moorfield wrote:Enough of an income difference to warrant the pfaff of running an HYP? Or to put the question differently: what financial objective is ArbHYP fulfilling that ArbIT isn't? The answer to that would be most instructive to would-be HYPsters I think.
Is there any more of a pfaff running an HYP than any other portfolio which is not wholly passive?
The objective of an HYP is to deliver a high and growing flow of dividends. Quite a lot of ITs deliver one but not both of these objectives. Luni's B7 and B8 attempted to do both. I have a comparison with HYP1 of dividend income which was posted on TMF:
Year to HYP1 B15+ B7 B8
Nov. 12*
2000
2001 3,451 2,285 2,073 2,462
2002 3,474 2,385 2,185 2,525
2003 3,197 2,470 2,278 2,601
2004 3,205 2,578 2,406 2,694
2005 3,546 2,745 2,606 2,838
2006 4,131 2,972 2,766 3,113
2007 4,452 3,392 3,151 3,448
2008 5,040 3,720 3,587 3,700
2009 3,187 3,871 3,812 3,797
2010 3,297 3,959 4,024 3,916
2011 3,843 4,108 4,208 4,042
TOTALS 40,823 34,486 33,094 35,135
* or nearest previous trading day
http://boards.fool.co.uk/baskets-and-hy ... 09151.aspx was the origin of that table. I think that it was posted by Luni. He probably has posted more recent versions of that table here. That covers the dreaded 2008 crash, of course. It might be instructive to compare Arbit with recent figures.
TJH