Gadge Global Income Portfolio Dec 2106 Review

Wider investment strategy discussions not dealt with elsewhere
Gadge
Lemon Pip
Posts: 65
Joined: November 4th, 2016, 10:31 pm

Gadge Global Income Portfolio Dec 2106 Review

Postby Gadge » December 25th, 2016, 9:42 pm

With apologies for rubbish formatting.

This is where we are today :-

The City of London Investment Trust Plc
CTY:LSE 403.00 GBX13:15 GMT 0.00
0.00% 20,097.61 GBP
4,987.00 shares
+503.69
+2.52%

Murray International Trust Plc
MYI:LSE 1,168.00 GBX13:19 GMT 0.00
0.00% 11,002.56 GBP
942.00 shares
+1,106.85
+11.07%

Law Debenture Corporation
LWDB:LSE 527.00 GBX13:15 GMT 0.00
0.00% 10,566.35 GBP
2,005.00 shares
+670.67
+6.71%

Henderson International Income Trust
HINT:LSE 147.25 GBX13:26 GMT 0.00
0.00% 10,442.97 GBP
7,092.00 shares
+609.91
+6.10%

Princess Private Equity Holding Ltd
PEY:LSE 8.65 EUR10:07 GMT 0.00
0.00% 6,887.39 EUR
796.00 shares
+1,124.35
+18.81%

Chelverton Small Companies Dividend
SDV:LSE 212.50 GBX12:28 GMT 0.00
0.00% 5,590.88 GBP
2,631.00 shares
+738.00
+14.76%

City Natural Resources High Yield Trust plc
CYN:LSE 124.50 GBX12:12 GMT 0.00
0.00% 5,454.35 GBP
4,381.00 shares
+624.29
+12.49%

Standard Life Investments Property Income Trust Ltd
SLI:LSE 86.75 GBX13:21 GMT 0.00
0.00% 5,421.88 GBP
6,250.00 shares
+570.63
+11.41%

Sequoia Economic Infrastructure Income Fund Ltd
SEQI:LSE 115.00 GBX12:35 GMT 0.00
0.00% 5,203.75 GBP
4,525.00 shares
+339.38
+6.79%

City Merchants High Yield
CMHY:LSE 192.00 GBX12:35 GMT 0.00
0.00% 5,155.20 GBP
2,685.00 shares
+221.51
+4.43%

Henderson Far East Income Limited
HFEL:LSE 338.25 GBX12:35 GMT 0.00
0.00% 5,124.49 GBP
1,515.00 shares
+279.52
+5.59%

CQS New City High Yield Fund Ltd
NCYF:LSE 58.50 GBX13:32 GMT 0.00
0.00% 5,021.06 GBP
8,583.00 shares
+230.02
+4.60%

JPmorgan Global Emerging Markets Income Trust PLC
JEMI:LSE 114.00 GBX12:22 GMT 0.00
0.00% 4,961.28 GBP
4,352.00 shares
+88.35
+1.77%

European Assets Trust N.V.
EAT:LSE 1,015.00 GBX12:23 GMT 0.00
0.00% 4,932.90 GBP
486.00 shares
+79.16
+1.59%

Gadge
Lemon Pip
Posts: 65
Joined: November 4th, 2016, 10:31 pm

Re: Gadge Global Income Portfolio Dec 2106 Review

Postby Gadge » December 25th, 2016, 10:31 pm

After losing my work twice so far, I have decided to do this review in several posts!

A quick recap.

GGIP was devised in August 2016 as a £100k Globally invested income portfolio in the hope of providing greater diversification to L'Universal's Equity Income Baskets.

GGIP will probably be mainly invested in ITs but is quite unrestricted and can be invested in any asset.

The primary aim is Income.
The secondary aim is Capital growth.
The Third aim is beat inflation.
The fourth aim was to beat ETF low cost alternatives.

I am benchmarking against Inflation, PNL and Vanguard 80/20
It is not expected that PNL will outperform GGIP except in a really tough market but it gives a good cautious portfolio to benchmark against.

Vanguard 80/20 was the nearest equivalent that we could find to GGIP in that it was globally invested 80% in risk assets.
It also made an ideal low cost benchmark to challenge GGIP against.

As can be seen from the above post. We have no detractors from performance to date.
All investments are positive to date but a rising tide normally floats all boats!

GGIP is valued today at £107091.00
Included in that figure is £2252.00 income

Gadge 'Global Income Portfolio'
16 HOLDINGS
107,207.70 +4,969.10
+4.86% +7,221.87
+7.27%

PNL Benchmark
1 HOLDING
97,488.40 GBP -2,158.60
-2.17% -1,455.80
-1.46%

Vanguard 80/20 Benchmark
1 HOLDING
107,182.22 GBP +7,222.29
+7.23% +7,222.29
+7.23%

Vanguard is doing very well. They have been ahead at various times.
I suppose this is to be expected as it is 80% invested in equities at a time when this asset class has done very well.

But it is early days yet!

