So a chance to take a look back at the performance across the board for May. With work being so busy, all I managed to do was the usual morning daily check on my valuation (I can’t resist!) and the weekend check, but not actually notice what the wider market was doing.
As I covered in my “How I measure performance” – basically I take the value of the portfolio at the end of last month, add on any contributions for the month, and that was my starting value. End value is the value at the end of the reporting period. Simples 🙂
|Company Pension||2.54%||No income generated as all funds are in growth or reinvested|
|Personal Pension||2.53%||No income generated as all funds are in growth or reinvested|
|ISA 1||1.13%||No income generated as all funds are in growth or reinvested|
|ISA 2||1.21%||The performance does not include the income that was paid out into my account|
|ISA 3||3.68%||Although dividends are paid out, they remain in the ISA wrapper, and will get reinvested for growth. The performance figure includes both the Capital growth, and also income received which will get reinvested.|
|ISA 4||2.88%||Go T’ Pub ISA|
|FTSE-100||2.25%||This excludes any dividends|
|FTSE-250||2.77%||This excludes any dividends|
|FTSE-All||2.29%||This excludes any dividends|
|S&P500||2.26%||This excludes any dividends|
|Dow Jones||1.02%||This excludes any dividends|
|GBP/USD||-3.35%||This was taken on the spot rate on the close of the last day of the month. Going forwards I will pick up the exchange rate from www.xe.com for consistency and real life 🙂|
So apart from the drop in the GBP/USD (which may account for the performance of VWRL) another month of positive numbers.
Other than the relentless march upwards (at some point it will crash… won’t it?!) there are only two really notable things in this lot for me.
Firstly, my IFA seems to do a lot better with a larger pot (my pension with him is much bigger than my ISA). I am not about to throw more money at him for the ISA, but it does at last seem to be heading steadily in the right direction.
Secondly, my actively managed ISA. Once again this seems to be heading up faster than I thought possible. If it doesn’t go up again for the next four years it will still be at the same place I expected it to get to in 4 years! It’s times like this I wonder if I am being too pessimistic on my growth rates, but then I also think we have been in a long bull market, one quick crash and it will go.
In another couple of months the effects of my rebalancing the portfolio last summer will have finished going through the wash and I will get to see what this has done to my income and performance over the years. So far it isn’t looking pretty – my income doesn’t seem to really be growing given previous years increases rather disappointing.
I guess that is the cost of lowering overall risk and volatility by going with some trackers. And yes, before you ask, I have looked back at how some of my other stocks that were sold have done. Some up, some down so no huge difference!
As I was pulling together the review and performance for this month, I realised that I may have made a bit of an error on my rebalancing which I thought to share.
I rebalanced when the GTP ISA was in its infancy (i.e. worth about the same as an empty coffee mug). I aimed to balance my personal ISA across ETFs, Investment Trusts, “my chosen shares” and “High Risk”. I am almost now rebalanced (I need to buy some US ETFs) so I was starting to think things were good.
Then it struck me – I was looking ONLY at that ISA, and not across all my investments (excluding company pension and IFA managed stuff). Was this really sensible? Should I include the GTP ISA across my portfolio and include that as well?
After a short but frantic excel “hackathon” I rejigged my spreadsheet to show both across just my managed ISA and also the GTP and my managed ISAs.
The results? Within a few percent either way across investments I am pretty much on the spot for my balance if I include the GTP ISA.
So, on its own, I need to buy more ETFs. Combining the GTP ISA, I can pretty much buy what I want. A part of me thinks that this is just me tinkering to let me “play the stock market” which I know I am prone to do. I think I will try and resist and let it stay as just the actively managed setup.
What do you think? Should I stick with the allocation just in my actively managed ISA, or also include the GTP ISA?
There is also a meetup on the 15th June at the Rose and Crown – 47, Colombo Street, SE1 8DP London for anyone interested!