To recap, this is a real portfolio, described in detail on the 'Portfolio' page of this blog, with key changes reported as they happen. For the stock market investments (as opposed to the purely cash savings accounts, which are not included in this result) I track the total returns each month (i.e. changes due to the price of the security plus any income received), and deduct any new investment.
The result for 2012 is almost exactly 33%. In case you are wondering , although actually not the highest 12-month return I've seen - but it is much higher than the typical returns from the last few years.
However, I have to face a serious question: is this great result (well, great for me at least) because:
- I have found a perfect formula for making money on the stock market, or
- I am a Lucky Fool
- 50% high-yield UK dividend shares, drawn from the FTSE 250, including a few ‘legacy’ shares (that is a flattering term for ‘poor investments’) left over from the 2008 crash;
- 50% high-yield fixed-income securities, quoted on the London Stock Exchange and almost exclusively from the UK finance and insurance sector and consisting of corporate bonds, preference shares and PIBs (I sold my UK gilts during the year).
- UK FTSE 100: the iShares FTSE 100 (ISF) ETF is showing a year-to-date (ytd) of around 10%
- UK FTSE 250: the iShares FTSE 250 (MDD) ETF - ytd of around 25% (the best performance of any related benchmark I could find!)
- UK dividend shares:
- the iShares FTSE UK Dividend Plus (IUKD) - ytd return of around 17%
- the SPDR S&P UK Dividend Aristocrats ETF - ytd return of around 6% (since its launch in March 2012)
- UK corporate bonds: the iShares Markit iBoxx £ Corporate Bond (SLXX) - ytd return of around 12%
- UK gilts: iShares FTSE UK All Stocks Gilt (IGLT) - ytd return of around 1% (only!)
I am not a financial adviser and the information provided does not constitute financial advice. You should always do your own research on top of what you learn here to ensure that it's right for your specific circumstances.