The portfolio has therefore expanded to a total of 24 shares and I have allocated £1,500 to each of the additions making a total capital input of £36,000.
Although this is demonstration income portfolio, it mirrors my own holdings in all aspects except weighting for each share. As with my investment trust holdings, I withdraw most of the income from my shares for living expenses. With this demonstration portfolio I will reinvest the income at the end of each year either into an additional holding or recycle the income generated into one of the existing shares.
With any portfolio, it is rare for all shares to travel in the same direction at the same time - this is why its good to have a mix of shares from diverse sectors of the market. It is therefore no surprise that performance since the start of the year has been mixed. Some shares have struggled to make progress this year - notably global miner BHP Billiton, owner of British Gas Centrica, more recently, oil services specialist Amec Foster Wheeler and engineering group IMI. Of course, the supermarkets Tesco and Sainsbury have slumped following the well documented problems and these two have impacted quite heavily on the portfolio, reducing the overall returns by around 3.5%. On the other hand, there have been some good gains to even things up - Unilever, Reckitt, Next, Imperial Tobacco, recent additions IG Group and Legal & General
At the close of business yesterday, the FTSE 100 was 6,722 - still below the level of 6,749 at the beginning of January 2014. The shares portfolio has returned 3.4% year-to-date which includes dividends of 3.7%.
The effect of the additions in recent months means it is difficult to make an accurate comparison. The only way to do this would be to unitise the portfolio. Also, some of the additions made later in the year have not yet contributed a full years dividend. However, it appears the portfolio has made a little progress since the last update in August.
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