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vand's income portfolio

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vand
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vand's income portfolio

#470727

Postby vand » January 6th, 2022, 9:50 am

As of 06/01/22

Ticker	Value as % of Total	Latest / Forecast Yield
NESF 13.72% 6.90%
BATS 13.60% 8.30%
LGEN 7.55% 6.30%
IMB 5.77% 8.70%
BSIF 5.73% 6.40%
AV 5.65% 5.90%
DLG 5.36% 8.10%
VOD 5.08% 6.80%
FSFL 4.56% 6.80%
MONY 4.29% 5.70%
MNG 3.94% 8.70%
HL 3.89% 3.20%
HSBA 3.24% 4.50%
GSK 3.10% 3.50%
RIO 3.09% 8.90%
NWG 2.83% 4.30%
ULVR 2.83% 3.70%
BLND 2.79% 3.80%
LAND 2.03% 4.90%
BARC 0.96% 4.30%

Total yield: 6.55% (est)


Although it's mainly an income play, stability and growth are important too, so I'm looking for something that will produce good risk adjusted returns while still delivering an income stream.

I'm still in accumulation process, so will be building this up over the next few years. All dividends will be reinvested, naturally.

I also consider the Renewable Energy funds (NESF, BSIF, FSFL) to be almost a fixed-income replacement but with much higher yield and also inflation adjusting.

idpickering
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Re: vand's income portfolio

#470733

Postby idpickering » January 6th, 2022, 10:08 am

vand wrote:As of 06/01/22

Ticker	Value as % of Total	Latest / Forecast Yield
NESF 13.72% 6.90%
BATS 13.60% 8.30%
LGEN 7.55% 6.30%
IMB 5.77% 8.70%
BSIF 5.73% 6.40%
AV 5.65% 5.90%
DLG 5.36% 8.10%
VOD 5.08% 6.80%
FSFL 4.56% 6.80%
MONY 4.29% 5.70%
MNG 3.94% 8.70%
HL 3.89% 3.20%
HSBA 3.24% 4.50%
GSK 3.10% 3.50%
RIO 3.09% 8.90%
NWG 2.83% 4.30%
ULVR 2.83% 3.70%
BLND 2.79% 3.80%
LAND 2.03% 4.90%
BARC 0.96% 4.30%

Total yield: 6.55% (est)


Although it's mainly an income play, stability and growth are important too, so I'm looking for something that will produce good risk adjusted returns while still delivering an income stream.

I'm still in accumulation process, so will be building this up over the next few years. All dividends will be reinvested, naturally.

I also consider the Renewable Energy funds (NESF, BSIF, FSFL) to be almost a fixed-income replacement but with much higher yield and also inflation adjusting.


Very interesting HYP, thanks for sharing it with us. As for new shares, have you thought about doubling up on mining shares? BHP may well be an option for you? I hold them alongside Rio Tinto, a share (RIO) I intend topping up soon.

Ian.

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Re: vand's income portfolio

#470734

Postby Arborbridge » January 6th, 2022, 10:13 am

vand wrote:As of 06/01/22

Ticker	Value as % of Total	Latest / Forecast Yield
NESF 13.72% 6.90%
BATS 13.60% 8.30%
LGEN 7.55% 6.30%
IMB 5.77% 8.70%
BSIF 5.73% 6.40%
AV 5.65% 5.90%
DLG 5.36% 8.10%
VOD 5.08% 6.80%
FSFL 4.56% 6.80%
MONY 4.29% 5.70%
MNG 3.94% 8.70%
HL 3.89% 3.20%
HSBA 3.24% 4.50%
GSK 3.10% 3.50%
RIO 3.09% 8.90%
NWG 2.83% 4.30%
ULVR 2.83% 3.70%
BLND 2.79% 3.80%
LAND 2.03% 4.90%
BARC 0.96% 4.30%

Total yield: 6.55% (est)


Although it's mainly an income play, stability and growth are important too, so I'm looking for something that will produce good risk adjusted returns while still delivering an income stream.

I'm still in accumulation process, so will be building this up over the next few years. All dividends will be reinvested, naturally.

I also consider the Renewable Energy funds (NESF, BSIF, FSFL) to be almost a fixed-income replacement but with much higher yield and also inflation adjusting.


