This is an update of my HYP. Previous updates should be at another place might be found at the links below (it took ages to find my 2015 update as the TMF search engine seems even more useless than it was when the boards were still open):
December 2105 http://boards.fool.co.uk/daves-hyp-upda ... 12972.aspx
December 2014 http://boards.fool.co.uk/daves-hyp-update-13149373.aspx
December 2013 http://boards.fool.co.uk/daves-hyp-update-12951411.aspx
Name Ticker % capital % income
ARM Holdings ARM 0.00* 0.60
British Telecom BT.A 4.86 4.06
Aviva AV. 3.78 3.71
Dixons Carphone DC. 0.83 0.51
Intercontinentals Hotel Grp IHG 0.55 2.04
Glaxo SmithKline GSK 3.45 4.97
Lloyds TSB LLOY 2.15 2.10
Mitchels & Butler MAB 0.07 0.05
Prudential Plc. PRU 3.49 2.37
Royal Dutch Shell RDSB 3.98 5.15
Scottish & Southern Elec. SSE 5.93 7.44
United Utilities UU. 2.38 2.26
Vodafone VOD 3.17 4.01
Royal bank of Scotland RBS 0.14 0.00
Persimmon PSN 3.94 5.43
SEGRO SGRO 5.00 3.84
Marks and Spencer MKS 1.59 2.31
Smiths (DS) SMDS 3.72 2.61
William Hill WMH 1.23 1.15
BP BP. 1.68 2.17
BHP Billiton BLT 2.68 1.02
AstraZeneca AZN 2.87 2.88
British Land BLND 2.71 2.67
Carrilion CLLN 3.29 5.65
Tesco TSCO 1.52 0.00
Lloyds prefs LLPC 2.50 3.70
Emerging markets divi ETF EMDV 4.89 4.72
Sainsbury (J) Plc SBRY 1.75 1.89
Ishares Euro divi ETF IDVY 4.04 4.30
South 32 S32 0.34 0.04
BAE Systems BA. 4.78 3.76
Ishares Asia Pacific divi ETF IAPD 3.83 1.79
Legal & General LGEN 5.23 5.86
Pennon PNN 3.20 1.65
Galliford Try GFRD 3.48 3.26
This year I have new purchases in Ishares Asia Pacific dividends ETF (IAPD), Legal and General (LGEN), Pennon (PNN) and Galliford Try (GFRD) as new additions and topped up British Aerospace (BA.) and Carrillion (CLLN). Arm was taken over for cash (* which is why it makes up 0% of the portfolio, but it did provide some income) at a significant profit and the money reinvested (mostly in GFRD which will cause a large increase in dividend cash) and the Amlin money that appeared at the beginning of the year was mostly reinvested in LGEN.
The portfolio was unitised from September 2003 and the details are shown below.
Capital Performance (dividends reinvested) (Accumulation units).
Date Unit Value (£) XIRR for the year
31/09/2003 1.00
31/12/2003 1.08
30/06/2004 1.13
31/12/2004 1.27 17.83%
30/06/2005 1.40
31/12/2005 1.50 17.99%
30/06/2006 1.64
31/12/2006 1.92 28.21%
30/06/2007 1.96
31/12/2007 1.95 1.59%
30/06/2008 1.54
31/12/2008 1.22 -37.24%
30/06/2008 1.16
31/12/2009 1.44 19.51%
30/06/2010 1.35
31/12/2010 1.70 18.18%
30/06/2011 1.82
31/12/2011 1.70 0.33%
30/06/2012 1.77
31/12/2012 2.01 18.54%
30/06/2013 2.28
31/12/2013 2.55 26.70%
30/06/2014 2.65
31/12/2014 2.65 3.82%
30/06/2015 2.89
31/12/2015 2.77 4.64%
30/06/2016 2.73
31/12/2016 3.12 12.61%
Income Performance
% Change in % Change in
Date Dividend/unit Dividend/unit cash income
31/12/2002 - - 176%
31/12/2003 5.13p - 67%
31/12/2004 5.31p 3.69% 15%
31/12/2005 5.82p 9.57% 25%
31/12/2006 6.61p 13.45% 22%
31/12/2007 7.34p 11.06% 18%
31/12/2008 8.37p 14.07% 24%
31/12/2009 6.07p -27.04% -18%
31/12/2010 6.53p 7.45% 21%
31/12/2011 7.57p 16.01% 29%
31/12/2012 9.36p 23.55% 35%
31/12/2013 10.07p 7.65% 14%
31/12/2014 10.84p 7.59% 12%
31/12/2015 12.29p 13.38% 18%
31/12/2016 14.59p 14.59% 25%
My portfolio contains EMDV, IDVY and now IAPD all exchange traded funds. These have been included to add extra diversification to high yielding companies in Emerging and non UK Markets that I am not going to be able to get by buying individual shares. Last year I said I might add a couple of ITs in specific areas, I was thinking of BRCI or BRWM (Blackrock commodities and mining ITs) as an alternative to adding to BLT and HICL as an infrastructure fund. I haven’t invested in any ITs yet, it might happen this year.
I had to find a home for a large chunk of cash that came from the Amlin takeover which amounted to 1.5x my median holding size and that went mostly into LGEN plus the cash from the ARM takeover which mostly went into GFRD, which has been good for the income as it has a much higher yield than ARM had
Last year the yield on end of year value was 4.43% and on sum invested was 8.1%. This year, even with a number of dividend cuts the dividend is up by 15% per unit and 25% in cash terms (as I’m still adding new money to the portfolio). This year the portfolio yield is 4.51% on the end of year capital value and 9.44% on original cost. The overall return is up a little to 8.6% pa calculated with XIRR on excel since I started the HYP.
I’m pretty happy with the performance on the income front and the capital performance was reasonable though lower than for the FTSE 100 total return index.
