Here is my end of 2016 HYP report. It is my first attempt at posting tables, so apologies in advance for any problems.
Holdings:
Forecast Yield for 2017 = 5.0%
Income Unit Performance
* Number of units is the percentage increase in the number of units compared to the previous year.
My unitising spreadsheet calculates the dividend income based upon the close price on the day before the dividend is paid. This provides the dividends as a percentage of total portfolio value at that point in time. This is the dividends based upon the 'spot total'. I also calculate using the year end value, which I think is comparable to other people's reports (but mine is better
). Accumulation Unit Performance
XIRR
Total XIRR since HYP inception on 10/06/2010 = 12.91%
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So...... Things seem to be going quite well and I'm certainly happy with this year's results. My total portfolio value is 2.7% ahead of the target I set at the beginning of the year (which should take care of inflation) and my dividend income is 7.6% ahead of target.
Here are a few musings:
- I have once again benefited from timing (!). I saved up my ISA and SIPP contributions because I was expecting a vote for Brexit. I invested in BDEV, KIE and GNK. KIE and BDEV have done very well, but GNK is slightly down.
- I was suffering a slight loss of faith in the autumn. Quite a few of my shares were under pressure and it was pulling down the value of my portfolio - SKY, RMG, NG, AZN, GSK, IMB, ULVR. It was a bit of a perfect storm, but I sat tight and my accumulation unit price is almost back to the year high of £1.96. The dividend stream definitely helped this.
- My HYP is rather unbalanced due to RPC, but I'm loath to trim such a well performing share. I'll try to rebalance by selectively topping up other holdings or adding new shares.
- I've started buying some ITs to reach other parts of the global economy, but I will have to create a new spreadsheet to keep track of their performance. Moving money between the two portfolios should be simple enough once the spreadsheet is completed. I'll wait until next year before providing a review.
- I dipped my toe into value investing and acted on a couple of Simon Thompson's tips (LMS and Bango). I received a painful second degree burn for my trouble. Don't do it kids - just say 'no'
2017 Outlook
- I'm expecting a market correction at some point, probably triggered by a Eurozone crisis. With the FTSE and S&P500 at record levels, I think the only way is probably down - especially given the developed world's debt issues. I'll keep buying the ITs via my SIPP providers cheap trading days, but I'll probably save up my ISA contributions and keep an eye out for any bargains.
- I'm still building my HYP, so this could potentially be a good thing if I have money to hand and am able to take advantage of any price drops.
- Mrs Grimer and I are currently house hunting, so I may not be able to put in as much this year as I'd like - especially with the new stamp duty surcharge on second properties. I might even have to touch my ISA (
). This is a black cloud on the horizon and I'm not sure what is the best course of action.
So that's about it. Questions on a postcard, etc.