Monthly income

TCA

JohnRo wrote: »

So Catherine is clearing off, or was she pushed? It sounds like the whole London Mining fiasco really has given them all a huge kick up the !!!!, hopefully it spurs them on to greater things in future.

Hopefully! A bit more on Raw's departure here below:

http://citywire.co.uk/money/raw-quits-blackrock-world-mining/a804803?ref=citywire-money-latest-news-list

JohnRo

In a perverse way I'm quite bullish about the BRWM debacle which might still work to my advantage, assuming they get themselves sorted out, which I expect they will.
With mining generally struggling this just adds an extra opportunity on top which in the grand longer term scheme may prove to be a welcome boost.

JohnRo

DAY 667

Bit of a dilemma, time to start quarterly top ups and AAIF is top of the list but it appears to be turning into a bit of a dog. I know that's possibly a good thing and not necessarily a bad thing, but the income is also quite low for an income fund and for the region as well which is a major selection consideration.

So, this may be flawed logic and I'd appreciate views on it but thinking of using the AAIF top up to purchase HFEL instead and set up a three way regional investment between these trusts. I realise I may face the same problem again in a couple of years if AAIF continues its lacklutre path but perhaps at that point I'll at least have gained with HFEL, if recent performance is indicative of a trend.

I'm aware of "diworsification" but there is also the thought that unless there is some sort of universal regional mean value to which all fund valuations are always ultimately linked, then significant gains in one fund over another won't necessarily be reversed over time as they eventually revert back to this imaginary mean and may be far more related to the management decisions taken.

I'd also like to extend this theme to the US and Europe but finding suitable vehicles isn't proving easy and will wait for now, I've been less than impressed with NAIT given the general trend in the US market over the last couple of years though.

One other addition is TRIG, a bit quirky but I think the sector has legs much like biotech, without the explosive growth but the income qualifies. The theme appeals to me personally so it's on the radar for possible inclusion some time next year and is on a more attractive premium than other more traditional infrastructure.

Talking of premiums, SLI was high when I bought and it's more than doubled, are very high premiums a signal to trim back?

I've set up a weighted allocation based on the target and the premium or discount so it should be covered in terms of the portfolio as a whole.

Anyway here's the plan. Whether it all proves a lot of faffing about for nothing will have to be seen. Cheers.

TCA

JohnRo wrote: »

Bit of a dilemma, time to start quarterly top ups and AAIF is top of the list but it appears to be turning into a bit of a dog. I know that's possibly a good thing and not necessarily a bad thing, but the income is also quite low for an income fund and for the region as well which is a major selection consideration.

AAIF is sitting about break-even for me, whereas SOI is about 16% up in the same period, so I know what you mean. HFEL was on my watchlist for a long time but I went off it for some reason. Can't recall why - maybe the paying of dividends from capital didn't sit well with me. It still looks a good way to get some chunky China exposure mind you.

Don't know if you've seen the last announcement from AAIF, but the next three interim dividends will be 2p (2014: 1.8p), albeit slightly tempered by the fact that the final dividend might only be 2p as well:

Aberdeen Asian Income Fund Limited (the "Company") 16 April 2015
Declaration of First Interim Dividend

The Directors of the Company have today declared a first interim dividend in respect of the year ending 31 December 2015 of 2.0p per Ordinary share of No Par Value (2014: 1.8p). The first interim dividend has been increased as part of an exercise to rebalance the level of the quarterly dividends and, in the absence of unforeseen circumstances, the Board expects to pay three interim dividends of 2.0p followed by a fourth interim dividend of at least 2.0p in respect of the year ending 31 December 2015 (2014: four quarterly dividends paid totalling 8.0p).

The first interim dividend will be payable on 22 May 2015 to Ordinary shareholders on the register on 1 May 2015, ex-dividend date 30 April 2015.

