Member Info for zac0_4

Hi Crossley - I'm not too sure what exactly you're after. Here's the same holdings as I've listed previously with their 2 year calendar performance ie 31.12.20 to 31.12.22.

These would not necessarily be my top and bottom 5 holdings during this 2 year period.

Baillie Gifford Positive Change Fund -13%
L&G Global Tech Index -3%
Axa Framlington Global Tech -14%
Greencoat UK Energy +27%
Fundsmith Equity Fund +5%

Finsbury Growth & Income Trust +0%
Henderson High Income +29%
Henderson Far East Income -2%
European Asset Trust -11%
Shell +83%

Hope this is what you're after. Don't take any of this as advice! I took early retirement myself during 2018 and manage my own portfolio outside of my workplace pension which sits in a multi-asset fund with L&G.

Here's calendar year performance of each since 2019 (total return)

Workplace pension
2019 +15%
2020 +5%
2021 +8%
2022 -10%

Own managed portfolio
2019 +21%
2020 +1%
2021 +17%
2022 -10%

If you want to discuss further let me know.

Of course, if people aren't happy with the mechanics of the fund they can always sell and more to a fund they're happier with.

As for the claim that only 35% of dividend income paid out is covered by dividends received, with the balance simply being returned capital, well if I thought that was the case then I'd sell!

robleo - the details provided are current holdings performance over the previous 5 years. Some I have held longer, some I have held shorter.

So, lgen I have held for many years. My capital, as of today, is 7% up. However, I've received dividend payments equivalent to 43% of my original investment.

As has been stated in some previous posts, it depends on when you buy. That statement becomes less relevant the longer you hold.

robleo - " . . . Zac can i ask you which have been your best previous performers, cheers"

Of course you can. For context I have around 22 holdings. Only 3 individual shares. Investment trusts for dividends and investment funds for capital growth specifically. I am a (very) long term holder. I rarely sell.

Here's my top 5, and bottom 5, at the end of 2022. Figures are 5 year total return.

Top 5
Baillie Gifford Positive Change Fund +107%
L&G Global Tech Index +97%
Axa Framlington Global Tech +85%
Greencoat UK Energy +60%
Fundsmith Equity Fund +60%

Bottom 5
Finsbury Growth & Income Trust +20%
Henderson High Income +17%
Henderson Far East Income +2%
European Asset Trust -1%
Shell -3%

L&G at the end of 2022 had returned +28% 0over the previous 5 years (total return dividends invested)

No advice other than don't ignore funds.

Damianmoore - so, out of the 24p paid out as a dividend, roughly how much is a return of capital?

" . . . in general they will say be prepared to stay invested in a share for 5 years, the big problem there is they don't tell you which 5 years"

Not a lot wrong with the last 5 years in my view (tr +38%). I guess it depends on your expectations!

Many thanks for the good wishes. Whether it's the right decision only time will tell. Capital will be/has been distributed as follows:

50% Legal & General International Index (order placed)
25% Smithson Investment Trust (will buy tomorrow)
12.5% Microsoft (bought)
12.5% Nvidia (bought)

I've set up a spreadsheet to track progress against simply continuing to hold BP.

Good luck to all!

Just sold at a tad over £5.14 per share. This has been a long term holding for me and I've finally decided that a total return of 46% is fine. I still maintain a holding in Shell, which is the larger of my 2 positions.

Not sure where I'll reinvest. I've given up a 4.3% projected yield from here so, if I decide to replace that income, it shouldn't be too difficult to achieve.

However, I'll probably not bother looking for income and will just focus on 3 key areas, global economy, technology and small/medium cap shares.

On that basis my short list is as follows, L&G International Index (global economy), L&G Global Tech Index, Microsoft & Nvidia (technology) and Smithson Investment Trust (small/medium cap). I just need to decide on the split and reduce down to 3/4 positions.

I wish all of you success and a growing share price from here . . . it's almost guaranteed now I've sold!

gman90 - they have changed their dividend policy. It's 40% lower than it was 3 or 4 years ago!

gma90

I think anticipated results are already in the share price. I'm not expecting much in the way of upside tomorrow. Personally I think the best we can hope for is an uplift in the dividend, although I think that's doubtful. I do hope I'm wrong!!

Government subsidies don't last forever. Once they finish how profitable will this sector be? Not as profitable as oil I hazard to guess!

Our strategy to transitioning into an EIC seems to be all over the place.

$3.3bn in cash and $800m of debt. So $4.1bn.

longtimeinvestor - I'm fully aware which camp ade2a sits in. He/she firmly believes that the vast majority of dividend income we receive is simply a return of capital.

Archaea? Isn't that the business we bought for over $4bn which made a $25m loss in the 9 months to September 2022? Cracking use of capital!!

Ade2a - we finally agree. And I had you firmly in the camp of those who think the majority of the dividends paid out comes from a return of capital and not income generated from holdings.

Mr Math - early days for you with funds. I've invested in global funds for years. As I have with my holding here. Over 1, 3 & 5 years the total return from my Legal & General International Index has outperformed my holding here.

And that includes the annual fund charges of 0.08%!

ade2a - I agree with you! The total income received by the fund does not fall short of payouts.

Where I do have a different view to you is in the mix of income generated by the fund. You seem to think that dividend income alone received by the fund is well short of what's needed to cover dividend payouts. I believe dividend income received covers the vast majority, if not all, of income required for payouts.

No major issue just a difference of opinion.

robleo - the problem, in my opinion (and that's all it is!), with investing in just UK listed shares is that you don't really gain exposure to the global economy.

The UK, on a gdp basis, is about 4% of global gdp. USA is about 65%. You've got to spread your net wider to gain exposure to the global economy.

I've been moving away from individual shares in recent times. I've held this for years and am happy with my returns. However, if I compare it with my L&G International Index Trust (Global Tracker Fund) it falls short over 5, 3 and 1 year periods.

I'd have seen a better return simply selling units twice a year to provide the income I receive from the dividend.