What does it look like now.

[Raptor]

After a few months of tinkering my portfolio looks like this. Got rid of CLLN and brought some VOD this week..



Should have a few top-ups or maybe even buy another share depending of dividend income this financial year. Have maxed my ISA now.

Raptor.

[TimR]

I'm do not run a HYP so I may not be qualified to comment. (I have a Global ETF / IT portfolio instead plus a few legacy UK shares )

However I do not understand the point of holding a few UK focused investment Trusts as well as a portfolio of HY shares (unless they were covering areas I did not cover eg small caps) ?
I can see the point of holding Global /World Region collectives as HFEL and MYI but not the UK focused ITs.
I would be using ITs and/or ETFs just to give exposure to other parts of the world that my HYP did not cover.

TimR

[Raptor]

I'm do not run a HYP so I may not be qualified to comment. (I have a Global ETF / IT portfolio instead plus a few legacy UK shares )

However I do not understand the point of holding a few UK focused investment Trusts as well as a portfolio of HY shares (unless they were covering areas I did not cover eg small caps) ?
I can see the point of holding Global /World Region collectives as HFEL and MYI but not the UK focused ITs.
I would be using ITs and/or ETFs just to give exposure to other parts of the world that my HYP did not cover.

TimR

Good point about the UK based IT's. It goes back to a few years back on TMF on a thread about what to do if or when you can no longer manage your portfolio. IT's were a popular way to move towards, so as I was about to take control of all my pension pots in a SIPP I did a 50/50 split of IT's and Equities. Picking some IT's that allowed me to expand areas I did not cover and also Income type IT's. As it goes the IT's are growing faster than Equities due to "tinkering" for CGT, BED & ISA and getting rid of a few shares to fund my building project. I have ring-fenced my ISA and SIPP though and am reducing my trading account to minimize paying tax on divi's (will take a bit of managing there).

In partial drawdown taking divi income from trading account as "pay-away", helps fund my many holidays.

Raptor.

[Itsallaguess]

I'm do not run a HYP so I may not be qualified to comment. (I have a Global ETF / IT portfolio instead plus a few legacy UK shares )

However I do not understand the point of holding a few UK focused investment Trusts as well as a portfolio of HY shares (unless they were covering areas I did not cover eg small caps) ?

I can see the point of holding Global /World Region collectives as HFEL and MYI but not the UK focused ITs.

I would be using ITs and/or ETFs just to give exposure to other parts of the world that my HYP did not cover.

Isn't there at least a few other potential benefits from owning IT's, even if there's some overlap in specific equity-exposure?

Some off the top of my head -

1. Discount control capability by the manager.

2. Built-in income-reserve, for anyone looking for smooth income payments. I appreciate this can be done by anyone holding a HYP anyway, but some might see it as a hands-off approach to at least getting some essence of smooth-payment into their yearly income, and see a benefit from having someone else look after a 'portion' of hands-off cash-buffer...

3. Manager-discretion in terms of market/macro calls. Importantly, the manager would NOT be the same manager of the HYP....I think this aspect is often overlooked, although of course some IT managers are more 'active' in this regard than others...

4. Possibility of Discount/Premium investment timings, getting more bang for your buck on the way in, and possibly more buck for your bang on the way out...

I'm not suggesting that these are all positive benefits all of the time, and I'm not trying to suggest that taking advantage of those benefits, even if you do see them as such, doesn't come at a cost, but I don't think it's quite as simple as just looking at market-segment exposure between an IT and someone's HYP and suggesting that there's no other benefits at all if there's significant overlap...

Nice HYP by the way Raptor. How's the income looking, is it starting to snowball nicely yet in terms of re-investment of organic-income?

Cheers,

Itsallaguess

[Raptor]

Itsallaguess,
Very happy with income. It has exceeded what I was looking for, which has given me the option to actually reduce the portfolio to finànce a "stunning" extension on the house. Need to get a valuation to see what I am worth now? Going forward I have that cushion knowing that even without state pension in 4 years time I could just stop everything now with ease, but cannot see me stopping work completely just yet. Still re-investing dividends in SIPP & ISA, between them I expect 4/5 top-ups or purchases a year.

Last year achieved 5.59% yield. Forecast this year is lower but as long as it is around 5% I will be very happy.

Raptor