Portfolio Advice Requested

[evilbungle]

Good Morning, I am after some advice and hope that a few of you may be willing to help point me in the right direction.
I have been building a portfolio in a kind of adhoc way over the last 10 years or so (adding a share or two as I have had some money) Not always a true Hype selection and quite often taking advantage of what I have seen as "unfair" drops in prices (Shell, and also Tesco but I was wrong about when they would bounce back ) or taking up rights issues (Lloyds) also a few staff shareholdings (IAG and Flight Centre) - So I know this isn't a true HYP but I have included all the holdings for completeness.

The advice I am after is that I am about to receive a lump sum worth around 50% of the total portfolio and am not sure if I should just top up what I have, or if there is any glaring gaps in terms of sectors? or specific shares that may fill a missing piece of diversification.

Obviously if I was going to just top up I would try and balance my overweighting in Travel and Leisure, Banks and Oil and Gas.

Anyway, I know it is a mess. but any suggestions of where I should start looking to balance it out would be appreciated.

Current Holdings

Lloyds Banking Group | LLOY.L | Banks                           | 8.3%
Shell                | SHEL.L | Oil & Gas Producers             | 6.6%
Flight Centre        | FLT.AX | Travel and Leisure              | 6.2%
BAE                  | BA.L   | Aerospace and Defence           | 5.3%
Tesco                | TSCO.L | Food & Drug Retailers           | 4.8%
Diageo               | DGE.L  | Travel & Leisure                | 4.1%
National Grid        | NG.L   | Utilities                       | 4.1%
GlaxoSmithKline      | GSK.L  | Pharmaceuticals & Biotechnology | 4.0%
Greencoat UK Wind    | UKW.L  | Alternative Energy              | 3.9%
Aviva                | AV.L   | Life Insurance                  | 3.8%
IAG                  | IAG.L  | Travel & Leisure                | 3.8%
Games Workshop       | GAW.L  | Travel & Leisure                | 3.5%
Redde Northgate      | REDD.L | Business Services               | 3.3%
Unilever             | ULVR.L | Food Producers & Processors     | 3.2%
British Land         | BLND.L | Real Estate                     | 3.1%
Barclays             | BARC.L | Banks                           | 3.0%
BP                   | BP.L   | Oil & Gas Producers             | 3.0%
BHP Group            | BHP.L  | Mining                          | 2.9%
Hipgnosis song fund  | SONG.L | Alternative Investments         | 2.9%
HSBC                 | HSBA.L | Banks                           | 2.6%
Persimmons           | PSN.L  | Real Estate                     | 2.6%
Vodafone             | VOD.L  | Mobile Telecommunications       | 2.5%
Rio Tinto            | RIO.L  | Mining                          | 2.5%
Marstons             | MARS.L | Travel & Leisure                | 2.4%
Imperial Brands      | IMB.L  | Tobacco                         | 2.2%
Direct Line          | DLG.L  | Nonlife Insurance               | 2.0%
Carnival             | CCL.L  | Travel & Leisure                | 2.0%
Haleon               | HLN.L  | Consumer Goods                  | 0.7%
Woodside Energy      | WDS.L  | Mining                          | 0.4%

Current Sectors

Travel & Leisure                | 15.7%
Banks                           | 13.9%
Oil & Gas Producers             |  9.6%
Mining                          |  5.9%
Real Estate                     |  5.7%
Aerospace and Defence           |  5.3%
Food & Drug Retailers           |  4.8%
Utilities                       |  4.1%
Pharmaceuticals & Biotechnology |  4.0%
Alternative Energy              |  3.9%
Life Insurance                  |  3.8%
Business Services               |  3.3%
Food Producers & Processors     |  3.2%
Alternative Investments         |  2.9%
Mobile Telecommunications       |  2.5%
Tobacco                         |  2.2%
Nonlife Insurance               |  2.0%
Consumer Goods                  |  0.7%

[idpickering]

Good Morning, I am after some advice and hope that a few of you may be willing to help point me in the right direction.
I have been building a portfolio in a kind of adhoc way over the last 10 years or so (adding a share or two as I have had some money) Not always a true Hype selection and quite often taking advantage of what I have seen as "unfair" drops in prices (Shell, and also Tesco but I was wrong about when they would bounce back ) or taking up rights issues (Lloyds) also a few staff shareholdings (IAG and Flight Centre) - So I know this isn't a true HYP but I have included all the holdings for completeness.

