April & May 2017 Stock Purchases

So it has been a busy 6 weeks in my actively managed ISA as I continue to build up my portfolio to my target allocation – I find it a little frustrating as I am forced to not buy individual shares yet, but this isn’t a bad thing as it holds me true.

ETF Purchase – VHYL

So I further topped up by holdings in VHYL on the grounds of not trying to time the market just buying the damn stuff! VHYL is now about right for my target (it is overweight at present, but as I add more to the portfolio then it will come down to around on target, possibly even below).

This brings the average price paid for the stock now to £36.52

Investment Trust Purchase – SMT

I am a big fan of the SMT IT for a long term buy and hold approach. Dividends are automatically reinvested so it will continue to grow. It’s not as cheap as I would like right now but the main thing is getting that money to work as soon as possible. Including the dividend reinvestments, the average price paid for SMT now is £2.74 – so it has fared very well over the last couple of years!

Investment Trust Purchase – DSM

What?! Another IPO IT? Didn’t I learn after WCPT?! Well… no! I took the punt on Downing Strategic Microcap for several reasons. Their track record with other ITs is good (although this doesn’t mean this will be!), but also their investment target. This will help (hopefully!) to reduce my desire to dabble into smaller companies. They are focusing on between 12 & 18 holdings with a maximum cap of £150M at the time of purchase. They are targeting a 15% growth per year, which I think is pretty darn punchy but then it is high risk. For me this will be like WCPT in that I will need to hold it for many years so a buy and forget. As it was at IPO it was free of charges so I paid £1 per share. Since it started trading it has already gone up, but that is just noise!

Overall my Investment Trusts are now slightly underweight on my target allocations, however with the dividend reinvestment this should gradually build up over time to get to the right balance. The following on purchases now for the next year or so (at a guess) are all going to be on trackers. I really do think this will degrade the performance, however it will reduce the volatility which as the portfolio has grown in size will mean I can sleep better at night!


Author: fireinlondon

Fighting the high cost of living in London

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