This is just a follow on note really from the recent portfolio update. I fired up ShareScope this morning and low and behold the UKVI portfolio had powered straight through the £60k mark.
After starting in March 2011 with a virtual pot of £50,000 it’s good to see this next milestone reached relatively quickly. It’s also good to see that this isn’t just a high price and an excessive valuation, as the historic yield is still around 4.4%, well above the market average.
This means the growth so far is more likely to do with the growth of the intrinsic values of the underlying businesses, rather than just PE expansion based on improving investor sentiment (although we’ve seen a lot of that in 2013 too).
You can see the results in a bit more detail in the chart below from ShareScope. Each yellow ‘T’ is a dividend, each green ‘B’ is a buy and each red ‘S’ is a sell. After a busy early period in 2011 where the initial positions were being built, you can see that the trading frequency is about one buy or sell per month, which is all part of the systematic investment strategy used to run the portfolio.
The next question is how long will it take to reach £70,000? I have no idea, but if it can hit that level in 2013 then I’ll be very happy indeed.