Drop since year end

[tjh290633]

I have just checked my Income Unit valuation. They are down 3.47% since the start of the year, the Accumulation Units are down 2.58% and the FTSE100 is down 3.05%.

I use the unitised values because the drawing of cash (or the addition of it) have no effect in this case.

TJH

[BT63]

My portfolio is showing a small gain, with positive performances from most of its major holdings. But unless I sell, it's just a paper gain - and I only occasionally make significant sales or purchases.

When I made a year-end summary portfolio post at the end of December 2021, I commented:

'.....The portfolio is mostly intended to be low maintenance, long-term-buy-and-hold to allow me a good night's sleep; stock markets could close for five years and I wouldn't fret.
In most years it has very low turnover; a quarter of my holdings have been with me for about two decades (!) and half the portfolio has been with me for about a decade (!).....'

The portfolio has more than achieved its objectives.

At the end of 2021, 25% of portfolio was in gold (+7% YTD) and about 7% in each of its largest three shareholdings, AZN, GSK, NG. (all up between +4% to +28% YTD plus a couple of % dividends on top) plus positive performance from two of the three holdings below them amounting to about 5% of portfolio in each.
The 9% in cash hasn't lost any value which has also helped portfolio stability, although it is now being used for selective additions to my portfolio, mainly precious metals and their miners.

[Wuffle]

From virtually all in cash at the onset of the pandemic, I have about 10% left of my cash to deploy.
Clearly I have bought some stuff at completely the wrong time.
Despite this, I appear to have done 'average', I saw a +7% briefly around the turn of the year but mostly in the sixes and now about -2.
It is a messy figure, dividends reinvested and a couple of hilariously badly timed Reit buys immediately preceeding a 20% drop this year.
I wasn't tempted by any of the 'growth' stuff as it round tripped, which saved me from a worse outcome.

My sibling and I sold mom's house in January and it has sat in cash since, depleted by care costs.
This is a much bigger lump than mine and the timing of this deployment is the tricky one.
I note with interest that some here have moved back in recently.

W.

[Dod101]

Not only am I not bothered by it but I positively welcome it. It enables me to put some new money to work at a better price. It also enables me to sell off some winners and pay less CGT.

That said I don't keep track of my total portfolio value, so I cannot answer Dod's question. I have five accounts across 3 brokers and to merge them all for valuation purposes would not be a worthwhile effort for me. I suspect I am down more than many here as I have a lot of US investments which are down more than UK shares. On the other hand being mostly denominated in USD has worked well recently and long term as well.

Yes, falling markets often throw up bargains. I've bought heavily in the last couple of weeks; putting 5 out of my 6 years living expenses cash reserves into the market. Mostly Central London property companies (e.g. Derwent London), Carlyle Group, Brookfield Asset Management and Games Workshop. Most were some 30% to 50% off their peaks.

My Americans and Canadian shares have done better than my British shares in 2022! Helped greatly by the big fall in the pound and my having a lot in railroads (Canadian Pacific is up by over 12%, mostly due to Canadian Dollar strength), Berkshire Hathaway (up 6.4%), no tech and quite a bit in Farmland Partners (about 25% up since I bought in earlier this year)

Canadian banks of not had a vintage year so far (after a very good 2021 I admit) I will though, probably keep taking the dividends and buying more of them!

Dod

[AsleepInYorkshire]

I haven't looked.

AiY(D)

[Gerry557]

Im not sure if Im comparing apples with oranges but my PF is up 5.76% year to date. That will include dividends that have been reinvested but not any cash still to invest.

A have a basket of funds that have had no reinvestment or changes and that are down -5.86% I think one of the funds changed slightly Old name: Liontrust European Growth Fund I Inc to New name: Liontrust European Dynamic Fund I Inc. This change seems to have removed regular dividends so is on the one to get rid of maybe pile but might affect above figures.

The income has improved every month apart from Jan that was down.

I have been investing more of the dividends on the big dips and Friday was a good day might have looked worse if I checked Thursday.

Early March was probably my low

[doug2500]

You guys aren't doing it right.....my (largely smallcap) pf is down 23% year to 5th july.

I congratulate myself on successfully removing a lot of valuation risk from it.

[Golam]

My overall portfolio figure is down 9.33%, post removal of dividends. Should those dividends have been retained then the valuation would have been down 6.01%.
Does the OP record relate to the retention of dividends or otherwise ?

[monabri]

31/12/21 to Friday 15/07/22 - Down 3.7% (edit: Probably this is the one to use as the next data point is 12th Jan and Dod did say "year end!")

Reversing out dividends paid and reinvested as though they had simply been withdrawn..

31/12/21 to Friday 15/07/22 - Down 7.1%

[AndyPandy]

ummm, no drop - I've made approx. 5% to date this year. Roughly speaking that's also how much I've taken in Divis, so stripping that out shows a small capital return. Still not a drop though and I'm looking for Total Returns anyway.

My PF is listed elsewhere on this Board and an obvious reason for the outperformance was that a significant holding (AIR @ 12% ) was taken over at a Premium. Without that I would have made a Capital loss, however isn't that the point of diversification - you can't really predict the winners so spread the risk. Since Year End I've gone from 19 to 24 stocks despite two being taken over as I'm diversifying more.

I'm also purely UK-based equities and avoid Tech darlings. I've been immune to the direct results of this year's Tech rout. Also missed out on the previous years' gains too, obv.


Although my PF extends way past FTSE, I use it as my baseline as a Benchmark because it is so recognisable.

[1nvest]

In the times today there is what is I guess meant to be a helpful article by some fellow who is taken as an example about the need for diversification. WE can all agree or not about that and the extent where it is helpful but I was struck by this man's comment that he was down only 10% since year end, showing I suppose the benefits of diversification. My portfolio is not very diverse. I hold 30 shares normally and am surprised to find that I am down a mere 8.4% since year end and that includes four bond funds which are down rather more than that.

