https://www.lemonfool.co.uk/viewtopic.php?f=56&t=32966&p=473928#p473928
Includes ITs, ETFs, and OEICs in addition to the mostly Hyp-ish shares portfolio.
Individual Shares
It's been an “interesting” year. Some recovery from Covid – no not you UK. The Russian invasion of Ukraine with attendant energy crisis. Tech share downturn. The disastrous Truss/Kwarteng mini-budget added to continued Brexit trade recession. On a personal level I had an unexpected health issue.
After all these gyrations my share portfolio size is now just £500 above a year ago, but after taking into account the new purchases and the Aviva return of capital that's a loss of around £4,500. Considering where we were at some points in the year it could be a lot worse.
New Shares Bought
A small initial purchase of City of London Inv Grp (CLIG), which like many financials had a bad summer but has now recovered a bit.
Shares Topped up
Greencoat UK Wind (twice) – both on temporary weakness (not often I manage to time those buys correctly.) Now doing well
Rio Tinto – again on a temporary weakness from which it’s now added 10 quid on the share price. Rio is definitely one of my successes, with both good capital gains and high dividends.
Vistry – not such good timing on this one as the autumn financial shambles and housing recession sent it tumbling.
Legal and General – bought in May on what looked like a recovery but Kwarteng put paid to that and it’s only now getting back to level. However it’s a long-term hold for me so happy to add more at this level.
Imperial Brands – Bought on the Ukraine downturn at about 16 quid and has recovered nicely. Overall I’m still well down on my historic purchases so it’s nice to be able to lower the average purchases price and get a good yield point as well.
Pan African Resources – my gold miner. Have held this for a long time and overall it’s done well for me. Had some dividends accumulate in my old HSBC account and that was the best one to top up (I’m not adding any new companies to that account) On production, profit and debt reduction figures it really should be much higher priced but the political situation in South Africa seems to depress the price.
I of course also acquired Haleon from the GSK split. Not sure I want to keep it but it plunged from the launch and is only just recovering a bit now. Doesn’t look likely to produce much yield but I’ll give it a year and see.
Shares sold
Nothing this year
Holdings now
As always - I regard SLF as a special case, so please no advice about too much insurance.
Value Div Fcst
Share Epic Sector %Total %Total Yield
Sun Life Financial Inc. SLF Life Insurance 13.57% 8.47% 3.60%
Legal and General Group LGEN Life Insurance 8.99% 11.85% 7.60%
Rio Tinto RIO Mining. 6.93% 10.10% 8.40%
Shell SHEL Oil & Gas Producers 6.65% 4.27% 3.70%
National Grid NG Multiutilities. 6.31% 5.47% 5.00%
Aviva AV Life Insurance 4.71% 6.04% 7.40%
BAE Systems BA Aerospace & Defence 4.52% 2.59% 3.30%
Pan African Resources PAF Gold Mining 4.42% 4.14% 5.40%
GlaxoSmithKline GSK Pharmaceuticals & Biotechnology 4.37% 3.18% 4.20%
Greencoat UK Wind UKW IT - Renewable Energy Infrastructure 4.20% 3.43% 4.70%
Imperial Brands IMB Tobacco 4.00% 4.65% 6.70%
Regional REIT Limited RGL IT - Property - UK Commercial 3.77% 7.13% 10.90%
HSBC Holdings HSBA Banks 3.66% 3.37% 5.30%
Taylor Wimpey TW Household Goods & Home Construction 2.75% 4.30% 9.00%
Polar Capital Holdings POLR General Financial 2.59% 4.08% 9.10%
Schroders SDR Financial Services 2.46% 2.00% 4.70%
Lloyds Banking Group LLOY Banks 2.14% 1.93% 5.20%
British Land Company BLND Retail REITs 1.98% 1.89% 5.50%
SSE SSE Electricity 1.61% 1.40% 5.00%
Chesnara CSN Life Insurance 1.32% 1.84% 8.00%
Haleon HLN Consumer Healthcare 1.12% 0.39% 2.00%
Vistry Group VTY Household Goods & Home Construction 1.04% 2.02% 11.20%
Vodafone Group VOD Mobile Telecommunications 0.91% 1.34% 8.50%
Ediston Property Investment Co EPIC IT - Property - UK Commercial 0.89% 1.07% 6.90%
Berkeley Group Holdings (The) BKG Household Goods & Home Construction 0.89% 0.09% 0.60%
Unilever ULVR Food Producers 0.78% 0.50% 3.70%
