MrDoppleGanger wrote:hi tieresias, thanks for the portfolio list - very interesting.
Could you give me a rough and ready relative size of the relative portfolios and HYP.
Sure. I update my records quarterly. As of 30th September 2016, the split in capital values between my various securities portfolios was:
Bond funds: 23%
Foreign Equity Income ITs: 19%
UK Equity Income ITs: 18%
Growth ITs: 10%
That was the "rough and ready answer". More details below...
The bond funds, which I didn't mention in my post of 14/11, are accumulating units inside an ISA. I am currently non-resident, so unable to add, but in any case the portfolio has the reached the absolute value that I want.
The HYP, of 30 shares in 21 sectors, has also reached the absolute value that I want, so I am reinvesting dividends but adding no new money.
I am adding new money to the Foreign and UK Equity Income ITs and to the ETF (also not mentioned on 14/11; more below) portfolios, as well as reinvesting dividends alongside the new money. The new money is coming from a mixture of cash savings and salary. I expect the first two portfolios to be complete by year end and ETFs by early 2017.
The first five portfolios comprise my "Income Pot", to supplement a deferred DB pension. The reason that I am using cash savings to boost it is not that I am trying to time the market but rather that I am expecting to lose my job very soon and hope not to need another. So, I want the Income Pot fully operational asap to minimise dividend drag effects.
My target allocations within the Income Pot are that bonds and the two equity income portfolios will be of equal size; HYP (highest natural yield) will be 30% bigger and ETFs (lowest natural yield) 30% lower. Once everything is switched into distributing mode, I am expecting an overall yield of 4%.
For the time being, I am adding nothing to Growth ITs. Their job is to provide me with money to spend on fun stuff 5-10 years in the future, my so-called "Splurge Pot". This portfolio is held with the same broker as Foreign Equity Income ITs, so any dividends it produces are re-invested in the latter.ETF Portfolio:
- SPDR S&P Global Dividend Aristocrats UCITS ETF (GBDV.L)
- iShares Core FTSE 100 UCITS ETF (Dist) (ISF.L)
- iShares FTSE 250 UCITS ETF (MIDD.L)
- Vanguard FTSE All-World UCITS ETF (VWRL.L)
This is a recently created portfolio, with anticipated yield of 3%, held with a separate broker. Whilst the other three equity components of the Income Pot are focussed on High Yield, I thought it would be sensible to allocate some money to an average yield total return portfolio, again split between the UK and the rest of the world.