Monthly income

JohnRo

This is close to my final choice now, it feels this is about right for me. Based on an aggregate sense (as I see it) of fair value, sustainable dividend with good dividend growth prospects, decent income, cheap running costs, good track record and generally well regarded investments. Sacrificed some immediate income to better long term prospects for income growth.



Very difficult for me to assess how many of these numbers are painted on boats that have sailed but prepared to get on board with these and see where it goes.

TCA

JohnRo wrote: »

I have made the first tranche of investments in this years ISA.

£1000 Invesco Perpetual Distribution Z Inc.
£1000 Invesco Perpetual Monthly Income Plus Z Inc.
£2000 JOHCM UK Equity Income A Inc.
£2000 Jupiter Strategic Bond I Inc.
£1000 Kames High Yield Bond B Inc.
£2000 Schroder Income Maximiser Z Inc.
£2000 Threadneedle Global Equity Income Z Inc.

JohnRo wrote: »

This is close to my final choice now....

The notion of using unit trusts completely binned now then John?

JohnRo

Nothing is ruled out, the simple truth is that I don't know exactly what to do for the best so have to make a start somewhere.

I'll probably buy the Henderson UK income UT and leave a cash pool of around £3-4K which feels like a ridiculous thing, having such an amount sat earning almost nothing after years of jumping through hoops chasing fractions of a percent in savings accounts, but it will allow a cash pool for income withdrawal, emergency use and hopefully some opportunistic buying and selling.

The list of investments I'm choosing will have several IT missing that I'd really rather have included in an ideal world but the choice of a lower starting yield for what I hope and expect to be longer term increases in income and the growth needed to feed it seems the right way at this point.

The next lot of purchases will be the IT investments but I'm finding making the final choice incredibly difficult. Almost every time I look I start doubting the selection and looking at others on the list. Not wanting to change those selected but to include those excluded.

So I'll buy these based on selection criteria
Henderson City of London
Standard Life Equity Income
Aberdeen Asian Income
Investec Temple Bar
Henderson Lowland
JPM Mercantile
Henderson Bankers

But I have to admit I'm uneasy about not having included these

London & St. Lawrence
Edinburgh
Murray International
Law Debenture
Finsbury

these can all be included at a later date though if I can find the money to make these purchases in the next few years.

The backdrop to all this is that the damned markets are sky high right now but I'm comfortable with equities and that it's the right asset class to be invested in over the next several years. How's that for tempting fate and a huge kick in the teeth...

JohnRo

The transfer landed Saturday.. (Gulp)

Decision made, 10 trusts... for richer or poorer.

Blue are UT and already purchased
Yellow are IT and order going in tomorrow



Just over £140 a month, won't need to touch it for a few months at least. No doubt the reality won't quite measure up to the planning but here goes nothing.

TCA

Well done John and good luck. Let's hope fortune favours the brave! I need to get my own act together and do likewise as my cash at a current pre-tax rate of 2% is a waste (IMO). Very wary though given the present sky-high prices you mentioned and the fact my only other major lump sum investment bombed in 1999. As you did, I just need to convince myself that equities is where my money has to be.

TCA

From an income producing angle I'd be interested if anyone else is taking a similar approach to JohnRo and holding a selection of investment trusts for this purpose? If so, care to divulge the trusts, your reasoning and whether it's working?

I linked The Motley Fool website earlier where poster Luniversal operates a basket of 7 trusts:

" The B7 houses trusts from the UK Growth & Income, UK Growth, Global Growth & Income and Global Growth sectors. They are to be bought in equal amounts from a lump sum of £10,000 or more: Bankers (BNKR), F&C Capital and Income (FCI), JPMorgan Claverhouse (JCH), Lowland Investment (LWI), Mercantile (MRC), Murray International (MYI) and Perpetual Income & Growth (PLI)."

Makes for very interesting reading.

http://boards.fool.co.uk/basket-of-seven-annual-review-2013-12828989.aspx?sort=whole

BLB53 linked the DIY Investors version which is City of London, Murray Income, Temple Bar, Edinburgh, Murray International, Bankers, Law Debenture, Henderson Far East, Schroder Oriental, B/Rock N. American, Aberforth Smaller Cos, and New City High Yield

Anybody else?

JohnRo

Thank you for the input Ark, and others too. Valuable and much appreciated.

I'll be monitoring infrastructure/property IT's over the next weeks.

Will probably post periodic updates from time to time to show how things are going. Intended doing the same with my other index tracking thread but moved platform in April and took the opportunity to switch to Blackrock D trackers which mixed things up a bit. Once it looks like I want it to (weeding out the managed smaller cos.) i'll update it.

Future updates are for my own reference really but others may find it mildly entertaining and comments are always welcome.

TCA

Ark_Welder wrote: »

Depending upon how much rain we get this week, and when we get it (i.e. how little will I be able to do outside...), I'll put together a list of my own, but I'll put it into a separate thread so as to leave this thread for JohnRo's purpose.

Thanks, that would be of interest (weather permitting!). Not my attention to derail JohnRo's thread.

JohnRo wrote: »

Will probably post periodic updates from time to time to show how things are going. Intended doing the same with my other index tracking thread but moved platform in April and took the opportunity to switch to Blackrock D trackers which mixed things up a bit. Once it looks like I want it to (weeding out the managed smaller cos.) I'll update it.

Will look forward to see how things progress. On the subject of managed smaller cos funds, I got an email reply from Best Invest on the non-tradable Aberdeen funds and will post it in the other thread.

JohnRo

Purchases went through this morning, buckle up time for me now, expecting short term pullbacks but definitely comfortable with equities as a longer term investment.

I take data snapshots on the first day of each month. Thanks for updating on EM smaller cos.

gterr

JohnRo wrote: »

Will probably post periodic updates from time to time to show how things are going. Intended doing the same with my other index tracking thread but moved platform in April and took the opportunity to switch to Blackrock D trackers which mixed things up a bit. Once it looks like I want it to (weeding out the managed smaller cos.) i'll update it.

Hi JohnRo,
I'd be interested in reading your index tracking thread. Do you have a link to it?
Thanks.