Different ways of taking income

[dealtn]

The 2021 Barclays Equity Gilt study says this in relation to UK equities:

Figure 9 and Figure 10 show how reinvestment of income affects the performance of the various
asset classes. Figure 9 shows £100 invested at the end of 1899 without reinvesting income; the
second is with reinvestment. £100 invested in equities at the end of 1899 would be worth just
£167 in real terms without the reinvestment of dividend income; however, with reinvestment,
the portfolio would have grown to £32,025.

Is it news to anybody that a bath fills quicker with the plug in?

[Bagger46]

The 2021 Barclays Equity Gilt study says this in relation to UK equities:

Figure 9 and Figure 10 show how reinvestment of income affects the performance of the various
asset classes. Figure 9 shows £100 invested at the end of 1899 without reinvesting income; the
second is with reinvestment. £100 invested in equities at the end of 1899 would be worth just
£167 in real terms without the reinvestment of dividend income; however, with reinvestment,
the portfolio would have grown to £32,025.

Is it news to anybody that a bath fills quicker with the plug in?

Quite agree, dealt, obvious. as you say. I like your bath analogy, but it is very basic underlying maths anyway, no need for any complicated effort by Barclays or anybody.

But of course NotHim.., who is in fact Rob Munro, a FUND MANAGER, is known for quoting anything and everything. It is a shame that he cannot put any of this knowledge properly in practice. His so called Smart Fund (VT MUNRO SMART-BETA ) has returned a paltry 3.11% compound, income reinvested, since inception on 14/09/2007 ( which is basically ZILCH if one takes RPI into account). So in his case reinvestment of divi have not compensated for a dreadful capital performance. Blind HY investing( some would say absolutely ridiculous in the underlying method in his case), has been a disastrous approach, as it so often is in my experience.

Regards

Bagger

[Dod101]

The 2021 Barclays Equity Gilt study says this in relation to UK equities:

Figure 9 and Figure 10 show how reinvestment of income affects the performance of the various
asset classes. Figure 9 shows £100 invested at the end of 1899 without reinvesting income; the
second is with reinvestment. £100 invested in equities at the end of 1899 would be worth just
£167 in real terms without the reinvestment of dividend income; however, with reinvestment,
the portfolio would have grown to £32,025.

Simply illustrating the power of compounding and telling us nothing........especially nothing about 'Different ways of taking income'

Dod

[moorfield]

The 2021 Barclays Equity Gilt study says this in relation to UK equities:

Figure 9 and Figure 10 show how reinvestment of income affects the performance of the various
asset classes. Figure 9 shows £100 invested at the end of 1899 without reinvesting income; the
second is with reinvestment. £100 invested in equities at the end of 1899 would be worth just
£167 in real terms without the reinvestment of dividend income; however, with reinvestment,
the portfolio would have grown to £32,025.

Simply illustrating the power of compounding and telling us nothing........especially nothing about 'Different ways of taking income'

Dod

It does tell us something useful, that the annualized return rate of that reinvestment exercise has been 4.84%. That might be of use to those attempting to forecast for the long term, but agree nothing about 'Different ways of taking income'.

[Dod101]

The 2021 Barclays Equity Gilt study says this in relation to UK equities:

Figure 9 and Figure 10 show how reinvestment of income affects the performance of the various
asset classes. Figure 9 shows £100 invested at the end of 1899 without reinvesting income; the
second is with reinvestment. £100 invested in equities at the end of 1899 would be worth just
£167 in real terms without the reinvestment of dividend income; however, with reinvestment,
the portfolio would have grown to £32,025.

Simply illustrating the power of compounding and telling us nothing........especially nothing about 'Different ways of taking income'

Dod

It does tell us something useful, that the annualized return rate of that reinvestment exercise has been 4.84%. That might be of use to those attempting to forecast for the long term, but agree nothing about 'Different ways of taking income'.

Good for you. You always seem to manage to put these numbers into perspective. I suppose that is a reasonable enough return through thick and thin over that many years.

Dod

[OhNoNotimAgain]

Also from BEGS 2021

Figure 2 breaks down real asset returns for consecutive 10-year intervals. UK equities
underperformed gilts over the past decade with an average annualised return of 2.9%
compared to the gilt return of 3.8%. 2020’s poor performance depressed equity returns for the
decade. Cash had the worst decade since the stagflationary 1970s

[GoSeigen]

[...]
But of course NotHim.., who is in fact Rob Munro, a FUND MANAGER, is known for quoting anything and everything. It is a shame that he cannot put any of this knowledge properly in practice. His so called Smart Fund (VT MUNRO SMART-BETA ) has returned a paltry 3.11% compound, income reinvested, since inception on 14/09/2007 ( which is basically ZILCH if one takes RPI into account).[...]

Was he not sacked from management of this fund a couple of years back? He is not listed in the staff of the manager of the fund.

I think he may have joined the ranks of private investors, in which case we could cut him a bit of slack, no?


GS

[Bagger46]

[...]
But of course NotHim.., who is in fact Rob Munro, a FUND MANAGER, is known for quoting anything and everything. It is a shame that he cannot put any of this knowledge properly in practice. His so called Smart Fund (VT MUNRO SMART-BETA ) has returned a paltry 3.11% compound, income reinvested, since inception on 14/09/2007 ( which is basically ZILCH if one takes RPI into account).[...]

Was he not sacked from management of this fund a couple of years back? He is not listed in the staff of the manager of the fund.

I think he may have joined the ranks of private investors, in which case we could cut him a bit of slack, no?


GS

Fine, it is the season of goodwill, and I will leave him be, if he has indeed packed up doing a job he was obviously unsuited for.

Regards and seasons greetings to all,

Bagger

[OhNoNotimAgain]

I am sure the index algorithm will appreciate the season's greetings.

[DrFfybes]

The 2021 Barclays Equity Gilt study says this in relation to UK equities:

Figure 9 and Figure 10 show how reinvestment of income affects the performance of the various
asset classes. Figure 9 shows £100 invested at the end of 1899 without reinvesting income; the
second is with reinvestment. £100 invested in equities at the end of 1899 would be worth just
£167 in real terms without the reinvestment of dividend income; however, with reinvestment,
the portfolio would have grown to £32,025.

Is it news to anybody that a bath fills quicker with the plug in?

As the investor in question is over 120 years old, perhaps they needed reminding.

Paul

[OhNoNotimAgain]

As the investor in question is over 120 years old, perhaps they needed reminding.

Paul

Charities can live that long