viewtopic.php?f=15&t=9374&hilit=Arb%27s+HYP+11th+year&start=20#p108179
12th year:
Income
Total income provided by all equity investments is 2.0x my pension drawdown (2017 1.88x, 2016 1.75x). Paying my pension from investment income continues to be my preferred option, where the alternative is an annuity. The capital mix between my three income streams is as follows: HYP:incITs:incOEICS = 6:4:1, more or less the same as 2017. I've exited some bond funds and have only one in play at present, and that's a mixture, namely IP Monthly income plus so nearly all my income mentioned is from equity income.
Income per unit
Calculated on the basis of (total income/year end number of units) in pence:
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010
6.76 | 6.15 | 6.2 | 6.27 | 5.66 | 5.75 | 5.68 | 4.88 | 3.29
Rather better news on the income front this year with a decent increase, making up for the previous couple of years' failures. Since 2010, income per unit has increased by a factor of 2, comfortably ahead of RPI, though in the past five years my increase has only been around 3.2% pa.
Capital
Here's how the capital value has changed. Values are pence per unit (income units) at the year end:
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010
120.24 | 138.65 | 140.41 | 139.19 | 137.76 | 138.5 | 117.44 | 106.66 | 110.62
You will note that the unit price fell over 13% in 2018 and is now back to 2012-2013 values.
TR as calculated by XIRR is 7.06% since Jan 1st 2010 compared with the IT basket which achieved 8.33% from May 2009.
Tinkering, portfolio changes
January: disposal of Carillion
February: disposal of Interserve
March: disposal of Marks and Spencer
June: United Business Machines were taken over by Informa. I had already trimmed UBM earlier due to good capital rises reducing the yield, now the new company, INF has a similar yield. I shall probably let it rest for a while before doing anything, since the outlook is reasonable.
Buys
Persimmon was purchased with the capital from Marks and Spencer. In addition a good number of top-ups have taken place across the board in accordance with HYPTUSS, less any I've vetoed.
Charges
The following shows how total charges have varied. This includes all account and dealing charges. The right hand column shows the number of trades each year, which has reduced after the previous two years of re-organisation. The central column shows the charges as a percentage of income generated.
Income forecast
The forecast income for 2018 was 6.4p per unit, and 6.76p was achieved.
The forecast for 2019, made on 1st December 2018 is for the range 7.1p-7.3p per unit - a yield of 5.9% on the current unit price.
Here for your interest is a chart:
This illustrates how the (raw) 12 month forecast for income from HYPTUSS has varied across the years. The noteworthy point is that income is fairly steady while the unit price varies considerably.
Conclusion
Although the capital value has slumped, I am quite sanguine about this as it was certainly on the cards. The important fact for me is that the income overall has been more than good enough to pay my pension requirements. Possibilities for changes in the next year are a sale of Pearson which has been yielding around 2% or even less for some months now. Apart from that, it's business as usual.
I will post the HYP itself in this thread, but separately.