Looks like some couragious outliers there. Better call this one "HYP-ish" ;)

Arb.

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Re: vand's income portfolio

#470735

Postby idpickering » January 6th, 2022, 10:23 am

Further go my last, I see that you've only just joined TLF. Welcome to the boards, and to HYP Practical Board too!

Ian.

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Re: vand's income portfolio

#470745

Postby Dod101 » January 6th, 2022, 10:45 am

vand wrote:As of 06/01/22

Ticker	Value as % of Total	Latest / Forecast Yield
NESF 13.72% 6.90%
BATS 13.60% 8.30%
LGEN 7.55% 6.30%
IMB 5.77% 8.70%
BSIF 5.73% 6.40%
AV 5.65% 5.90%
DLG 5.36% 8.10%
VOD 5.08% 6.80%
FSFL 4.56% 6.80%
MONY 4.29% 5.70%
MNG 3.94% 8.70%
HL 3.89% 3.20%
HSBA 3.24% 4.50%
GSK 3.10% 3.50%
RIO 3.09% 8.90%
NWG 2.83% 4.30%
ULVR 2.83% 3.70%
BLND 2.79% 3.80%
LAND 2.03% 4.90%
BARC 0.96% 4.30%

Total yield: 6.55% (est)


Although it's mainly an income play, stability and growth are important too, so I'm looking for something that will produce good risk adjusted returns while still delivering an income stream.

I'm still in accumulation process, so will be building this up over the next few years. All dividends will be reinvested, naturally.

I also consider the Renewable Energy funds (NESF, BSIF, FSFL) to be almost a fixed-income replacement but with much higher yield and also inflation adjusting.


I do not recognise a number of these tickers but I am interested in why you use the expression 'good risk adjusted returns'. What adjustments to you make to allow for risk?

Dod

vand
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Re: vand's income portfolio

#470756

Postby vand » January 6th, 2022, 11:32 am

Slight error in the original post, I hold about 3 times as much BARC as I had listed, so weighting is around 3%. Doesn't change much overall though.

@idpickering, thanks for the welcome. Yes, for the "risk adjusted" part I consider the FTSE350 TR my benchmark, and trying to beat it with less volatility, or (more realistically considering the number of holdings) outperform it with similar volatility, basically trying to achieve a better sharpe/sortino ratio.

As for mining shares, RIO has done very well for me and am not against adding more, or perhaps BHP to hedge my bets. However I do also hold the JPM Natural Resources fund as a part of a different strategy I run, so I have that going on too.

I'd like to add a housebuilder too and have PSN on my watchlist, but I prefer to run a more concentrated portfolio of around 20 holdings max.

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Re: vand's income portfolio

#470760

Postby 88V8 » January 6th, 2022, 11:37 am

vand wrote:....I prefer to run a more concentrated portfolio of around 20 holdings max.

Yes, welcome.

If you can keep it to twenty, you'll have managed an act of will-power that defeats many of us :)

V8

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Re: vand's income portfolio

#470888

Postby funduffer » January 6th, 2022, 4:24 pm

Interesting that you have 3 solar funds (NESF, BSIF and FSFL).

I also like renewable energy, but I have gone for one solar (NESF), one wind (UKW) and one general infrastructure with a lot of renewables (GCP).

They are very bond-like, with high yields and generally rising dividends.

Is there a reason you prefer solar to other renewables (wind, battery storage, biomass etc...)?

FD

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Re: vand's income portfolio

#470895

Postby idpickering » January 6th, 2022, 4:37 pm

funduffer wrote:Interesting that you have 3 solar funds (NESF, BSIF and FSFL).

I also like renewable energy, but I have gone for one solar (NESF), one wind (UKW) and one general infrastructure with a lot of renewables (GCP).

They are very bond-like, with high yields and generally rising dividends.

Is there a reason you prefer solar to other renewables (wind, battery storage, biomass etc...)?

FD


Well said funduffer. I noticed that too. I had looked at them when Malcolm MDW pointed them out to me a while back but they looked a bit small for my taste market cap wise, but each to their own. I'm very keen on the sector too, mind you, where I live up here in Orkney, there's plenty of wind to get those turbines spinning! :D I hold SSE, Greencoat UK Wind and The Renewables Infrastructure Group, all of which are big in wind energy. I'm buying more UKW on 20 Jan 22 too.