The advice I am after is that I am about to receive a lump sum worth around 50% of the total portfolio and am not sure if I should just top up what I have, or if there is any glaring gaps in terms of sectors? or specific shares that may fill a missing piece of diversification.

Obviously if I was going to just top up I would try and balance my overweighting in Travel and Leisure, Banks and Oil and Gas.

Anyway, I know it is a mess. but any suggestions of where I should start looking to balance it out would be appreciated.

Current Holdings

Lloyds Banking Group | LLOY.L | Banks                           | 8.3%
Shell                | SHEL.L | Oil & Gas Producers             | 6.6%
Flight Centre        | FLT.AX | Travel and Leisure              | 6.2%
BAE                  | BA.L   | Aerospace and Defence           | 5.3%
Tesco                | TSCO.L | Food & Drug Retailers           | 4.8%
Diageo               | DGE.L  | Travel & Leisure                | 4.1%
National Grid        | NG.L   | Utilities                       | 4.1%
GlaxoSmithKline      | GSK.L  | Pharmaceuticals & Biotechnology | 4.0%
Greencoat UK Wind    | UKW.L  | Alternative Energy              | 3.9%
Aviva                | AV.L   | Life Insurance                  | 3.8%
IAG                  | IAG.L  | Travel & Leisure                | 3.8%
Games Workshop       | GAW.L  | Travel & Leisure                | 3.5%
Redde Northgate      | REDD.L | Business Services               | 3.3%
Unilever             | ULVR.L | Food Producers & Processors     | 3.2%
British Land         | BLND.L | Real Estate                     | 3.1%
Barclays             | BARC.L | Banks                           | 3.0%
BP                   | BP.L   | Oil & Gas Producers             | 3.0%
BHP Group            | BHP.L  | Mining                          | 2.9%
Hipgnosis song fund  | SONG.L | Alternative Investments         | 2.9%
HSBC                 | HSBA.L | Banks                           | 2.6%
Persimmons           | PSN.L  | Real Estate                     | 2.6%
Vodafone             | VOD.L  | Mobile Telecommunications       | 2.5%
Rio Tinto            | RIO.L  | Mining                          | 2.5%
Marstons             | MARS.L | Travel & Leisure                | 2.4%
Imperial Brands      | IMB.L  | Tobacco                         | 2.2%
Direct Line          | DLG.L  | Nonlife Insurance               | 2.0%
Carnival             | CCL.L  | Travel & Leisure                | 2.0%
Haleon               | HLN.L  | Consumer Goods                  | 0.7%
Woodside Energy      | WDS.L  | Mining                          | 0.4%

Current Sectors

Travel & Leisure                | 15.7%
Banks                           | 13.9%
Oil & Gas Producers             |  9.6%
Mining                          |  5.9%
Real Estate                     |  5.7%
Aerospace and Defence           |  5.3%
Food & Drug Retailers           |  4.8%
Utilities                       |  4.1%
Pharmaceuticals & Biotechnology |  4.0%
Alternative Energy              |  3.9%
Life Insurance                  |  3.8%
Business Services               |  3.3%
Food Producers & Processors     |  3.2%
Alternative Investments         |  2.9%
Mobile Telecommunications       |  2.5%
Tobacco                         |  2.2%
Nonlife Insurance               |  2.0%
Consumer Goods                  |  0.7%

Thanks for sharing your HYP with us.

I try to keep my sector weighting to a maximum of about 10%. I double up in reach sector if viable from a HYP perspective in relation to yield, cover, pe, and company debt.

If I were you I'd just let my two obviously overweight sectors be, and concentrate on investing elsewhere to lessen them being overweight in the HYP. I'm trying to be a better HYPer nowadays, so am reluctant to sell any of my holdings, so I'm not suggesting that you sell anything.

