Monthly income

takesyourchances

Happy New Year to you John, great update as always and I am sure it is nice to get into your new house and back to your investing and goals. Hopefully 2020 will be a good year for us all.



Enjoyed reading your update and stats, it will be interesting to see how long your portfolio will take to get back to the levels you were at, you are still in a great position going forward.



My IT's etc broke over £2000 in dividends and all re-invested in 2019 so interested to see were my own will be at the end of 2020, I am starting to see the dividends snowball and aiming higher also.



Look forward to your updates through the year, I would not even know were to start with the information you have for my own, but always interested in looking over it

green_man

My IT income portfolio I will start drawing income from in 12 months, the target is £500/month income. Last 12 months income was £6.5k so does cover my requirement but I’d like a bit more headroom. I will likely be reinvesting divs for most of this year (along with maybe an additional 5-6k ) but will start to allow cash buffer to build prior to withdrawing dividends. Current capital value is £175k but that’s been bumped up £15k+ since the election so may dip again soon. My portfolio is somewhat more streamlined than Johns having 14 funds (vs 36).

JohnRo

green_man wrote: »

I’ve got to admit John you take a much more active rebalance role than I do.

Yes, not exactly by design of late, the typical schedule is one trade per month and that should now be the case again going forward.

As per the update post above most of the trades listed there were in fact clearing out all the non ISA holdings and realising some decent gains (as well as one or two capital losses) to raise some extra cash for the house purchase.

It was always the plan to do this anyway so in effect I've simply incurred what would otherwise have been the same or quite possibly higher transaction costs spread over many months, crammed into the space of a couple of months or so.

It needed doing so at least it's out of the way and if iWeb do ever up their charges, which I've been half expecting for a very long time, then at least I will have saved a little there.

From here on in the schedule is intended to be a single trade at some point each calendar month with CSD which ticks a few boxes in one fell swoop.

RDL I decided just to hold to the death, I'm keen to see how it all pans out in the final analysis and whether I can walk away from the car crash with a profit, however small.

cloud_dog

JohnRo, I would be interested to hear how this stock market, dividend income 'adjustment' affects your plans/goals at some point in the future, if you are happy to share?  And, whether you stuck with the plan or whether you needed to revise your plans or make any structural changes, i.e. sell some investments to raise any income?

JohnRo

I'm not at the stage of wanting or needing to consume the dividend income or access any capital so have no requirement to sell anything.

That means nothing is going to change unless I am forced to change something, there's no point me making half baked predictions or trying to second guess what's going to happen in the next weeks, months, years. Utterly pointless IMO.

The investment plan now is to continue with the investment plan, this portfolio is in the accumulation phase. Keep calm and carry on...

A single monthly (re)investment of the staggered annual ISA allowance and accumulated internal dividend income, as per the last few years (notwithstanding the house purchase selling towards the end of last year) will continue. Allocations are all over the place at the moment so I'll rely on the spreadsheet purchase priorities rather than letting my own feeling and guessing about what might do better than something else in the short term dictate. I am sorely tempted to front load this years ISA allowance but will refrain.

I have captured the recent falls so will post an update to show what might, all being well, the worst of it, when I get round to it. Some images of the damage done are really impressive !!.

One thing for sure is that this crash hasn't phased my investment plan or outlook in the slightest, I can honestly say the stress I felt a couple of years ago when I was out of the market for a few weeks was far more distressing than this. I am optimistic now and looking forward to seeing how the valuation and potential damage to the income stream repair over time.

cloud_dog

For some reason I didn't appreciate you were still in the accumulation phase.  I was curious how this scenario would pan out in the months to come (3 to 12) if the income stream was part of the plan and whether, for example, you will have planned to have a cash reserve to cover this type of eventuality (more than likely).  It would have been an interesting experiment (sat here on the sideline without the worry of disappearing income) 

JohnRo

One of the main reasons for choosing IT investment vehicles was the relative income security so it'll be interesting to see how it holds up over the duration of this emergency and the aftermath. I'm expecting the predicted payouts to roll in this year but after that who knows. I'll cross these bridges when I get to them.

JohnRo

DAY 2751 - (01/01/21) update for those interested. HNY

First time in the new forum so hopefully this format still works.. (it didn't but) here's an update for those interested.

I've been busy doing other stuff, MSE has fallen off the radar and likely to remain that way but I will keep updating this thread every once in a while fwiw.

What a horrible year 2020 has been folks.. and yet I'll be very surprised if 2021 is anything like as good as 2020 has been for some investments.

The darkest days for this portfolio, and most others I suspect, were in March April. During that glorious spring weather... I've included the heat maps and discrete charts, then and now, to contrast.

An 8% TR benchmark has been added to the long term projection chart as a 'full subs ISA' target to aim for. it includes the house purchase withdrawal made last year and acts as my benchmark. I may get there or more likely not, the plan was to have this portfolio as a 25% allocation of the total pot but I've decided to drop that to 20% given big rises elsewhere. That will impede the ISA allowance input as it'll need to be diverted to these other allocations as I am still in the long process of trying to pull everything into an ISA wrapper.

I'm hoping that following the rebalancing schedule will somehow exceed that 8% TR full ISA allowance curve longer term with both internal and external rebalancing, reinvestment and all being well, capture of some individual outperformance given the allowance drain into other assets.

