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Wasron’s annual portfolio review

A helpful place to also put any annual reports etc, of your own portfolios
88V8
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Re: Wasron’s annual portfolio review

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Postby 88V8 » May 1st, 2021, 10:40 am

Thanks for keeping this up.

Some of your HYP picks are unusual. It's good to look outside the box sometimes.
Luni always said 'don't chase the yield' and although I have some shares in the Danger Zone - BAT, IMB, DGOC for instance - I wouldn't bet the store in them

LRE, I sold for its low yield, but you have some years, many years, before you really need to worry about income.

Do agree with your emphasis on ITs.

I would be wary of planning to deplete your ISAs. Assuming they still exist when you retire of course.
Sheltering from tax is important especially if you get into HRT, and I fear will become more so, certainly if we have a change of Govt.

Never had a SIPP. We sold down a large chunk of our ISAs when we moved house ten years ago; it seemed a good idea at the time, but now we are 70% unsheltered which I regret, and there is no prospect of rectifying that situation. I now regard the ISAs as a fund of last resort. Of course, if you can become fully sheltered it does not really matter.

Looking forward to next year.

V8

moorfield
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Re: Wasron’s annual portfolio review

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Postby moorfield » May 1st, 2021, 5:48 pm

Wasron wrote:When I started the SIPP I considered putting everything into the HYP, but I didn’t feel comfortable with five figure investments in individual shares. The IT holding sizes are much larger than individual HYP shares, a conscious decision on my part as I’m happy to pay the management fee for the peace of mind that the ITs provide.



Provided that your HYP is well diversified you should be able to feel comfortable with a collection of five, or even six, figure holdings. All of my SIPP is a HYP-ish portfolio, 22 holdings currently all bar one being five figures. I often think when seeing a collection of ITs such as yours it's worthwhile totting up the top 10 holdings from each, you'd be surprised what's beneath the wrapping paper and you quite possibly already hold directly some of the largest holdings you do indirectly.

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Re: Wasron’s annual portfolio review

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Postby Wasron » May 1st, 2021, 7:05 pm

moorfield wrote:
Wasron wrote:When I started the SIPP I considered putting everything into the HYP, but I didn’t feel comfortable with five figure investments in individual shares. The IT holding sizes are much larger than individual HYP shares, a conscious decision on my part as I’m happy to pay the management fee for the peace of mind that the ITs provide.



Provided that your HYP is well diversified you should be able to feel comfortable with a collection of five, or even six, figure holdings. All of my SIPP is a HYP-ish portfolio, 22 holdings currently all bar one being five figures. I often think when seeing a collection of ITs such as yours it's worthwhile totting up the top 10 holdings from each, you'd be surprised what's beneath the wrapping paper and you quite possibly already hold directly some of the largest holdings you do indirectly.


I wrote that three years ago and I’d say I’m now at a point where I am more comfortable about breaching that limit. I certainly think I’ll be adding more to existing holdings, rather than adding new ones.

I still have a couple of holdings that may get sold in the next year, but there’s nothing really on the watchlist to replace them, which would concentrate things further

MaraMan
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Re: Wasron’s annual portfolio review

#408754

Postby MaraMan » May 2nd, 2021, 12:52 pm

Thanks for posting the update, it makes interesting reading. I retired early 3 years ago and populated my SIPP with growth IT's and held some HYP shares in my ISA for the tax free income. I am sure others have commented before but holding HYP shares in your SIPP while you are in the accummulation phase seems strange. My SIPP has done really well (48% growth in last 12 months, but of course pandemic effects have magnified any changes) and as its in draw down I just periodically sell some holdings to ensure the monthly payment is covered. Of course HYP shares may well have their days in the sun again, but unless you are taking the yield as income I don't see the point in the current economic environment. I would also echo the comment about avoiding removing money from ISAs, they are an invaluable source of tax free income. But anyway thanks for telling us about how you are doing and I wish you all the very best with your investments. I hope you enjoy your retirement when it comes as much as I have enjoyed mine.

MM

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Re: Wasron’s annual portfolio review

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Postby Wasron » May 2nd, 2021, 8:06 pm

MaraMan wrote:Thanks for posting the update, it makes interesting reading. I retired early 3 years ago and populated my SIPP with growth IT's and held some HYP shares in my ISA for the tax free income. I am sure others have commented before but holding HYP shares in your SIPP while you are in the accummulation phase seems strange. My SIPP has done really well (48% growth in last 12 months, but of course pandemic effects have magnified any changes) and as its in draw down I just periodically sell some holdings to ensure the monthly payment is covered. Of course HYP shares may well have their days in the sun again, but unless you are taking the yield as income I don't see the point in the current economic environment. I would also echo the comment about avoiding removing money from ISAs, they are an invaluable source of tax free income. But anyway thanks for telling us about how you are doing and I wish you all the very best with your investments. I hope you enjoy your retirement when it comes as much as I have enjoyed mine.

MM


48%! I wish I’d had a sizeable holding of SMT 18 months ago, but hindsight is a wonderful thing.

Regarding the HYP shares during the accumulation phase, I think I’m naturally suited to income investing, as it saves on deciding what to sell and when, but crucially the Sipp isn’t getting new money, so I would need to sell to buy if I purely invested for growth in it (and investing is a hobby, as well as the majority of my retirement plan). There is however a drift towards lower yielding investments, and that will probably continue, especially as my best performers over the year have been Johnson Matthey, Henderson Smaller Companies and JP Morgan China, none of which would fit into the HYPish low-growth, cash cow category.

My parents both retired at 55 and have since spent 15 years travelling the world. It certainly seems like an enjoyable way to live and I hope to follow in their footsteps. As long as I stay working, stay healthy, and keep investing quite conservatively I should get there, without needing to make many sacrifices along the way.

Wasron


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