Next miner?

[Itsallaguess]

I initially held a large number of UK-market (FTSE100 / FTSE250) income-related investments, and have consolidated most of those into a small number of UK income-IT's, mainly Merchants (MRCH), City of London (CTY), Law Debenture (LWDB), and a smaller legacy holding in Edinburgh (EDIN).

Same thing for me here.

I could sell my FTSE100 div payers for these then I'd have less holdings to worry about I guess and then I can put it with my fidelity global dividend and just have fewer dividend paying holdings.

One of the big benefits for me personally with this type of move and consolidation into a smaller number of income-related Investment Trusts, and especially where it's enabled a big shift into a more globally-diverse set of income-producing holdings, is that it's completely removed a lot of the 'noise' that's generated from single-share holdings, and it's allowed be to make a much easier 'step away' from the mundane running of my earlier single-share portfolio, which always felt that it needed much closer attention than I was ever really wanting to give it, and that's before we even get into the riskier side of simply being exposed to single-share companies when compared to the risk-based advantages of holding income-producing IT's that are then, more often than not, holding an underlying set of hugely diverse set of holdings themselves...

I'm mainly talking here about things like regular RNS news releases, and corporate actions that seem to occur much more frequently than I ever liked them to, and then of course what felt like the regular 'corporate stumbling' that seems to occur with single-share holdings over the years, and especially where holdings have been bought-up as 'yield-chasing' exercises...

Just general 'attention sapping' features of single-share holdings that I came to realise I simply had no real interest in - all I really wanted was an opportunity to invest in areas of the global market that would hopefully deliver a useful yield-based dividend income, and with a broad, cross-cycle hope that over the years, that globally diversified income would tend to generally rise, and hopefully take underlying share-prices and capital investment with it at the same time.

And that's broadly exactly how things have worked out.

There's no free-lunch, of course, and I would never look to pretend there is. There's generally lower yields available in the income-IT sphere than might be available in some similar-sector single-share options (although note my earlier mention of 'corporate stumblings' when chasing yields...), and there's additional ongoing management charges to pay, and over long periods these are going to reduce long-term returns, but all I can personally say is that those charges are something I'm happy to pay for the other benefits that I've experienced, and if there's a single thing that I'd change when looking back, it's only that I would have made that shift away from single-company shares sooner...

I wrote a more detailed post about my income-portfolio evolution here, back in 2018, and nearly five years later, over a period where continued investment into my now very-much-preferred income-IT based approach has been considerable, all I can say now is that all the views presented in it have been very much validated for me personally over the years since it was written -

The one-way HYP revolving door -

https://www.lemonfool.co.uk/viewtopic.php?f=31&t=15438

Cheers,

Itsallaguess

[kempiejon]

I too have bought into the miner collective. I've reduced my individual holdings in the sector and built a stake in BERI and BWMA. I did buy City and Murray for FTSE100 income picks but I prefer having my HYP.

I think one can take this collective idea further, I looked at investment trusts to buy green/renewable themes, for the past 2 years my new ISA allowances have gone into a global tracker from Vanguard. I also use Vanguard to buy regions like USA, Emerging Markets, Japan, Europe etc in my SIPP. I've verred from high yield now so to come back on topic there's a global income IT from Murray MYI which has been OK for me and yields 4% or so. I think IT (MYI) is ahead compared to Vanguard's global high yield ETF.

[88V8]

I too have bought into the miner collective. I've reduced my individual holdings in the sector and built a stake in BERI and BWMA.

I did hold BERI but sold them when the yield fell. Currently c3.25%.

BERI and BRWM have done nothing much in SP the last two years, but at least BRWM is still yielding >6%.

IAAG's four charts above do rather illustrate that one cannot entirely avoid the commodities cycle, even with a collective.

V8

[kempiejon]

I did hold BERI but sold them when the yield fell. Currently c3.25%.

BERI and BRWM have done nothing much in SP the last two years, but at least BRWM is still yielding >6%.

I don't know whare I got BWMA from I clearly meant BRWM. I held on to my BERI but haven't added since I changed allegances to BRWM about 4 years ago, my BERI holding has more than doubled but the income is below when I first bought it. BRWM income has nearly doubled in the same period.

[tjh290633]

I too have bought into the miner collective. I've reduced my individual holdings in the sector and built a stake in BERI and BWMA.

I did hold BERI but sold them when the yield fell. Currently c3.25%.

BERI and BRWM have done nothing much in SP the last two years, but at least BRWM is still yielding >6%.

IAAG's four charts above do rather illustrate that one cannot entirely avoid the commodities cycle, even with a collective.

V8

That, of course, is a reflection of the fact that things which affect a sector tends to affect all shares in that sector. I recently got rid of my holding in J P Morgan Natural Resources OEIC which had demonstrated that over the years since first bought as Ebor Commodity Trust in 1970. I sold it because it was my only holding outside an ISA and I felt that it was vulnerable to the coming changes in CGT and possible income tax on equities. I also needed the cash which it realised for our last cruise, and it was better than withdrawing income from my main ISA.

That, of course, covered more than just miners, including oils and some vegetable materials, and also a significant interest in gold.

As it is, my holdings in Rio, BHP and S32 in my ISA are enough, alongside BP, SHEL and Woodside in the oil sector.

TJH

[richfool]

There is a portfolio update on BRWM as at 31st March, showing its current holdings, via the link/thread below:

viewtopic.php?p=584052#p584052