City of London Investment Grou CLIG Financial Administration 0.64% 0.86% 7.70%
Moneysupermarket.com Group MONY Media. 0.55% 0.58% 6.10%
MPAC MPAC Engineering 0.46% 0.00% 0.00%
Marston's MARS Travel & Leisure 0.36% 0.00% 0.00%
Petrofac Ltd. PFC "Oil Equipment, Services & Distribution" 0.36% 0.00% 0.00%
Cairn Energy CNE Oil & Gas Producers 0.26% 0.69% 15.00%
- - - Minnows - - -
Galliford Try GFRD Construction & Materials 0.22% 0.19% 5.00%
Greencore Group GNC Food Producers 0.17% 0.02% 0.80%
Essentra ESNT Support Services 0.16% 0.06% 2.20%
Centrica CNA "Gas, Water & Multiutilities" 0.11% 0.06% 3.20%
Majestic Wine WINE Retailers 0.09% 0.00% 0.00%
Hyve Group HYVE Media 0.02% 0.00% 0.00%
Value Div
Sector %Total %Total
Life Insurance 28.59% 28.20%
Aerospace & Defence 4.52% 2.59%
Household Goods & Home Construction 4.68% 6.41%
Retail REITs 1.98% 1.89%
Oil & Gas Producers 6.91% 4.95%
"Gas, Water & Multiutilities" 0.11% 0.06%
Financial Administration 0.64% 0.86%
IT - Property - UK Commercial 4.66% 8.20%
Support Services 0.16% 0.06%
Construction & Materials 0.22% 0.19%
Pharmaceuticals & Biotechnology 4.37% 3.18%
IT - Renewable Energy Infrastructure 4.20% 3.43%
Food Producers 0.95% 0.53%
Consumer Healthcare 1.12% 0.39%
Banks 5.80% 5.29%
Tobacco 4.00% 4.65%
Media 0.02% 0.00%
Retailers 0.09% 0.00%
Travel & Leisure 0.36% 0.00%
Engineering 0.46% 0.00%
Media. 0.55% 0.58%
Multiutilities. 6.31% 5.47%
Gold Mining 4.42% 4.14%
"Oil Equipment, Services & Distribution" 0.36% 0.00%
General Financial 2.59% 4.08%
Mining. 6.93% 10.10%
Financial Services 2.46% 2.00%
Electricity 1.61% 1.40%
Mobile Telecommunications 0.91% 1.34%
73% of it is in ISA's
Due to the remaining minnows which just haven’t been worth selling, the median holding is only around 2.7k but the mean holding is around 4.5k.
Dividends
Dividends in 2022 increased to £8745 from £7,956 in 2021, but were slightly lower than initially projected due to the following - Berkely (BKG) produced hardly anything this time, Aviva was lower due to the return of capital and consolidation, GSK was down, while Rio’s specials weren’t quite as generous as last year.
Projection for 2023 is just over £9145.
The running yield is 5.7%, which feels about right despite the continued shambles at Sharecast making the figures less than reliable.
Overall Capital Performance
Miners, oil, and tobacco have all recovered while house builders, financials, and REITs have suffered.
Winners
Mostly the old traditionals:
BAE, RIO, Shell, Imperial Brands, HSBC
Losers, oddities, and serial disappointers
Losers I’m not worried about
House builders Taylor Wimpey and Vistry – both cyclical but seem sound enough.
Legal & General – solid and sure to bounce back from external issues. Excellent dividends.
Losers I am a bit concerned about
Marstons – could be the next Carillion – very worried, should have sold earlier.
Regional REIT – sentiment seems to be very down on REITs at the moment. It seems sound but the share price is refusing to recover at the moment. Not too worried and dividends continue to flow.
Polar Capital Holdings – did well for me at first but this year has seen poor results and lower funds under management. Not sure.
Serial disappointers
VOD – I should never have kept this after the disposal of the US Verizon holdings. Constant downward path for the last few years.
British Land - no signs of recovery here.
Lloyds – if I had a pound for every article I’ve ever seen saying that Lloyds are bound to go up soon I might almost have recovered my losses. To think they were once at 6 quid.
Oddities
Chesnara – keeps looking as if it’s recovering and then always falls back again.
Majestic/Naked Wine – has plunged this year, despite a US “expert” commentator describing it as a money making machine! (moral: never listen to expert commentators!)
MPAC – very volatile. Has also had a bad year.
And let’s not mention Petrofac.....
Proper Steady-Eddies
National Grid is about the only one that can claim that this year.
ETFs
My only ETF is VWRL. It started the year at around £89 and yo-yoed between 90 and 78 through the year before arriving now at £85.41. Probably a good summary of the whole overall picture.
