Constructing an hyp (no capitals)
Posted: June 9th, 2020, 3:10 pm
Pulling part of a post by Wizard on going about constructing an "HYP" from scratch, that I thought was very interesting.
I wanted to divert the topic somewhat, and thought it impolite to do so on the main thread, so starting a new one.
My question is "What would you do from scratch for a high yield portfolio (no capitals), where both reliability track record and safety through diversity are important?"
Note that for this portfolio, I am assuming that some of the HYPyadic-P rules are relaxed: can go for ITs & F.I.to achieve additional diversity
From
viewtopic.php?p=316714#p316714
Wizard suggested:
So assuming you want to try and stay above £1b market capital the list is:
1. Standard Life Aberdeen - Investment Banking and Brokerage Services - 7.68%
2. Babcock International - Aerospace and Defence - 6.71%
3. British American Tobacco - Tobacco - 6.74%
4. Rio Tinto - Industrial Metals and Mining - 6.59%
5. IG Group - Investment Banking and Brokerage Services - 5.65%
6. National Grid - Gas, Water and Multi-utilities - 5.09%
7. GlaxoSmithKline - Pharmaceuticals and Biotechnology - 4.88%
8. Tate & Lyle - Food Producers - 4.26
9. United Utilities Group - Gas, Water and Multi-utilities - 4.56%
10. Legal & General - Life Insurance - 6.97%
11. Phoenix Group Holdings - Life Insurance - 6.82%
12. BHP - Industrial Metals and Mining - 6.52%
13. Vistry - Household Goods and Home Construction - 6.91%
14. NextEnergy Solar Fund - Closed End Investments - 6.51%
15. Workspace Group - REIT - 4.57
For the purposes of diversification, I am assuming that IG Group, Phoenix and BHP are ruled out. I think that United Utilities and NG are sufficiently differentiated that both are permissable. this takes it to 12
How else would one achieve additional safety through diversification?
What comes to mind are:
Geographic diversity: Henderson Far East Ltd (HFEL) and Murray International (MYI) Investment Trusts
Infrastructure: HICL
Property - covered by REIT?
Where else would one look?
And how many holdings to feel balanced?
I wanted to divert the topic somewhat, and thought it impolite to do so on the main thread, so starting a new one.
My question is "What would you do from scratch for a high yield portfolio (no capitals), where both reliability track record and safety through diversity are important?"
Note that for this portfolio, I am assuming that some of the HYPyadic-P rules are relaxed: can go for ITs & F.I.to achieve additional diversity
From
viewtopic.php?p=316714#p316714
Wizard suggested:
So assuming you want to try and stay above £1b market capital the list is:
1. Standard Life Aberdeen - Investment Banking and Brokerage Services - 7.68%
2. Babcock International - Aerospace and Defence - 6.71%
3. British American Tobacco - Tobacco - 6.74%
4. Rio Tinto - Industrial Metals and Mining - 6.59%
5. IG Group - Investment Banking and Brokerage Services - 5.65%
6. National Grid - Gas, Water and Multi-utilities - 5.09%
7. GlaxoSmithKline - Pharmaceuticals and Biotechnology - 4.88%
8. Tate & Lyle - Food Producers - 4.26
9. United Utilities Group - Gas, Water and Multi-utilities - 4.56%
10. Legal & General - Life Insurance - 6.97%
11. Phoenix Group Holdings - Life Insurance - 6.82%
12. BHP - Industrial Metals and Mining - 6.52%
13. Vistry - Household Goods and Home Construction - 6.91%
14. NextEnergy Solar Fund - Closed End Investments - 6.51%
15. Workspace Group - REIT - 4.57
For the purposes of diversification, I am assuming that IG Group, Phoenix and BHP are ruled out. I think that United Utilities and NG are sufficiently differentiated that both are permissable. this takes it to 12
How else would one achieve additional safety through diversification?
What comes to mind are:
Geographic diversity: Henderson Far East Ltd (HFEL) and Murray International (MYI) Investment Trusts
Infrastructure: HICL
Property - covered by REIT?
Where else would one look?
And how many holdings to feel balanced?