Monthly income

takesyourchances

Good luck with it all John, interesting read. My Aberdeen Asian Smaller Cap fund has also fallen recently and like you I am optimistic about it and have been buying through into it for some value.

I seen the drop in the BlackRock Property tracker, I was looking at this earlier this year and hopefully it will come back for you.

I am adding the Cazenove UK Smaller Cap fund next to round off my small cap exposure.

Will follow this thread.

Thanks

TCA

JohnRo wrote: »

The Asian income is one that had my trigger finger hovering over the buy button, recent lift made me wait and see though.

Ark_Welder wrote: »

But I will also confess to having been tempted to top up AAIF too!

Also guilty as charged. Been looking to make lump sum purchases of AAIF and SOI and dithered seeing as the prices started creeping up. Had persuaded myself to bite the bullet on Friday, duly missed the boat and today they're on the up again.

Finger back on the trigger this week...

JohnRo

NAIT topped up £500 @ 847 on 19th Sept. - no other changes.

Had intended adding another £500 if it fell further but has climbed ever since, wish I'd done the same with AAIF (as per up thread) but c'est la vie.

TCA

Thanks for posting the update JohnRo. It's very interesting to watch over time and see how your basket of funds and trusts produces that mix of gains and losses (albeit unrealised) across the spread of investments. What's even better to look at is the estimated dividend income, which brings the point home to me that I should just take the plunge myself rather than sit on the sidelines and miss out on the yields.

JohnRo

Yeah, it's all about the income. Don't get me wrong, nice to see the valuation going up but it's secondary and I'll not be chewing my nails off when it inevitably drops from time to time.

My tracker portfolio is matching the valuation gain here, it'll be interesting to see if and by how much that widens between the two over a number of years though. I reckon there's a lot to be said for compounded income versus low yield acc index trackers but time will tell.

TCA

JohnRo wrote: »

My tracker portfolio is matching the valuation gain here, it'll be interesting to see if and by how much that widens between the two over a number of years though. I reckon there's a lot to be said for compounded income versus low yield acc index trackers but time will tell.

I've decided to sell my unwrapped index tracker portfolio today, almost exactly one year since my first purchases. I'm going to start again ongoing within my ISA, minus the Vanguard EM index tracker and minus a couple of small company EM and Asia funds, all of which I'll cover in investment trust purchases as I think better suited.

I should net between 9% and 10% on the trackers for the year, which I'm more than happy with, but I've dabbled too much and it's a bit of a mess so will start afresh as I mean to go on....

JohnRo

TCA wrote: »

I've dabbled too much and it's a bit of a mess....

Oh, I know that feeling well.

Just been lucky the markets have been kind this last year and allowed a fair bit of adjustment without any significant penalty. The issue I have in my index tracker is smaller companies. The Vanguard GSC index is doing great but a number of managed regional funds are now also doing just as well and the cazenove UK smaller cos is far ahead so it's tough to ditch them when doing so well, then again that's perhaps the ideal time. I know I need to get with the index program (at least in there) to be consistent and streamline the list accordingly.

No intention selling up though, that index portfolio is going to be a long term fixture for me. This income portfolio is going to allow me to tinker round the edges and take a few small scale punts when I think valuations warrant it. No fixed plans, just hope to adjust and adapt over time and hopefully learn a thing or two along the way.

TCA

JohnRo wrote: »

The Vanguard GSC index is doing great but a number of managed regional funds are now also doing just as well and the cazenove UK smaller cos is far ahead so it's tough to ditch them when doing so well, then again that's perhaps the ideal time. I know I need to get with the index program (at least in there) to be consistent and streamline the list accordingly.

The Vanguard GSC index fund was my best performer and should result in a 20% gain on sale. I'll definitely repurchase but will balance up with some small company exposure via trusts. My Aberdeen Asia Small Company fund about broke even over the year with their Emerging Markets small company fund and Templeton's equivalent much the same. If I buy investment trusts for these areas I hope I'm more inclined to leave them be and resist the urge to meddle! And I need to restart my index tracker drip feeding and just leave well alone!

JohnRo

Trimmed Bankers & Finsbury today, down to £3K in each with a view to snaffling £5K worth of EDIN if it'll just slide a bit further. Put in a market order today for EDIN but couldn't snag the price I was looking for.

Reasoning, BNKR & FGT have been lifeless since July despite some significant market moves and their yields are a little on the low side for this income portfolio though the intention there originally was that their growth would compensate. Obviously a few months in is utterly useless for drawing any conclusions but regardless - decision made.

EDIN will sit more comfortably in the portfolio imho with a higher yield and what seems to be a more market responsive constitution. I looked at PLI but the lower yield and similar performance in recent years made me favour EDIN. Possibility of a short term premium recovery is also a consideration but that may be gone for some time or for good so not counting on that.

TCA

JohnRo wrote: »

EDIN will sit more comfortably in the portfolio imho with a higher yield and what seems to be a more market responsive constitution. I looked at PLI but the lower yield and similar performance in recent years made me favour EDIN.

As you know I'm also looking at both and am actually tempted to buy both. There are overlaps in holdings (not unsurprising given the management) but I think PLI differentiates sufficiently (especially re smaller caps), that I'd be comfortable holding both. EDIN does have a higher yield but (from memory) if the dividends continue to grow at recent rates, PLI would overtake EDIN in 3/4 years. All guestimates of course and I'm probably guilty of plucking numbers out the air to suit my preferences.

Not really considering any ramifications of Woodford leaving EDIN, leaving/returning, Barnett taking over EDIN, Barnett possibly losing PLI or whatever other permutations exist.

Neither is quite at my strike price but getting fed up, so might just buy on the next dip, however small!