The incremental £10K income targets have all been pushed further into the future as the trailing annual dividend payout took a big hit following the capital drawdown around this time last year but that should have all bottomed out now and be starting the climb back towards those targets again.

Unsurprisingly the trailing dividend yield exploded in March as valuations were heavily damaged by the rout but the dividend payouts for the most part have continued unmolested during this ongoing crisis.. that's one of the few gratifying things to come out of the past year. With new money in, maintained dividends and the recovering valuations a typical trailing annual yield has now just about been restored.

Most of the big rebalancing opportunities have evapourated much more quickly than I would have expected or liked, I was sorely tempted to pile in with all the ISA allowance in April but decided to stick with the plan... hindsight is always a wonderful thing. At the very least maintaining discipline with the monthly input schedule has allowed a partial capture of some distressed valuation opportunities. Just a few though, it's a shame the rout didn't last a little (or a lot) longer... yet again.

Here's a list of trades since the last update in Jan 2020

2020-12-01 1172 ABERDEEN ASIAN INC 2.12 S Date 03/12/20 BUY
2020-12-01 2047 ABEN DIVE .96 S Date 03/12/20 BUY
2020-11-10 125 INT BIOTECH NoTf 8.14 S Date 12/11/20 SELL
2020-11-03 3024 STD LF INV PRP INC .52 S Date 05/11/20 BUY
2020-10-02 4715 ABEN LATI .48 S Date 06/10/20 BUY
2020-09-01 1277 JPMRGN EPN INV INC 1.18 S Date 03/09/20 BUY
2020-08-28 1382 N AMER IN 2.26 S Date 02/09/20 BUY
2020-07-01 306 MURRAY INTL 9.94 S Date 03/07/20 BUY
2020-06-01 852 TR PROP IT 3.61 S Date 03/06/20 BUY
2020-05-07 1005 BLAK NORT Del 1.56 S Date 12/05/20 BUY
2020-04-06 2077 N AMER IN 2.22 S Date 08/04/20 BUY
2020-03-31 169 HENDRSN F/EAST INC 2.77 S Date 02/04/20 BUY
2020-02-19 820 JPMRGN EPN INV INC 1.61 S Date 21/02/20 BUY
2020-01-03 1250 N AMER IN 3.02 S Date 07/01/20 BUY

Decided to sell off some of the IBT gains, given the circumstances that drove them are hopefully going to start changing over the next few months. They were diverted into the December purchases, time will tell whether that was a dumb move.

Valuations have mostly recovered and with new money in and maintained dividends, the relative costs which spiked in March April are now subsiding but they're still higher than I'd like. Just need to keep on more or less the same track and they should tail off to relative insignificance at some point.

I've decided to drop the ASLI addition and instead give JCGI that specialist allocation slot. It feels a bit like jumping on a fashion investment bandwagon but at the same time some limited direct exposure to the red menace in the East seems sensible. It'll be a small part of the total so not worried about the current valuation level and premium being elevated.. will as always rely on future rebalancing to take care of it, one way or the other.

JSGI (was JPS) has continued being the standout so far this year, in contrast to the other Japan trust CCJI. After a promising start the CCJI management now seem to have run out of steam (or luck). I've decided to trim CCJI this month for that reason and also to pull it into line and make available capital for purchases in FEB and MAR.
ALAI has been a bit of a dud for as long as I can remember but in recent weeks it has started to perform very well, now hoping that continues.
In contrast BEMO (was BEE) which had been the undisputed TR performance champ in this portfolio for a number of years (with the help of timely rebalancing) fell hard early this year and what seemed like a forced/panic move from management followed with changes to it's mandate. Debated whether to ditch it as no longer suitable for the slot but have instead decided to hold on and just let it run its course. It is still doing a lot of what it always did so can live with it and as BEMO is a small allocation it's not critical. Thankfully it's starting to show signs of recovery.
JEFI has held up well following the decision to halve BRFI exposure, if they start to diverge significantly from here I may drop the loser for the index ETF, time will tell.
UK allocation stays unchanged, I don't expect anything good to somehow materialise as fantasies fade and reality sets in on the new UK paradigm. A slow decline perhaps, let's see.
HPRO is still proving to be a dud but given the past year it's not yet a concern. I'll give it at least one rebalance before deciding whether to look elsewhere.
JAGI (was JAI) and JGGI (was JPGI) mentioned this time last year as relatively new additions have both continued to do well, there seems to be a pattern emerging with my JPM holdings.. hmm
Also mentioned this time last year were my other long suffering duds, ADIG which now benefits from a recent rebalance and PMGR (was PEW then PGIT) which started showing signs of a long awaited change in fortune. PMGR has now dug itself out of what was at one point, a few years ago, a very deep hole. So that's encouraging and hopefully it now goes on to do better things for the bottom line. It's fees are ridiculously expensive but I still want to give it a chance to come good.

2020 has ended the year as much less of the disaster than it looked like being for much of it. Heres a few more images..

Here's hoping everyone has a much happier 2021.

..over and out.

JohnRo

It looks like the forum isn't handling bbcode very well, sorry about that.

Unless I've missed a trick.. is image posting with a click through link still possible?

eskbanker

JohnRo said:

It looks like the forum isn't handling bbcode very well, sorry about that.

Unless I've missed a trick.. is image posting with a click through link still possible?

Yes, but the new forum uses HTML rather than bbcode, editable via the </> button in the post edit window menu: