One year old HYP

[bjmarren]

Hi All,

My HYP is a year old today so I thought I would post its situation. As it was set up over the past year, I haven't yet received a years worth of dividends yet, but when I do I'll post again to post that area of its performance. As a bit of background, I'm a 60 year old (closer to 61) married male, who has been living in Bulgaria for the past 20 years. We're free of all debt and have property and land. We'll not be soley relaying on the dividends to provide an income as it will be one of a number of different income streams to provide an income in our dotage. It's a 15 share HYP comprised of the usual suspects. Here is the capital situation regarding the HYP. Hopefully I'll get round to producing decent tables to present such information as some point. Overall it's down 1.13%, excluding purchase costs (not that we're interested in such things of course!), but the dividends received so far have more than made up for this.

Vodafone +17.12
HSBC +17.05
William Hill +16.14
Shell B +11.15
Legal%Gen + 6.66
Rio Tinto + 5.78
Persimmon + 4.70
British Land + 0.10
Royal Mail - 0.22
SSE - 8.57
ITV -10.94
Capita -13.42
Imperial Tab -13.82
Glaxo -18.82
Greene King -29.00

Going forward, I'll probably not add to the number of shares or add any more capital but I'll reinvest the dividends for at least another year and then review the situation i.e. my employment situation, health etc. I have also bought a chunk of Henderson Far Eastern IT and will probably buy another 3 income focussed ITs to add to global diversification. The plan is to have the value of the ITs to be about 50% of the value of the HYP. I'll do this over the next year. It's interesting for me, from a investing psychological point of view, that after buying the chunk of HFEL a few weeks ago I haven't given it any more thought whereas I check my HYP share prices at least a couple of times a week.

I welcome any comments but realise that if its IT related, perhaps it should go on the Strategy Board which I often lurk at, as well as here.

Cheers!

Brendan

[Wizard]

Well down for dodging Carillion and Provident Financial!

Terry.

[eyeball08]

It's interesting for me, from an investing psychological point of view, that after buying the chunk of HFEL a few weeks ago I haven't given it any more thought whereas I check my HYP share prices at least a couple of times a week.
That certainly chimes with my behaviour too. Far too often, I take a look at the HYP and go first to those of a currently capital-fragile nature (i.e. gone down since I bought) like CNA and SBRY. Total waste of time as I won't do anything anyway. The bigger ITs seem to be much less volatile, just as the overall value of a HYP is, most of the time.
I would be interested to see you post your other IT picks. Nice-looking HYP IMO by the way.
eyeball

[Itsallaguess]

The plan is to have the value of the ITs to be about 50% of the value of the HYP. I'll do this over the next year.

It's interesting for me, from a investing psychological point of view, that after buying the chunk of HFEL a few weeks ago I haven't given it any more thought whereas I check my HYP share prices at least a couple of times a week.

I find a similar level of 'positive dis-interest' in my own income-related Investment Trusts, Brendan, so thanks for raising this interesting point.

It's one of the characteristics of these types of income-investments that amount to tangible advantages for me personally, and is certainly something I'm quite willing to give up a small amount of income to maintain.

Cheers,

Itsallaguess

[bjmarren]

Hi Terry,

I don't really remember why I didn't consider Carillion or Provident Financial at the time but I'm sure luck was a factor. Maybe it was simply I didn't know them as companies plus they weren't the obvious pick in their sector by size, although I was chasing the yield somewhat at the time as I remember. I read the BP/Shell thread on the HYP board and I remember you posting that 15% of the capital of your HYP had been wiped out this year, so I guess your mention of these 2 companies is connected to that, my commiserations if so. Even after such a relatively short time as my own HYP, I now look back at some of my share picks and think that there were better choices out there at the time. I remember a poster around the time questioning why I was focussing on UK shares give where I was living and although a number of them do have a global exposure, some of them, Greene King, for instance, is solely dependent on the UK market and seems to be taking a bit of a battering. If I do buy more shares they'll have to have a more global exposure but I'll stick to what I've got for the time being.

Good luck!

Brendan

[bjmarren]

Hi eyeball,

Thanks for your comments.

I'll certainly post my other choices of ITs when I get round to them. I'm sure that, like the HYP shares, they'll be the usual suspects but with a regional focus. NAIT and MYI are a couple I'm looking at.

Cheers!

Brendan

[bjmarren]

Hi Itsallaguess,

Thanks for your comments which I certainly agree with. I know a number of posters elsewhere have mentioned that they are slowly moving from actively managing their HYPs to using ITs and ETFs to effectively reduce their involvement in the process but also to access regions and shares that they wouldn't necessarily feel competent in moving into as an individual investor. It's a wise move in my opinion, particularly as you get older and make plans for your spouses etc. Any reduction in the overall yield is more than made up for with the convenience of someone else doing the work.

Brendan

[OLTB]

Hi All,

My HYP is a year old today so I thought I would post its situation. As it was set up over the past year, I haven't yet received a years worth of dividends yet, but when I do I'll post again to post that area of its performance. As a bit of background, I'm a 60 year old (closer to 61) married male, who has been living in Bulgaria for the past 20 years. We're free of all debt and have property and land. We'll not be soley relaying on the dividends to provide an income as it will be one of a number of different income streams to provide an income in our dotage. It's a 15 share HYP comprised of the usual suspects. Here is the capital situation regarding the HYP. Hopefully I'll get round to producing decent tables to present such information as some point. Overall it's down 1.13%, excluding purchase costs (not that we're interested in such things of course!), but the dividends received so far have more than made up for this.

Vodafone +17.12
HSBC +17.05
William Hill +16.14
Shell B +11.15
Legal%Gen + 6.66
Rio Tinto + 5.78
Persimmon + 4.70
British Land + 0.10
Royal Mail - 0.22
SSE - 8.57
ITV -10.94
Capita -13.42
Imperial Tab -13.82
Glaxo -18.82
Greene King -29.00

Going forward, I'll probably not add to the number of shares or add any more capital but I'll reinvest the dividends for at least another year and then review the situation i.e. my employment situation, health etc. I have also bought a chunk of Henderson Far Eastern IT and will probably buy another 3 income focussed ITs to add to global diversification. The plan is to have the value of the ITs to be about 50% of the value of the HYP. I'll do this over the next year. It's interesting for me, from a investing psychological point of view, that after buying the chunk of HFEL a few weeks ago I haven't given it any more thought whereas I check my HYP share prices at least a couple of times a week.

I welcome any comments but realise that if its IT related, perhaps it should go on the Strategy Board which I often lurk at, as well as here.

Cheers!

Brendan

Hi Brendan

As a new HYPer myself, it's good to see some similar holdings and it will be interesting to see your income figures once the initial year or two has passed and you have a more realistic idea of the income generated.

I too have a basket of ITs as I don't wish to rely on one strategy and without my crystal ball, ultimately don't know which one will be the better!

Good luck, cheers, OLTB.

[bjmarren]

Hi OLTB,

Thanks for your comments. I'll certainly post my income figure when I have them all which should also give me enough time to practice creating and posting tables.

Cheers!

Brendan