The starting capital for the shares portfolio was £36,000 and the starting capital for this portfolio was £28,000 - a combined total therefore of £64,000.
Although this is demonstration income portfolio, it largely mirrors my own holdings..
Performance & Disposals
My demonstration portfolio has now been running for almost 4 years. Many of the investment trusts have been there from the start - City of London, Aberforth, Edinburgh etc.
In August, I decided to slim down my holding in UK income trusts which resulted in the sale of Murray Income. In early September after a stellar run and gaining almost 50% since the start of this year, I decided to off-load the remainder of my holding in Murray International.
The portfolio has therefore made a little progress since 1st January. The value of the combined portfolios at the start of 2016 was £75,554 compared to the current value of £83,760 - a rise of £8,206 and total return of 10.8%.
The slight drag on performance has been the remaining individual shares which are collectively showing a total return of just 0.5% (Next -30%, L&G -13% and Berkeley -24%).
Since the last update a couple more shares have been sold - Tesco and BHP Billiton. I fully anticipate the remaining 5 shares will be sold at some point over the coming few months.
The total return for the FTSE All Share index year to date is 12.4%.
The various proceeds of sale remain in cash as I am struggling to find areas of value, particularly with regard to the fall of sterling and the rising level of the UK and US equity markets.
Income from my portfolio rolls in fairly predictably, particularly from my investment trusts. I receive no natural income however from my largest holding Vanguard Lifestrategy and operate a method of selling units from the growth to provide ‘income’. This year I have sold 8% of my fund to cover enough income for this year and next.
I have put in place a cash buffer equivalent to 10% of the value of my VLS fund to cover bear market periods when returns are flat or negative. The cash is held in my Coventry BS account which has recently seen a reduction in interest to 1.15%.
Increased Broker Charges
For several years I have used AJ Bell Youinvest for my S&S ISA as they did not charge a platform fee for individual shares and investment trusts/ETFs. However, that all changes from 1st October and I now pay 0.25% of the value of my investments but capped at £30 p.a. This works out at around 0.06% extra on a portfolio value of £50K.
The charges for my Vanguard UK Equity Income fund have increased from 0.20% to 0.25% - an additional £5 p.a. So long as the cap on charges remains in place, I will carry on with AJ Bell for my trusts.
My Vanguard LS 60 fund remains with Halifax Share Dealing which has a flat fee annual charge of £12.50 and works out at 0.05% of my investment for platform fees.
Here is the portfolio
|(click to enlarge)|
As always, feel free to comment on the performance of your portfolio below…