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MDS1951 Investment Trust Portfolio Review 2020

A helpful place to also put any annual reports etc, of your own portfolios
MDS1951
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MDS1951 Investment Trust Portfolio Review 2020

#371992

Postby MDS1951 » January 1st, 2021, 12:17 pm

Here we are again, after a really horrible year; I hope you were all as successful at avoiding the dreaded covid-19 as I was. Mercifully the care home where I'm a temporarily furloughed volunteer managed to remain a covid-free zone during the year and I hope that stays the case for 2021.

As for last year I've copied and pasted last year's report with tweaks for the basis of this year's offering.

My IT portfolio isn't huge and consists of 10 ITs purchased for roughly £2k per IT, making a total investment of £19.9k. I used Luni's B8 and B7 lists as the basis for my choices, but I also did a little research into each IT to see how they were regarded by other Fools, financial websites etc. The ITs are:-

BMO Capital and Income B7
City of London B8
Edinburgh Investment Trust B8
Law Debenture
Lowland Investment Company B7
Merchants B8
Murray Income B8
Murray International B7
Schroder Income Growth B8
Temple Bar B8

Dividend income for the portfolio in 2020 was £1,002 compared with £959 for 2019, an increase of 4.5%. That is somewhat ahead of CPI inflation, so I'm happy with that. Maine Coons the Lady Mina and her son the Lord Midge continue to rejoice that their insurance premiums are still very nearly covered by my IT income. If anyone checks back to my report for 2019, for purposes of comparison I've used the higher income figure for 2019 because of MUT's change of payment month from January to December.

The value of the portfolio at today's closing prices is £20.6k which is a reduction of 14.5% compared with its value a year ago of £24.1k. Edinburgh continues to be the real laggard, and has been joined in the less-than-I-paid-for-it club by City, Lowland, Merchants and Temple Bar; the other ITs are worth more than I paid for them. We'll see if the 5 laggards manage to catch up in 2021. Law Debenture is turning out to be my star buy with the biggest capital gain by a wide margin, and the biggest increase in dividend income since the portfolio was completed.

I unitised the portfolio on an income unit basis from the beginning of the portfolio because all the dividends are being withdrawn from the portfolio. At 31/12/2020 the value per unit was £5.8917 compared with £6.8914 a year earlier - a decrease of 14.5%. Income per unit for 2020 however was 28.69p compared with 27.46p for 2019, an increase of 4.5%.

Given the turbulence of the markets in 2020 I'm happy with the performance of my ITs and we'll see what 2021 brings.

Here's a link to my report for 2019. viewtopic.php?f=56&t=21076

Good luck everybody for 2021!

MDS1951
Last edited by MDS1951 on January 1st, 2021, 12:20 pm, edited 1 time in total.

richfool
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Re: MDS1951 Investment Trust Portfolio Review 2020

#372011

Postby richfool » January 1st, 2021, 1:02 pm

Thanks for sharing your portfolio review MDS. A Happy New Year to you.

The main observation/thought I had is that your portfolio is rather UK-centric. Noted you hold MYI, but I would still have added more global exposure. Trusts like: JGGI, or Asian Pacific trusts like: SOI, JAGI or AAIF. All target income and growth.

JGGI - JP Morgan Global Growth & income trust
SOI - Schroder Oriental Income trust
JAGI - JP Morgan Asian growth & income trust
AAIF - Aberdeen Asian Income trust

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Re: MDS1951 Investment Trust Portfolio Review 2020

#372200

Postby tacpot12 » January 1st, 2021, 9:04 pm

Thanks for sharing details of your portfolio. I also have a retirement portfolio heavily influenced by Luniversal's posts, but I have to wait until the end of May to see whether what effect the pandemic has had on the income from the portfolio. I'll post an update here then.

MDS1951
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Re: MDS1951 Investment Trust Portfolio Review 2020

#372354

Postby MDS1951 » January 2nd, 2021, 1:21 pm

Thanks for your comments tacpot12 and richfool.

I came to the same conclusion a few years ago about my IT portfolio, so I decided to do something about it and began to invest in unit trusts and OEICs, splitting those investments between tracker and managed funds. It so happens that all these holdings (including the ITs) are in an ISA with Interactive Investor. Their X-Ray analysis of my holdings with them indicates a split of:-

37% UK
21% Rest of Greater Europe
29% Americas (mainly USA)
13% Greater Asia

I intend to carry on investing in the non-IT collective funds for the next few years so the % share of the UK in that table will continue to reduce. And next year I'll try to remember to include that little table in my annual report re the IT portfolio.


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