A quick glance at your HYP shows that you could maybe buy more tobacco, non-life insurance company shares foe instance?

All the best,

Ian.

[tjh290633]

Just one real comment. Your sector Travel & Leisure has five widely different shares. Marston's and Diageo have nothing in common with Games Workshop and those three have nothing in common with IAG and Flight Centre. I would split that sector into Travel and Leisure.

Having said that, I would bring the underweight shares up to median weighting (assuming that they are paying dividends- MARS is not) and maybe add a share or two at median weight after you have done that. Haleon and Woodside will take a fair chunk in any case.

TJH

[evilbungle]

A quick glance at your HYP shows that you could maybe buy more tobacco, non-life insurance company shares foe instance?

Thanks, This makes sense, I am not sure about Tobacco long term (Honestly no idea how I feel about Tobacco and what the next 20 years looks like for the industry so am quite happy with it being a low percentage,) but will definitely look at bringing my smaller sectors up to more median levels.

Just one real comment. Your sector Travel & Leisure has five widely different shares. Marston's and Diageo have nothing in common with Games Workshop and those three have nothing in common with IAG and Flight Centre. I would split that sector into Travel and Leisure.

A very good point, I think I just copied the sectors of a list somewhere when I started picking up shares but I agree the pressures on Diageo or Games Workshop are very different to IAG and Flight Centre so I have adjusted, Travel is still too large (Although these are mostly due to shares received through employment so will always be high.) but it makes more sense to consider Travel and Leisure separately.

Banks                           | 13.9%
Travel                          | 12.0%
Oil & Gas Producers             |  9.6%
Leisure                         |  6.5%
Mining                          |  5.9%
Real Estate                     |  5.7%
Aerospace and Defence           |  5.3%
Food & Drug Retailers           |  4.8%
Utilities                       |  4.1%
Pharmaceuticals & Biotechnology |  4.0%
Alternative Energy              |  3.9%
Life Insurance                  |  3.8%
Retail Non-Food                 |  3.5%
Business Services               |  3.3%
Food Producers & Processors     |  3.2%
Alternative Investments         |  2.9%
Mobile Telecommunications       |  2.5%
Tobacco                         |  2.2%
Nonlife Insurance               |  2.0%
Consumer Goods                  |  0.7%

Haleon and Woodside will take a fair chunk in any case.

Yes, I may look at these as the first option, although I seem to have Woodside down as Mining (As I received them from BHP) where as they should probably be Oil and Gas Producers which would possibly knock them off my Top Up list as adding them puts my Oil and Gas to 10%

So I guess my next top ups (Excluding current Non-Payers) would be.

Woodside Energy - Excluded due to Oil and Gas Sector
Haleon - Top Up
Carnival - Current Non-Payer
Direct Line - Top Up
Imperial Brands - Possible Top Up
Marstons - Current Non-Payer
Rio Tinto - Top Up
Vodafone - Top Up
Persimmons - Top Up

Possibly with a full weight purchase of Admiral to bring up the Non-life Insurance sector.

Thanks to both of you for giving me some direction to start looking at.

[idpickering]

Possibly with a full weight purchase of Admiral to bring up the Non-life Insurance sector.

Thanks to both of you for giving me some direction to start looking at.

You're welcome, and I wish you well with your HYP. Your plans look sound imho.

With regards to Admiral Group, which I hold, and topped up this March, they announce their interims tomorrow morning;

https://admiralgroup.co.uk/investor-rel ... l-calendar

Ian.

[Jam1]

EvilBungle, not advice and certainly not from me…. but a question (and i realise off topic, so my apologies).

Do you also maintain some Investment Trusts for an international income dimension such as NAIT, EAT, JAGI or MYI? May provide some additional diversification.

I recently asked for similar feedback on my rather eclectic higher yield portfolio. Itsallaguess I think questioned why would one top-up a HYP share instead of a UK income oriented IT if its yield was lower than an IT comparator, given I also hold the likes of MUT and MRCH. I have to admit I recently added AEI given its yield is currently 6.4% rather than topping up my HYP Shares, albeit duplicates some of your and indeed my holdings.

