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MDS1951 Investment Trust Portfolio Review 2021

A helpful place to also put any annual reports etc, of your own portfolios
MDS1951
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MDS1951 Investment Trust Portfolio Review 2021

#469518

Postby MDS1951 » January 1st, 2022, 8:11 am

Here we are again, after a not-quite-as-horrible-as-the year-before year; I managed to avoid the dreaded covid-19 and I hope you all did as well. I'm back volunteering at the care home where I'm lateral flow tested every day I attend plus a PCR test once a week. Negative so far!

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 2021 was £946 compared with £1,002 for 2020, a decrease of 5.6%. Part of that was the cut in Temple Bar's dividend, and I think the rest of it results from my failure to exclude the dividends paid by my VRWL ETF for 2020. Maine Coons the Lady Mina and her son the Lord Midge claim to be displeased at my error last year as it lulled them into a false sense of security! Never mind. The real point is that the dividend income didn't fall by very much in 2021.

The value of the portfolio at yesterday's closing prices is £23.2k which is an increase of 12.9% compared with its value a year ago of £20.6k. Edinburgh still continues to be the real laggard, and is the sole member of the less-than-I-paid-for-it club. Law Debenture is still 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unitised the portfolio on an income unit basis from the beginning of the portfolio because all the dividends are being withdrawn from the portfolio.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 31/12/2021 the value per unit was £6.65 compared with £5.8917 a year earlier - an increase of 12.9%. Income per unit for 2021 was 27.09p compared with 28.69p for 2020, a decrease of 5.6%.

I'm happy with the performance of my ITs in 2021 and we'll see what 2022 brings.

I'm aware that this portfolio is very FTSE UK biased, so a few years ago I decided to invest in unit trusts etc to widen the geographic spread of my collective investments. At the end of 2021 (2020 in brackets) the combined spread for all the collective investments was:-

35% (37%) UK
20% (21%) Rest of Greater Europe
33% (29%) Americas (mainly USA)
12% (13%) Greater Asia

I invested the maximum allowed under ISA rules during 2021.

Here's a link to my report for 2020.

viewtopic.php?f=56&t=27098

And so a Happy 2022 to us all.

MDS1951

Dod101
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Re: MDS1951 Investment Trust Portfolio Review 2021

#469520

Postby Dod101 » January 1st, 2022, 9:16 am

If you add no new funds and withdraw all the dividends there is no point in unitising your IT portfolio because of course each unit is just a fixed proportion of the total. It tells you nothing you did not know already.

I used to hold Edinburgh but got fed up of it. I would have expected the new man agers might have helped.

Dod

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Re: MDS1951 Investment Trust Portfolio Review 2021

#469524

Postby BullDog » January 1st, 2022, 9:31 am

Thanks for sharing. Law Debenture has been a superstar for sure, in the short term. Good luck with the basket of ITs.

Arborbridge
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Re: MDS1951 Investment Trust Portfolio Review 2021

#469525

Postby Arborbridge » January 1st, 2022, 9:46 am

Dod101 wrote:If you add no new funds and withdraw all the dividends there is no point in unitising your IT portfolio because of course each unit is just a fixed proportion of the total. It tells you nothing you did not know already.

I used to hold Edinburgh but got fed up of it. I would have expected the new man agers might have helped.

Dod



You might regret that later, though, when you make changes to the portfolio. Even selling something and buying causes a change since the amounts are hardly likely to be identical.
My advice would be to unitise from the very beginning if you have the slightest idea that you may want to compare with any other instruments in future, because it is easy to keep it going, but hard to do it retrospectively.

In any case, I believe the OP added the maximum allowable into his ISA, so maybe they were new funds.

Arb.

MDS1951
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Re: MDS1951 Investment Trust Portfolio Review 2021

#469669

Postby MDS1951 » January 2nd, 2022, 10:46 am

All the new money went into the unit trusts and the ETF - nothing was added to the Investment Trusts. I made that comment about adding the maximum to the ISA during 2020/21 to show that I am continuing to try to widen the geographic spread of my collective investments.

As to unitisation; Dod is correct to say that in itself there is no point to it if no new money is added and all dividends are withdrawn. I'll keep on doing it for myself just in case I ever add to my IT investments, but I won't report it here.

MDS1951


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