The PF is a diversified collection of 20 income-focused Investment Trusts. It was built over several years and received its substantial final funding from the transfer in of DC funds from our respective final employers in July 2018. There's a list of the trusts in the Capital section below.
It has 60% of the capital invested in Equity based trusts covering UK equities (4 trusts,) International (5) and Private Equity (2.) The remaining 40% is split between Debts/Bonds (2), Property (3) and Infrastructure trusts (4.) These are held within SIPP accounts with Hargreaves Lansdown in mine and Mrs MP's name which are now in drawdown.
To help with ongoing analysis, and for confidentiality, all of the £££ capital and income values in this report reflect that the starting capital has been rebased to indicate a £100,000 initial investment as at 31.07.2018. All income is being withdrawn. This is a “buy and hold” PF and there has been no sales or purchases within the PF over the year.
The PF commenced at the end of July 2018 with a forecast yield of just under 5.7% and the expected income was therefore £5,677 for the year.
Income for the year actually amounted to £5,743, very slightly above the forecast. There were two dividend “cutters.” European assets annouced a 23% reduction in distributions for 2019, reflecting its poor performance in the market turmoil up to year end 2018 – this impacted the 3rd and 4th dividends in my financial year. Twentyfour income Fund redcued their final dividend from 2.73p in 2018 to 1.95p causing a 10% deficit for the year. The other 18 trusts fortunately had modest gains over forecast, making up the slack.
The PF is an income producer for us. Capital performance is secondary to me therefore, but still of interest of course. It's been a tumultuous year of course, with the market correction at the end of 2018 and the subsequent near-recovery. Overall, the PF is showing a 2.71% gain in share price performance. Here's how the 20 trusts have performed over the year. Add on the income and the total return is in the region of 8.5%, which I think is satisfactory.
Code: Select all
Investment Trust | Asset Class | 31.07.2018 | 31.07.2019 | Variance
European Assets Trust | Equity/International | £5,458 | £5,070 | -7.12%
Merchants trust | Equity/UK | £5,647 | £5,251 | -7.01%
Standard Life Property Income | Property | £4,732 | £4,421 | -6.57%
Twenty four income | Bonds/Debt | £4,601 | £4,351 | -5.44%
CQS New City High Yield Fund Ltd Ord NPV *1 | Bonds/Debt | £5,657 | £5,418 | -4.22%
Henderson High Income Trust plc Ordinary 5p Shares | Equity/UK | £5,521 | £5,352 | -3.06%
Shires Income | Equity/UK | £5,561 | £5,458 | -1.86%
Princess Private Equity Holdings Ord EUR0.001 *R | Equity / Private | £5,746 | £5,688 | -1.02%
Real Estate Credit Inv | Property | £4,700 | £4,700 | 0.00%
Middlefield Canadian | Equity/International | £5,201 | £5,230 | 0.55%
Sequioa Infrastructure | Infrastructure | £3,931 | £3,962 | 0.80%
GCP Infrastructure | Infrastructure | £3,645 | £3,728 | 2.28%
Murray International | Equity/International | £5,636 | £5,850 | 3.80%
Henderson Far East Income | Equity/International | £5,737 | £6,015 | 4.85%
Dunedin Income Growth Investment Trust Ordinary 25p *1 | Equity/UK | £5,736 | £6,230 | 8.63%
Regional REIT Ltd NPV | Property | £4,608 | £5,121 | 11.13%
John Laing Environment Asset | Infrastructure | £4,568 | £5,189 | 13.60%
Blackrock North America Income | Equity/International | £4,930 | £5,771 | 17.06%
Apax Global Alpha Limited | Equity/Private | £4,668 | £5,496 | 17.74%
The Renewables Infrastructure Group Limited Ordinary Shares NPV | Infrastructure | £3,717 | £4,412 | 18.69%
| | £100,000 | £102,712 | 2.71%
Comments and queries are very welcome.
Thanks for reading