As Ian notes, I have doubled up in Sectors, so hold LGEN alongside AV, so topping up to balance sectors may not be the only way forwards.

Good planning!

Jam (tomorrow)

[Itsallaguess]

I recently asked for similar feedback on my rather eclectic higher yield portfolio.

Itsallaguess I think questioned why would one top-up a HYP share instead of a UK income oriented IT if its yield was lower than an IT comparator, given I also hold the likes of MUT and MRCH.

I have to admit I recently added AEI given its yield is currently 6.4% rather than topping up my HYP Shares, albeit duplicates some of your and indeed my holdings.

Hi Jam,

I think you might be thinking of this post by moorfield on your own recent portfolio-feedback thread -

https://www.lemonfool.co.uk/viewtopic.php?f=31&t=34764#p506618

Cheers,

Itsallaguess

[monabri]

Careful chaps..look where we are! ( HYP Practical).

[csearle]

Careful chaps..look where we are! ( HYP Practical).

Yes this is a bit tricky isn't it. This is not the place for either talking extensively about ITs or weening people off of HYP. On the other hand the OP might feel that his/her portfolio is more HYP than something else.

Let's see how it runs. We can always move it if it becomes clear that the thread turns out not to be about the practical running of an HYP (as defined by the guidance).

C.

[moorfield]

Careful chaps..look where we are! ( HYP Practical).

Yes this is a bit tricky isn't it. This is not the place for either talking extensively about ITs or weening people off of HYP. On the other hand the OP might feel that his/her portfolio is more HYP than something else.

No, but there is nothing wrong in posing the question here: Why are you buying this single company, for income, yielding less than this IT ?

Is there.

[csearle]

Careful chaps..look where we are! ( HYP Practical).

Yes this is a bit tricky isn't it. This is not the place for either talking extensively about ITs or weening people off of HYP. On the other hand the OP might feel that his/her portfolio is more HYP than something else.

No, but there is nothing wrong in posing the question here: Why are you buying this single company, for income, yielding less than this IT ?

Is there.

I think you are probably right. C.

PS It's about this board being for those that have bought into the HYP concept not being inundated with discussion about their being wrong. All that sort of discussion belongs elsewhere. If we can avoid that then all will hopefully be peace and harmony. C.

[Jam1]

My apologies for the distraction and also to failing to properly ascribing the Moorfield Challenge (thank you for the correction Itsallaguess).

[MDW1954]

PS It's about this board being for those that have bought into the HYP concept not being inundated with discussion about their being wrong. All that sort of discussion belongs elsewhere. If we can avoid that then all will hopefully be peace and harmony. C.

Moderator Message:
Agreed. So that's a majority of HYP-P moderators! And I'm fairly sure TJH won't have any issues, either. --MDW1954

Moderator Message:
I don't. TJH

[evilbungle]

EvilBungle, not advice and certainly not from me…. but a question (and i realise off topic, so my apologies).

Do you also maintain some Investment Trusts for an international income dimension such as NAIT, EAT, JAGI or MYI? May provide some additional diversification.

I recently asked for similar feedback on my rather eclectic higher yield portfolio. Itsallaguess I think questioned why would one top-up a HYP share instead of a UK income oriented IT if its yield was lower than an IT comparator, given I also hold the likes of MUT and MRCH. I have to admit I recently added AEI given its yield is currently 6.4% rather than topping up my HYP Shares, albeit duplicates some of your and indeed my holdings.

As Ian notes, I have doubled up in Sectors, so hold LGEN alongside AV, so topping up to balance sectors may not be the only way forwards.

Good planning!

Jam (tomorrow)

Thanks for the question, And yes I also have a basket of ITs that have an international focus (and a couple of UK focused), but I ignored them here as I was really wondering if there was any thing obvious I was missing in the individual share holdings before I started topping up (I am going to top up some ITs as well and will definitely look at your suggestions and read through the thread below when making those decisions. so thanks for the input.)