TheRIT's 2016 HYP Review

[TheRIT]

Happy new year all! My HYP is only a fairly modest 6% of my total investment portfolio but at the same time it spins off 16% of my total dividends. I like the benefit that the extra dividends bring, as in FIRE I'd like to just be spending divi's, but continue to track it separately to ensure it's total return is at least close to simple trackers. If it can't I'd have to suck it up, switch the HYP to trackers and accept I'd need to sell down capital to eat in exchange for better total return.

The only tinkering for 2016 was the forced sale of AML which I didn't replace but rather just accepted a reduction in HYP units.

Performance for 2016:
- Trailing dividend yield was 5.0% vs FTSE100 3.7% vs FTSE250 2.7%.
- Capital gain was 15.4% vs FTSE100 14.4% vs FTSE250 3.7%.
- Total return was 20.4% vs FTSE100 18.1% vs FTSE250 6.4%.

So a good year. Lot's of lovely dividends with dividends per unit up 12% although some of that will be dividend payment timing as I was still buying HYP shares in 2015. Should get a clearer picture on whether I'm getting average dividend growth above inflation from next year.

Additionally on a total return basis, which is important to me, the HYP has beaten both the FTSE100 and the FTSE250.

The HYP ends the year looking like this:


Back to HYP sleep until next year me thinks.