arb.

Which ones?

Here are the components of the OEIC basket:-



They are not invested in equal measure and I have topped up generally according to a combination of yield and TR performance over the years.

Arb.

Oh dear.

Then suggest better? The Oh dearness factor must be tempered by the knowledge that this basket has performed well compared with the ITs. So, they would be oh dear on no!

[OhNoNotimAgain]

The outstanding performance this time has been turned in by the OEICs which have continued to recover quite rapidly.
Arb.

Which ones?

Here are the components of the OEIC basket:-



They are not invested in equal measure and I have topped up generally according to a combination of yield and TR performance over the years.

Arb.

Oh dear.

Then suggest better? The Oh dearness factor must be tempered by the knowledge that this basket has performed well compared with the ITs. So, they would be oh dear on no!

I have never understood the appeal of ITs

[OhNoNotimAgain]

Update for third quarter of the capital value of the "Three Streams":-



The lower two lines are my HYP and the FTSE100. The upper two lines tied in a tussle are my income IT (nicknamed ArbIT) and income OEICS. Liz Truss seems to have caused a lot of damage lately, but I expect we will survive.

I shall update the income side just as soon as I have entered everything for the month end.

PS I rather fancy whatever that company is with the ticker RPI
Arb.

You should also review the UK All Companies Sector for Income.

[Arborbridge]

You should also review the UK All Companies Sector for Income.

I've long held Mercantile, which is currently the only decent yield in that sector - around 3.79%. THere is an argument that once I have enough income (which begs the question, who wouldn't like more income?) it's quite acceptable to go "down yield".

There might be a case for Fidelity Special Values in addition to, or instead of FGT, though in recent years I've favoured bigger holdings as opposed to splitting my effort into a myriad of funds. I still probably have too many for some here.

Arb.

[OhNoNotimAgain]

You should also review the UK All Companies Sector for Income.

I've long held Mercantile, which is currently the only decent yield in that sector - around 3.79%. THere is an argument that once I have enough income (which begs the question, who wouldn't like more income?) it's quite acceptable to go "down yield".

There might be a case for Fidelity Special Values in addition to, or instead of FGT, though in recent years I've favoured bigger holdings as opposed to splitting my effort into a myriad of funds. I still probably have too many for some here.

Arb.

OEICS not ITs

[Arborbridge]

You should also review the UK All Companies Sector for Income.

I've long held Mercantile, which is currently the only decent yield in that sector - around 3.79%. THere is an argument that once I have enough income (which begs the question, who wouldn't like more income?) it's quite acceptable to go "down yield".

There might be a case for Fidelity Special Values in addition to, or instead of FGT, though in recent years I've favoured bigger holdings as opposed to splitting my effort into a myriad of funds. I still probably have too many for some here.

Arb.

OEICS not ITs

OK. Any particular reason? I saw your earlier comment, but what is behind it?
BTW, if I were to take up your suggestion, it would entail selling out of one of the current OEICS and substituting the new one - so one would have to make the case that the replacement was better. There's no unallocated cash pool in that account to buy an extra holding.

Arb,

[kempiejon]

I've long held Mercantile, which is currently the only decent yield in that sector - around 3.79%. THere is an argument that once I have enough income (which begs the question, who wouldn't like more income?) it's quite acceptable to go "down yield".

There might be a case for Fidelity Special Values in addition to, or instead of FGT, though in recent years I've favoured bigger holdings as opposed to splitting my effort into a myriad of funds. I still probably have too many for some here.

Arb.

I've had a think about what to do when the income stream is enough and yeah we could always have a bit more for safety or extravagance.
I've kept the records and I know how much it costs me to have the lifestyle I want. The yield on my investment is that cost plus a small surplus and I can harvest capital gain too when tax planning. As I'm still saving/investing (before I lose that daily grind income) some new money is going towards a global accumulating tracker moving down the yield to zero.