ITs or Individual Co. Shares?
Comments
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CTY currently has a yield over 4% and has increased dividend payments every year for over 50 years. So if someone is looking for that sort of level of regular income increasing with inflation, that seems to me a better option than a FTSE100 tracker.
And I am a very happy owner. 4% with a 50 yr track record of increases? I think its time to buy more.0 -
That's turned out to be a great decision. Just wondering, if the WEIF had been set-up as an IT with the same type of remit as CTY, would the Mr Woodford have been able to change the strategy and buy all these unlisted stocks? In other words, could the same fate as WEI Fund happen to a mainstream equity income IT like CTY or other similar ones with a long history, or are ITs safer than funds in that respect?
I think as others said, once Woodford went off the route the fund was promoted as at launch and the unquoted stock was going in and it went badly off course, I decided to get out while ahead as it had dropped a lot from I bought at opening. Thankfully I did as we know it went from bad to worse like recently.
I see others said about the boards of IT's would hopefully not allow the change of direction from their policy and objectives like what Woodford done with his fund, others would know more than me on this. CTY was more what I was after for UK and I thought to merge the sale of Woodfords into it which I am glad I did and feel it is an investment holding for life.
As Atush said "And I am a very happy owner. 4% with a 50 yr track record of increases? I think its time to buy more." - that is my thinking too and UK equity is well priced at the moment, I am happy to be buying more as part of my overall portfolio and collecting the dividends on the way.
With reference to funds, as part of a tidy up as I went more IT based in recent years I merged other funds over into my other IT holdings to make things easier as I went more this direction.
I only hold two funds now which I plan on keeping and that is BNY Mellon Global Income (previously Newton Global Income) and First State Global Infrastructure - I have towards £7000 in each of these funds at the moment. I like what each fund invests in as well. I would invest smaller amounts here and there from dividend income into these funds at times with no trading fees and then build up larger sums for other IT's that I can't add to on monthly regular investing.0 -
The only thing that initially concerned me about investing in ITs, was the fact that they were not covered by the Financial Services Compensation Scheme. However I now don't see a problem with investing in the long-established mainstream ITs.takesyourchances wrote: »I think as others said, once Woodford went off the route the fund was promoted as at launch and the unquoted stock was going in and it went badly off course, I decided to get out while ahead as it had dropped a lot from I bought at opening. Thankfully I did as we know it went from bad to worse like recently.
I see others said about the boards of IT's would hopefully not allow the change of direction from their policy and objectives like what Woodford done with his fund, others would know more than me on this. CTY was more what I was after for UK and I thought to merge the sale of Woodfords into it which I am glad I did and feel it is an investment holding for life.
As Atush said "And I am a very happy owner. 4% with a 50 yr track record of increases? I think its time to buy more." - that is my thinking too and UK equity is well priced at the moment, I am happy to be buying more as part of my overall portfolio and collecting the dividends on the way.
With reference to funds, as part of a tidy up as I went more IT based in recent years I merged other funds over into my other IT holdings to make things easier as I went more this direction.
I only hold two funds now which I plan on keeping and that is BNY Mellon Global Income (previously Newton Global Income) and First State Global Infrastructure - I have towards £7000 in each of these funds at the moment. I like what each fund invests in as well. I would invest smaller amounts here and there from dividend income into these funds at times with no trading fees and then build up larger sums for other IT's that I can't add to on monthly regular investing.0 -
The only thing that initially concerned me about investing in ITs, was the fact that they were not covered by the Financial Services Compensation Scheme. However I now don't see a problem with investing in the long-established mainstream ITs.
Yes that is true, I mostly have mainstream IT's. My newest running IT I think would be Tritax Big Box REIT and I am thinking of adding in another newer IT in The Renewables Infrastructure Group as another string of my infrastructure IT's as I like the infrastructure sector.
How many IT's and funds do you hold outside your VLS?
At present I have a spread of 14 IT's and 2 funds outside my VLS.0 -
I have 12 funds and one IT(CTY) in my income portfolio. It is split between UK Equity Income, Global Equity Income, Asian Equity Income and strategic and corporate bonds. I also have a mixed asset fund (Artemis Monthly Distribution) which had a good performance history but has been a bit more disappointing than the other funds over the past couple of years. I probably should have an infrastructure and a property fund in there for more diversification.takesyourchances wrote: »How many IT's and funds do you hold outside your VLS?
At present I have a spread of 14 IT's and 2 funds outside my VLS.
The yield on the portfolio for the first year was 3.9% on the original investment and should be a bit more this year. I am hoping that level of income increasing with inflation will be sustainable without having to sell capital but maybe I am being too optimistic?0 -
CTY currently has a yield over 4% and has increased dividend payments every year for over 50 years. So if someone is looking for that sort of level of regular income increasing with inflation, that seems to me a better option than a FTSE100 tracker.
IT's hold distributable reserves accumulated from prior years. When Deepewater Horizon struck and BP cancelled it's dividend. Payments were maintained by drawing on these. No different to holding dividends received on individual holdings in a cash deposit account for a rainy day.0 -
I have 12 funds and one IT(CTY) in my income portfolio. It is split between UK Equity Income, Global Equity Income, Asian Equity Income and strategic and corporate bonds. I also have a mixed asset fund (Artemis Monthly Distribution) which had a good performance history but has been a bit more disappointing than the other funds over the past couple of years. I probably should have an infrastructure and a property fund in there for more diversification.
The yield on the portfolio for the first year was 3.9% on the original investment and should be a bit more this year. I am hoping that level of income increasing with inflation will be sustainable without having to sell capital but maybe I am being too optimistic?
It would be worth looking into infrastructure and property as some more diversification with the assets being income producing assets as such, they could compliment your income portfolio, with some IT's yielding around 4% and just over 5% in others, it could be good for a lift in dividends.
I added to my property IT's and infrastructure IT's this month and plan to again in August with plans for adding to other sections for July, mainly the global IT's I have,
It seems that you are not being too optimistic at all with your approach with increasing the income.
I plan on inputting my portfolio at some point into a spreadsheet, nothing too fancy, just to see sectors / regions and percentages mainly and I would like to chart the dividend income to see how it increases year on year easier. I check it on my account but it would be good to have it all together to track the progress.0 -
The yield on the portfolio for the first year was 3.9% on the original investment and should be a bit more this year. I am hoping that level of income increasing with inflation will be sustainable without having to sell capital but maybe I am being too optimistic?
What % do you hold in bonds? As the remaining % of your portfolio , i.e. equities, is going to have to do all the heavy lifting in terms of protecting your income/capital against inflation.0 -
About 37% of the portfolio is in strategic bonds and global bonds. Maybe taking income of between 3 to 3.5% would be more sustainable. Perhaps an income portfolio should have more equity, and not be too concerned about capital fluctuations to achieve a higher level of sustainable growing dividends?Thrugelmir wrote: »What % do you hold in bonds? As the remaining % of your portfolio , i.e. equities, is going to have to do all the heavy lifting in terms of protecting your income/capital against inflation.0
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