Ian.

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Re: vand's income portfolio

#470910

Postby vand » January 6th, 2022, 5:13 pm

funduffer wrote:Interesting that you have 3 solar funds (NESF, BSIF and FSFL).

I also like renewable energy, but I have gone for one solar (NESF), one wind (UKW) and one general infrastructure with a lot of renewables (GCP).

They are very bond-like, with high yields and generally rising dividends.

Is there a reason you prefer solar to other renewables (wind, battery storage, biomass etc...)?

FD


There are a few reasons I own so much solar.

First, I was very keen to get a solar PV system for my own home, when I ran the numbers then it just made more sense for me to buy a solar fund instead. Plus, I didn't really have the free cash at the time so I bought them from my SIPP as a very roundabout way of getting the same benefit in terms of outlay/cashflow.

They're a pretty new addition, acquired in the last few months as I've been dumping my fixed income allocation which is looking increasingly unattractive as inflation begins to soar. I wanted something low beta and they looked a relative bargain trading around NAV whereas in the past they have had traded at a reasonable premium.

Personally I haven't research other types of renewable funds very much, so I stick with what I feel I know well -- solar is easy to understand, and as a replacement for bonds I greatly appreciate its simplicity.

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Re: vand's income portfolio

#470999

Postby moorfield » January 6th, 2022, 8:58 pm

vand wrote:
I'd like to add a housebuilder too and have PSN on my watchlist, but I prefer to run a more concentrated portfolio of around 20 holdings max.


I am still aspiring to this - currently 23 holdings / 18 sectors. Your post has reminded me that I must look again at some of those quasi reits, thanks.

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Re: vand's income portfolio

#471022

Postby MDW1954 » January 6th, 2022, 10:48 pm

vand wrote:Personally I haven't research other types of renewable funds very much, so I stick with what I feel I know well -- solar is easy to understand, and as a replacement for bonds I greatly appreciate its simplicity.


Seriously, IDP has a point: look at Greencoat UK Wind (LSE: UKW). Most HYP-ish.

MDW1954

PS: And welcome back to the HYP-P board! Gremlin attack, but I coughed discreetly in the right places...

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Re: vand's income portfolio

#471051

Postby idpickering » January 7th, 2022, 3:58 am

MDW1954 wrote:
Seriously, IDP has a point: look at Greencoat UK Wind (LSE: UKW). Most HYP-ish.

MDW1954

PS: And welcome back to the HYP-P board! Gremlin attack, but I coughed discreetly in the right places...


I’m honoured thank you Malcolm, and thanks also for your continued input on these matters. In fact, going forward, I might just have another look at those more solar focussed HYP acceptable quasi ITs.

Ian.

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Re: vand's income portfolio

#471191

Postby 88V8 » January 7th, 2022, 4:29 pm

vand wrote:
funduffer wrote:Interesting that you have 3 solar funds (NESF, BSIF and FSFL).

.... as a replacement for bonds I greatly appreciate its simplicity.

These three ITs have traded within a remarkably tight band over the last five years. As you say, almost a bond replacement.

NESF has 26% gearing. None of them has any reserves as far as one can see from the AIC summary, otoh none has cut the divi during the panpanic.
Indeed worth a look as a pure income play.

V8

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Re: vand's income portfolio

#471257

Postby MDW1954 » January 7th, 2022, 7:59 pm

88V8 wrote:
vand wrote:
funduffer wrote:Interesting that you have 3 solar funds (NESF, BSIF and FSFL).

.... as a replacement for bonds I greatly appreciate its simplicity.

These three ITs have traded within a remarkably tight band over the last five years. As you say, almost a bond replacement.

NESF has 26% gearing. None of them has any reserves as far as one can see from the AIC summary, otoh none has cut the divi during the panpanic.
Indeed worth a look as a pure income play.

V8


Be careful. Some of these infrastructure shares are formally ITs (eg Greencoat UK Wind), and some are investment companies. So requirements vary.

But, as has been said, very bond-like.