I made a 15% top-up in November. My two 2017 buys are around 41% up while the two most recent ones are just a couple of percent up. I just wish I’d put all my 2017 investments there instead of buying so many shares that turned out to be at their top!
ITs
These turned in a very mixed performance in the last year. Here I had made the mistake of putting most of my 2021 investments into growthier ITs – partly because I felt I was too biased towards income (and HFEL was dropping persistently) and partly because with much of it going into unsheltered holdings I was trying to avoid going over the £2000 tax allowance threshold. My timing could hardly have been worse as growth suddenly went into reverse in 2022 and Europe got hit by the Ukraine invasion. Had I simply put it all into Foreign and Colonial (FCIT) I’d have been ok. Instead I put some into JFJ, which promptly reversed its climb, BlackRock Greater Euro (BRGE), and TR Property (TRG) which, having done well in 2021, suffered from both Ukraine and the property slump. I’m heavily down on all of those.
Of the others:
HFEL has recovered from a big slump in mid-October but is still a little down on the start of the year.
MYI which had slumped by over a third at the beginning of Covid staged a big comeback which has continued in 2022.
FCIT had a difficult first half of the year but has recovered and finished up.
MRCH dropped twice – on Ukraine and on Trussonomics but has recovered strongly since then and is slightly up.
BRSA has merely oscillated about a mean level and finished pretty much where it started.
JGGI had an unusually erratic year but finished almost back to where it started.
The end result was that having accounted for top-ups of FCIT and BRSA I lost about £1500 over the year, so it could have been worse.
Holdings
Value Div Fcst
Share Epic Sector %Total %Total Yield
F and C Investment Trust FCIT IT - Global. 23.88% 8.27% 1.44%
JPMorgan Global Growth & Incom JGGI IT - Global Equity Income 20.11% 18.87% 3.90%
Henderson Far East Income Ltd. HFEL IT - Asia Pacific Income 19.47% 41.70% 8.90%
Merchants Trust MRCH IT - UK Equity Income 9.52% 11.23% 4.90%
BlackRock Sustainable American BRSA IT - North America 8.17% 7.47% 3.80%
BlackRock Greater Europe Inv T BRGE IT - Europe. 7.67% 2.58% 1.40%
Murray International Trust MYI IT - Global Equity Income 4.52% 4.46% 4.10%
TR Property Inv Trust TRY IT - Property Securities 4.48% 4.85% 4.50%
JPMorgan Japanese Inv Trust JFJ IT - Japan. 2.17% 0.57% 1.10%
Running Yield: 4.16%
Value Div
Sector %Total %Total
IT - Global. 23.88% 8.27%
IT - Japan. 2.17% 0.57%
IT - Asia Pacific Income 19.47% 41.70%
IT - UK Equity Income 9.52% 11.23%
IT - North America 8.17% 7.47%
Dividends
Were up at £1585
Projected for 2023 at £1678
Running Yield is 4.08%
OEICs
Both my OEICs had poor years – seemingly Ukraine and the Kwarteng crisis again - the first being about 3k down despite a recent recovery, and the second being 2k down – having been a further 3k down at Xmas.
Property
My late dad’s old house remains rented out, and generates around the same as the state pension.
My own house in Edinburgh remains in the care of my godson while I'm out here in Slovenia. I’ve been struggling healthwise for the last 15 months and was diagnosed with rheumatic polymialgia in March – recovery took most of the year but recently I’m much improved – but it’s meant that I haven’t been back to the UK during that time and haven’t been able to do much upgrading on my house here.
Pensions
I started drawing my state pension in April 2021. I'm still doing some part-time consultancy work for my oldest client. With concentrating on recovering I haven’t spent much this year and haven’t needed to start drawing down from my personal pensions yet.
Cash
As a result of the illness I've been reluctant to take too many critical decisions so I’m still a bit heavy in cash at the moment. Given that I can't put new money into ISA's and the UK is reducing the tax limits on dividends and capital gains my scope for using it is reducing. I’m considering whether I can afford to buy property in the Netherlands, where my girlfriend lives, in order to save on rental costs there, but that would require some major changes which I haven’t felt ready to make while recovering.
Overall conclusion
So despite global calamities my overall portfolio spread is still very similar to last year:
Property 39.5%
Cash 16.5%
Pension pot 16%
Shares 13%
OEICs 11%
ITs and ETFs 4%
We’ve now had three crazy years in a row and it would be nice to live in boring times for a change! A little down all round but could have been a lot worse.
As always many thanks to everyone who's responded to me here and made their knowledge available to us all.
cheers
Spiderbill