DaveH's HYP review

[daveh]

This is an update of my HYP. Earlier updates were on the TMF boards (but may well have been lost with the board closures, there were links in 2016’s update). My update for 2016 and 2017 can be found here:

https://www.lemonfool.co.uk/viewtopic.php?f=15&t=2365
https://www.lemonfool.co.uk/viewtopic.php?f=56&t=9330

Executive Summary

Performance in income terms was satisfactory with income increasing beyond inflation for all measures. Income rose by 8.40% for accumulation units and 3.39% for income units. In cash terms the income was up by 9%. Capital performance was dire though with a fall of -11.7% and -16.0% in unit value for accumulation an income units respectively

Details and Commentary

Portfolio Constituents




Sector Breakdown


This year I have topped up South32, IAPD (high yield Asia/Pacific ETF) BP, Lloyds Bank, BT, Dixons Carphone and I took up GFRDs rights issue. I top sliced SEGRO as it was making up too high a percentage of my income capital and bought VVAL (an accumulating value ETF) with the proceeds as a place to hold the cash until next year’s ISA allowance is available*.

I have also done a number of bed and ISA trades to bring my dividend income in taxable accounts below £2000. Bed and ISA transactions were: SSE, BT.A, GSK, LLOY, GFRD, UU. I generally bought a similar number of shares in the ISA to those sold in the taxable account the only significant increase in the holding size was for BT.

I have invested almost no new money this year as
1) I am trying to get as much of my dividend income into ISA’s as possible before the dividend allowance is reduced to £2000. (I have succeeded unless there is a large special dividend before the end of the tax year in the wrong share).
2) I’m worrying about Brexit and the direction of the markets due DT’s idiocy with trade wars.
3) I’m rebuilding cash savings after changing my car and doing work on the house.
But I have reinvested almost all dividends (there is a couple of grand in cash yet to be invested not sure when or where yet, maybe in one of the ETFs or into an all-world ETF.

* That was a mistake as, although it is an accumulating fund, being value orientated it receives significant dividends and these need to be reported as income. Fortunately as long as I don’t hold in a taxable account on 31st June 2019 no income needs to be reported.


Performance
The portfolio was unitised from September 2003 and the details are shown below.

Capital Performance (dividends reinvested) Accumulation units and Income units



Income Performance

[Steveam]

Thank you Dave. A nice looking portfolio nicely explained. I note that you don’t hold tobaccos (me neither) and continue to hold small/trivial holdings (probably historic) - I try to tidy these away. I try to take a sanguine view of capital changes and maintain a three year rolling average which dramatically smooths things ...

Best wishes,

Steve

[daveh]

I was thinking of tidying up some of the smaller holdings recently as one of my brokers sets the qtrly fee against any trades - so a sell would be free. M&B were the first I was thinking of getting rid of as its not paying a dividend again and is one of the smallest rump holdings, but they give out a booklet of 20% off vouchers. Never used them in the past, but this year a large party of us from work including some students from the group went out for a XMas meal at an M&B place and the vouchers got us all a discount that wasn't far off the value of the holding - so a pretty decent 'dividend'. I'll probably keep these to see if I can use the vouchers in the future. Of the other small holdings IHG seems to be performing reasonably well and keeps throwing of specials, William Hill may well get topped up as it is at the top of HYPTUSS and RBS is split across accounts. In my ISA no free/cheap deals for sales and outside the ISA I'm retaining it in case I need a big loss to set against gains.

Sorry I seem to have mucked up the last table. I previewed it and thought I'd fixed it, but it seems not.

I've reproduced it below in what I hope is now the correct form:
Income Performance