JPGI, PEY, BION and SBEG were all added to my real life investments whilst devising GGIP.
JPGI and PEY have been great performers for me to date.

I considered replacing HINT with JPGI within GGIP but have decided against it preferring to stick with HINTs value stocks going forward.

I had planned buying NCE (New City Energy) with the income to date at this review but annoyingly New City recently decided to liquidate it.

I have therefore invested in GPM (Golden Prospect Metal) another New City IT which is rather down on its luck at the moment.
This does not pay an income but will add to diversity. I bought these in real life on 32.10 on 20/12 so have used this as the buy date for GGIP.

Gadge
Lemon Pip
Posts: 65
Joined: November 4th, 2016, 10:31 pm

Re: Gadge Global Income Portfolio Dec 2106 Review

Postby Gadge » December 25th, 2016, 10:36 pm

Consumer Price Index shows a rise from 0.9 to 1.2 from Oct to Dec 2016

https://www.ons.gov.uk/economy/inflatio ... /d7g7/mm23

Gadge
Lemon Pip
Posts: 65
Joined: November 4th, 2016, 10:31 pm

Re: Gadge Global Income Portfolio Dec 2106 Review

Postby Gadge » December 25th, 2016, 10:45 pm

Conclusion

I am extremely happy with the progress of Gadge GIP to date and am delighted to have no losers.
Most unusual in the early days of any portfolio!

I am humbled by the performance of the fire and forget Vanguard 80/20 fund!

Although this route offers low costs it is a fund, so would attract platform fees e.g.Hargreaves Lansdowne would charge .45% p.a. so these would be a detractor in real life returns.

GGIP IT fees although higher, like Vanguard's own fees are included in the returns given.

Any questions?

If not this concludes the 2016 Xmas review.

Have a great holiday everyone.

See you at next years update or on the boards generally.

Gadge

Gadge
Lemon Pip
Posts: 65
Joined: November 4th, 2016, 10:31 pm

Re: Gadge Global Income Portfolio Dec 2106 Review

Postby Gadge » December 25th, 2016, 11:19 pm

Typo correction...

GGIP is valued today at £107207.00
Included in that figure is £2252.00 income ytd.

forlesen
Posts: 9
Joined: November 4th, 2016, 11:14 pm

Re: Gadge Global Income Portfolio Dec 2106 Review

Postby forlesen » December 26th, 2016, 1:05 am

Gadge, can I ask exactly what date you are tracking your portfolio from? You don't seem to make this clear anywhere.

I've tried to work it out from historic closing price data for some of your shares (ones I hold myself, e.g. Law Debenture and Henderson FE Income).

This highlighted an apparent problem. For HFEL, you show the correct closing price on Friday of 338.25p, and appear to show a gain of 5.59%. (By the way, it's hard to be confident about what some of your figures mean, as you don't provide headings.)

This would imply a purchase price of around 320p. But looking at market high and low data for the past few months on here: http://www.livecharts.co.uk/share_price ... -data-HFEL, I cannot see any date since 1 August when HFEL's share price was anything like this low. (I went back this far as you state in your second post that the portfolio was devised in August 2016.)

Even factoring in the interim dividend of 5.1p per share declared on 25th October does not seem to bridge the gap. Or are you also counting the dividend declared on 27 July and paid on 31 August? That would only be valid if your portfolio dates from before 5th August, as that was the record date for that dividend payment.

Gadge
Lemon Pip
Posts: 65
Joined: November 4th, 2016, 10:31 pm

Re: Gadge Global Income Portfolio Dec 2106 Review

Postby Gadge » December 26th, 2016, 8:59 am

https://www3.hants.gov.uk/finance/retai ... eindex.htm

This linked page shows YOY RPI Oct to Oct at 2%.

Next year, I will use YOY to DEC as the measure of RPI against GGIP.

Gadge
Lemon Pip
Posts: 65
Joined: November 4th, 2016, 10:31 pm

Re: Gadge Global Income Portfolio Dec 2106 Review

Postby Gadge » December 26th, 2016, 9:20 am

Hi Forlesen,

http://boards.fool.co.uk/global-income- ... e#13413279

I have checked the transactions this morning and in fact,
GGIP was setup/bought on 26th July by itsallaguess (except MYI which was bought using a date of 25th July.
Price he paid for HFEL was 330p.

I can see a 5.10p dividend from HFEL which was received on the 4th Aug.

Apologies for my review error above stating that the GGIP was setup in August.
I must remember to give the sherry a miss for next year's review :-)

You are correct in your assumption that there may be some errors re divs received though due to record dates and payment dates.
I am simply working on the basis that what the FT records as a div is correct. Over time any small errors caused by this will work in both directions. So things should even out as I make sales that then don't receive later Divs which we would have got in real life.

Gadge

todthedog
Posts: 25
Joined: November 4th, 2016, 4:24 pm

Re: Gadge Global Income Portfolio Dec 2106 Review

Postby todthedog » December 27th, 2016, 3:40 pm

Good work Gadge.
All the best


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