viewtopic.php?f=15&t=27126&p=372844&hilit=Arb%27s+HYP+14th+year#p372601
Income and Capital
Income per unit increased by 25.3% but is still 7% below 2019.
Capital price (income unit) increased by 12.3% to 135.01 still well below the peak in 2016 pre-Brexit. The highest point for capital this year was in August at 136.36
Here are the incomes per unit for each year end:-
income | | | | | | | | | | |
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010
6.88 | 5.33 | 7.39 | 6.76 | 6.15 | 6.2 | 6.27 | 5.66 | 5.75 | 5.68 | 4.88 | 3.29
That's a compound growth in income of 6.9% pa since 2010.
Here are the capital values in pence per unit across the year to each Dec 31st:-
capital | | | | | | | | | | |
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010
135.01 | 120.17 | 135.68 | 120.24 | 138.65 | 140.41 | 139.16 | 137.76 | 138.50 | 126.09 | 106.66 | 110.62
A rather less than hoped for 1.8% pa, although actually better than the overall result last year.
Compared with 2020, the result has been good, and confirms the idea that HYP can provide a high and increasing income with a chance of capital gain. I realise that is not good enough for some people, and that there may be (almost certainly are) better ways of achieving growth of capital, and income. However, that description above is what it said on the tin, and it has been doing that for me over the years. Note also, that the actual capital base has increased and now is at a record high, despite the unit price not increasing so much. In other words, I am managing to fund my lifestyle but also increase my wealth.
Portfolio changes
Sales/trimming
BHP, Admiral were trimmed. Tesco and Pennon were reduced due to company actions.
New Shares
RIO and Greencoat - UK Wind were added.
Topups
At various times, the following were topped up: CSN, PHP, IMB, BAT, VOD, LGEN, ABDN. Hopefully, these codes are well known enough not to need expansion.
Charges
The following shows how charges have varied and includes dealing and annual management charges. The number of transactions was the same this year as 2020.
Income Forecast
Last year, the income forecast for 2020 was 5.41. The comment at the time was that this was problematic but might be exceeded. As things turned out, exceeded rather well as the figure for the year was 6.88. The forecast for 2121 comes out at 6.99, but this seems too conservative. As regards what to draw as salary, I have increased the payments by 5%, and will reassess midyear according to RPI and income. The amount I drew down was well covered by my total investment income (three streams, HYP ITs and OEICS) and enabled me to add to capital - which is very satisfactory in a year of covid uncertainty.
Arb.