Monthly income

TCA

JohnRo wrote: »

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.

Quite right John. Similarly, given BRWM and ALAI, I think I'm parking the buying for now. With hindsight I probably bought in too heavily, with BRWM especially, but I'll ride it out. Only paper losses at this stage.

Spare cash is going towards buying a house. An asset class which I have little or no exposure to, come to think of it.

JohnRo

I'm focused on investments digging me out of the rental trap. At this stage I see a house purchase as a financial millstone I can well do without. I'm reasonably comfortable in this place, repair and maintainance bills are all but none existent save the odd pot of paint, ample private parking, and the rent is very affordable, I use credit card stoozing to pay it which also helps.

I estimate I'm about three years away from house buying calculations.

sav500

TCA wrote: »

I didn't monitor MYI at the calendar year-end but bought in when it was down to just under a 3% premium on the 3rd December. It was back up to nearer 7% when I stopped looking a week later. For about 3 weeks from mid January the premium hovered between 2% and 3%, with a couple of dips including the one I mentioned which almost wiped out the premium completely.

MYI are currently on a discount of 1.5%. Worth a punt?

JohnRo

Well. if you're going to buy MYI anyway then a discount to NAV is a better entry/top up point than a premium to NAV but that said I'm not sure MYI is the right sort of vehicle for a "punt" or that this recent discount is any sort of signal to buy.

Better to look at why it's struggling, how much lower it might go and when you think that trend might change, if you're after a punt.

Not something I have to concern myself with as it forms part of a diverse LTBH portfolio where the income generated is being ploughed back into the constituent parts, along with as much ISA allowance as my finances can support, in twelve or so trades annually, dictated by relative performance.

http://repro007.wix.com/monthlyincome

green_man

I bought MYI a few weeks ago - (down a further 5% since) I may add a bit more tomorrow if it dips further down. I think long term it should recover, though I fear there may be a dividend cut this year especially if price stays low.

JohnRo

A few additions & changes planned going forward over the next two or three years, expansion is the theme.

Looks quite bloated, arbitrary & messy but there is some method in there, in my view.

The main concern I have at the moment is dividend cuts and also an IT going belly up, the valuations are largely irrelevant beyond dictating the rebalance schedule, although I've perversely been much more comfortable with the recent falling valuations that the rising ones.

With that in mind I've decided to expand the number of holdings which might well end up achieving the exact opposite effect of that intented by increasing the possibilities for disaster but at least any one going under won't have a huge impact overall and a few years of income should cover much of any potential total loss.

It increases the cost of sale substantially but with no plans to sell anything beyond rebalancing it's not a concern.



any comments welcome, especially on FAIR and UKML

Charts
Valuations

TCA

John, a bit of news out today about ALAI, in case you haven't seen it:

[URL="http://tools.morningstar.co.uk/uk/cefreport/default.aspx?tab=3&vw=story&SecurityToken=F00000JOAL]2]0]FCGBR$$ALL&Id=F00000JOAL&ClientFund=0&CurrencyId=GBP&story=370389389911918"]http://tools.morningstar.co.uk/uk/cefreport/default.aspx?tab=3&vw=story&SecurityToken=F00000JOAL]2]0]FCGBR$$ALL&Id=F00000JOAL&ClientFund=0&CurrencyId=GBP&story=370389389911918[/URL]

JohnRo

Yes swirling down the gurgler I suspect. I was looking at the yield the other day on this and BRWM and thinking this won't last long.

I'll just hold indefinitely, probably exclude it from rebalancing until the EM situation looks to be a little more stable which might well be never.

I read this today from Redwood.
https://www.charles-stanley.co.uk/group/cs-live/troubles-continue-latin-america

JohnRo

Given the volatility of late I'm looking to add a little perceived stability with some fixed income to accompany TFIF next round some time in November/ December rather than add to the potential for further volatility. I'm expecting equity valuations to get worse short term.

I've listed FAIR and UKML in a post above, both are very new though. UKML from twentyfour inspires more confidence than FAIR, UK mortgage defaults are historically very low, though both look interesting prospects.

Also looking more closely at established prospects globally with a 4% weighting to HDIV or IPE, inclined towards HDIV given the relative valuation stability, lower costs and what seems like a more sustainable payout.

My only regret is purchasing Merchants, a real dog that has turned out to be, so far at least, heavily in debt and swallowing all the not much higher yield, then some, in dismal performance when compared with peers. Hindsight is such a wonderful thing. Dilemma is whether to ditch it now or file it in the bottom drawer with ALAI and just leave it be for the duration.

Any suggestions or opinions about fixed income elements?

JohnRo

DAY 848




changes planned at some point before next April