MDW1954

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Re: vand's income portfolio

#471340

Postby 88V8 » January 8th, 2022, 10:20 am

MDW1954 wrote:
88V8 wrote:
funduffer wrote:Interesting that you have 3 solar funds (NESF, BSIF and FSFL).

These three ITs.....

Be careful. Some of these infrastructure shares are formally ITs (eg Greencoat UK Wind), and some are investment companies. So requirements vary.

Yes.
I take the (lazy) view that if they come up in the AIC company search https://www.theaic.co.uk/aic/find-compare-investment-companies they must be an IT, but there are indeed Cos out there that sound like an IT but aren't.
CLIG City of London Investment has done well for me but they're not an IT....

V8

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Re: vand's income portfolio

#471562

Postby funduffer » January 9th, 2022, 3:12 pm

MDW1954 wrote:
Be careful. Some of these infrastructure shares are formally ITs (eg Greencoat UK Wind), and some are investment companies. So requirements vary.

But, as has been said, very bond-like.

MDW1954


Perhaps you could enlighten me on the major differences?

Presumably, an IT invests in the shares of other companies, whereas an investment company invests in the assets themselves. Similarly, a REIT invests in the assets (property) themselves. I know all 3 are different in some ways, but what difference does it make to the investor?

Disclosure - I own REIT's, IT's and some of the investment companies mentioned here.

FD

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Re: vand's income portfolio

#471751

Postby vand » January 10th, 2022, 1:03 pm

I took profits on my BARC position and bought PSN.

The banks have had a great run in the last year, and I'm still happy to hold onto my HSBA and NWG.

Regarding the Solar funds, I'm really quite happy to not include them in my portfolio for purposes of HYP discussion. In fact I'm really in two minds about which strategy I should include them in.

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Re: vand's income portfolio

#482980

Postby vand » February 26th, 2022, 4:16 pm

Have been adding to the HYP quite aggressively in this little downturn. Current status of the portfolio:

BATS	12.51%
NESF 10.33%
BSIF 7.55%
LGEN 7.63%
FSFL 6.33%
IMB 4.56%
VOD 4.55%
ULVR 4.43%
PSN 4.33%
AV 4.33%
DLG 4.30%
PHNX 3.35%
BDEV 3.32%
MONY 3.14%
MNG 3.09%
HSBA 2.86%
RIO 2.66%
HL 2.48%
GSK 2.34%
NWG 2.16%
BLND 2.13%
LAND 1.63%


Estimated forward yield: 6.85%, according to the HYPTUSS (which is fabulous - thank you to whoever is responsible!)

Since start of year have bought/added

PSN (new)
BSIF
LGEN
FSFL
ULVR
PHNX (new)
BDEV (new)

sold:

BARC


****

Anyone else find that their HYP is stuffed full of insurance companies?

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Re: vand's income portfolio

#482996

Postby idpickering » February 26th, 2022, 5:30 pm

vand wrote:Have been adding to the HYP quite aggressively in this little downturn. Current status of the portfolio:

BATS	12.51%
NESF 10.33%
BSIF 7.55%
LGEN 7.63%
FSFL 6.33%
IMB 4.56%
VOD 4.55%
ULVR 4.43%
PSN 4.33%
AV 4.33%
DLG 4.30%
PHNX 3.35%
BDEV 3.32%
MONY 3.14%
MNG 3.09%
HSBA 2.86%
RIO 2.66%
HL 2.48%
GSK 2.34%
NWG 2.16%
BLND 2.13%
LAND 1.63%


Estimated forward yield: 6.85%, according to the HYPTUSS (which is fabulous - thank you to whoever is responsible!)

Since start of year have bought/added

PSN (new)
BSIF
LGEN
FSFL
ULVR
PHNX (new)
BDEV (new)

sold:

BARC


****

Anyone else find that their HYP is stuffed full of insurance companies?



Thanks for keeping us up to date with your investing.
I’ve just brought Persimmon into my HYP recently, so great minds and all that. ;)

As for the insurance sectors, of whatever ilk, I’ve not topped up any of my holdings in that overall sector for a while. I hold PHNX, ADM, and LGEN. My account is currently set to buy more PHNX next month funnily enough,but that might change by then.

Ian.


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