JohnRo

Yes I have the dividend info included in the spread sheet, I've no intention of getting rid of AAIF and will be topping up at some point but I also want to give HFEL a shot and figure now is as good a time as any, even though it has risen quite sharply in recent weeks, given that AAIF seems stuck in a prolonged, lacklustre rut of late, also the additional HFEL income might prove more beneficial if there is a pullback in the markets at some point in the near future or things start to flatten off across the board.

There's an article at the foot of the AAIF trustnet page about Mr. Young and his Asian funds which helped convince me to give Henderson a slice of the allocation this round. It's a little dated but still entirely relevant.

Having three investment streams in the region also gives me a little more confidence should something like the BRWM debacle hit any one of them, as unlikely as that is.

The one thing lacking that I would like some sort of exposure to is Japan but there seems nothing equity income oriented that fits what I'm looking for.

Still keeping an eye on BEE for something European to make the three and something else US/NA, perhaps a dividend aristocrats type ETF as a complement and trim the NAIT and ALAI exposure slightly, no firm plans though and always subject to change, not this year though.

My regional index / specialist growth portfolio performance is crushing this one but I suspect the tables will turn if / when things start to head south.

Speaking of trustnet, I long ago predicted they'd start to hide the better website tools behind a paywall. [STRIKE]Have they killed off the chart comparison tool or is it me that can't see how to get there for looking?[/STRIKE] Oh nvm its in the portfolio tools where it always was...

JohnRo

DAY 710 - update for those interested.

Reinvested income is starting to show it's worth. Bit the bullet on HFEL and PEW, next up BRCI and TRIG then that'll be the full set and it'll just be rebalancing of existing next time around. No plans to add anything new this next year or two.

Valuation & Statement

TCA

Thanks for the update John. BRCI is one that's got my attention again. Currently showing a tidy 7% yield on Morningstar and not far off its 52-week share price low, albeit on a 2% premium. Perhaps a double-play on low oil prices and low commodity prices. I don't feel like topping up my BRWM holding, so this could be a decent alternative.

Had a bit of deja vu there and just checked the previous page of posts to find I said the same thing in January. Lol. At least I'm consistent.

JohnRo

Spreadsheet says it's time for BRCI & TRIG. I have a couple of weeks to decide on the purchases or leave well alone for the foreseeable. July / Aug are (relatively) big dividend months so the boost to the new money in will be substantial this next round , not sure I want to be increasing exposure to the energy sector above what's already held but the dilemma I have is that any such decision is going against the plan and introducing emotion.

The recent government backpeddling on renewable energy subsidies raises some concerns about future intent and commitment when fast buck frackers are circling, although this might just prove a good opportunity to get in.

Problem is I'm not convinced commodities and energy in general are anywhere near the so called bottom of their price range given the global slowdown and looming malinvestment and public/private debt crisis when or if some sort of normal market function is ever resumed.

I read this today from Stockman, he always peers into the doom and gloom but the arguments are very well made.

For the UK I'm leaning towards ditching MRCH despite the decent yield and reallocating that slice to SLET along with an EDIN rebalance, that'll trim the number of UK trusts held and take care of three of the eight trades remaining this FY.

I've also decided to put PEY on watch for a bit more diversification and still looking for a suitable EU and NA income addition.

Only reasonable candidates I see there are BEE and BRNA, I'll perhaps trim the NAIT exposure and up BRNA to a 4% weighting when it gets around that time.

TCA

JohnRo wrote: »

Spreadsheet says it's time for BRCI & TRIG.

BRCI has certainly taken a mauling today, along with most Asian and Emerging Market stocks. Down to 69p per share.

JohnRo

I've decided BRCI is going to have to wait indefinitely, I have enough exposure to the fossil fuels sector already and I'm not convinced it's future is very bright in investment terms. I've enough to go at over the next few months/years repairing BRWM and ALAI so don't want to be adding any more weight to the higher risk elements right now. That said TRIG is still on the cards next round.