No need to respond if you feel uncomfortable doing that but it would be interesting to know how much others are down.

Dod

£, US$, global currency diversification
land, stock, commodity asset diversification

£ in UK home
US$ (primary reserve (fiat) currency) in US stock (50/50 MKL/BRK conglomerates)
Gold for global (non-fiat) currency (and a commodity)

2021 year end to end of June 2022 +10.5% for the 50/50 stock/gold.
Average UK house prices +6.7% excluding imputed rent for year-to-date (end of June) ... as per Halifax House Price Index.

So collectively around +10% assuming equal weighted thirds.

MKL (Markel) is oft described as being a baby BRK (Berkshire Hathaway), and similarly pays no dividends, so no US dividend withholding taxes. Being stocks there are no fund fees. Britannia (or Sovereign) gold coins being (mostly) legal tender coins, incur no capital gains taxation. Your primary home is also CGT exempt, as is imputed rent benefit.

Regular income flows are a potential tax risk factor, more so under high/rising interest rates (that often are accompanied by rising taxation rates as the stresses inducing the interest rate increases also hit the state budget).

Note that in US$ terms that year-to-day end of June was near 0% for stock/gold 50/50, most/all of the gains from a UK investor perspective are a factor of a relatively low/declining Pound.

[daveh]

As of friday last week down 4.7% in cash terms. Accumulation units are down (surprise surprise) 4.7%. Income units are down by 7.5%, a higher drop because that accounts only for the falls in the capital and ignores dividends received.

[Dod101]

As of friday last week down 4.7% in cash terms. Accumulation units are down (surprise surprise) 4.7%. Income units are down by 7.5%, a higher drop because that accounts only for the falls in the capital and ignores dividends received.

Thanks yes, I was thinking only in terms of capital, otherwise I would have been down only about 4%.

Dod

[Newroad]

Hi again Dod et al.

As noted above, just did a valuation in preparation for II's free regular investing day tomorrow (so I know what to balance into).

The good (or at least, less bad) news is that from -11.26% (best) to -14.71% (worst) noted above, there has been an improvement to -8.99% (best) to -12.09% (worst) - still since 31/12/2021.

The above are all based on accumulation unit values of the sub-portfolios.

Regards, Newroad

[Bouleversee]

In the times today there is what is I guess meant to be a helpful article by some fellow who is taken as an example about the need for diversification. WE can all agree or not about that and the extent where it is helpful but I was struck by this man's comment that he was down only 10% since year end, showing I suppose the benefits of diversification. My portfolio is not very diverse. I hold 30 shares normally and am surprised to find that I am down a mere 8.4% since year end and that includes four bond funds which are down rather more than that.

No need to respond if you feel uncomfortable donig that but it would be interesting to know how much others are down.

Dod

Is that calendar or fiscal year, Dod?

[Dod101]

In the times today there is what is I guess meant to be a helpful article by some fellow who is taken as an example about the need for diversification. WE can all agree or not about that and the extent where it is helpful but I was struck by this man's comment that he was down only 10% since year end, showing I suppose the benefits of diversification. My portfolio is not very diverse. I hold 30 shares normally and am surprised to find that I am down a mere 8.4% since year end and that includes four bond funds which are down rather more than that.

No need to respond if you feel uncomfortable donig that but it would be interesting to know how much others are down.

Dod

Is that calendar or fiscal year, Dod?

Since closing prices on 31 December 2021 and capital values only, that is of course, ignoring any dividend income.

Dod

[Bouleversee]

Thanks, Dod. Actually, I prefer to calculate the total return, especially as I haven't reinvested all the dividends recently and also there have been a few takeovers whose proceeds haven't been reinvested either as most things I have bought in the past year have lost money. Excluding the cash sitting in the account or withdrawn (can't remember offhand whether there was any of the latter) doesn't really give a true picture of profit or loss. I have had 2 huge dividends from Persimmon so it wouldn't make sense just to include the reduced value. However, I'll try to work it out tomorrow.

[Dod101]

Thanks, Dod. Actually, I prefer to calculate the total return, especially as I haven't reinvested all the dividends recently and also there have been a few takeovers whose proceeds haven't been reinvested either as most things I have bought in the past year have lost money. Excluding the cash sitting in the account or withdrawn (can't remember offhand whether there was any of the latter) doesn't really give a true picture of profit or loss. I have had 2 huge dividends from Persimmon so it wouldn't make sense just to include the reduced value. However, I'll try to work it out tomorrow.

No matter. There is no requirement to do anything!. I was just interested after reading the article at the weekend.

Dod

[MDS1951]

So far as the capital value of my HYP-ish portfolio is concerned, I'm up by 1.5%; however, there's plenty of time left in calendar 2022 for things to go the other way.

MDS1951

[1nvest]

In part I track the FT250, and use 2MCL half loadings as part of that, which is a 2x leveraged FT250 total return swap. Recently that was down around -38% year to date a week or so back. Compared to the regular FT250 being down around -15%. Gold, that I partner with that, was up around +11% over the same period, such that the combined two down -13.5%.

But just a smallish part of the total portfolio, so further diluted as that is my most recent worst case holding. I don't really track my total portfolio value that closely, so no real idea of the YTD for the whole. Rather more a case of seeing 2MCL down a lot, so will add some to that at year end if the present position holds until then.

For me, 50/50 2MCL/Gold has worked better than 50/50 2MCL/bonds - that is more inclined to more closely track 100% 1X stock US PV example

In the broader sense, 8 months is just a eye-blink that fades into insignificance in a 30 year window.