By 
The Income Portfolio’s performance is summarised in the table. This month we will look briefly at the progress of each of our holdings, starting with those that have made us the most money.
Our best performer has been Next, the retailer. Written off in many quarters, it has made a total return of 36.7pc – and this is on an annualised basis, as are all percentage gain figures in the table. That return comprises a 30pc-a-year capital gain and dividend income of 6.7pc a year, based on our purchase price.
Next is ULS Technology, the conveyancing portal, which has produced an annualised capital gain of 32.9pc and income of 1.9pc a year for a total of 34.8pc.
Perhaps surprisingly, our third best holding is a bond. Premier Oil retail bonds have made annualised gains of 15.1pc for capital and 6.8pc for income, a total of 21.9pc. OneSavings Bank, the buy-to-let lender, has made us a total return of 20.3pc a year, comprising a capital gain of 16.2pc and income of 4.1pc.
Next is another fixed-interest investment: Bank of Ireland’s 13.375pc perpetual bonds, which are former building society “Pibs” (permanent interest-bearing shares). These bonds have gained 7.3pc in value on an annualised basis and produced income of 8.6pc a year for a total return of 15.9pc.
Legal & Generalshares have given us 14.1pc a year in total – 6.7pc from capital and 7.4pc from income. Tesco’s 6pc retail bonds have made an annualised capital gain of 7.2pc and income of 6.6pc, or 13.8pc altogether.
Newcastle Building Society’s 10.75pc Pibs have produced capital gains of 6.3pc a year and income of 6.8pc, a total of 13.1pc. Royal Mail shares, after recent falls, have gained 8pc a year since we bought them. With annual income of 4.5pc, the total return is 12.5pc. The Schroder Income Growth investment trust has gained 7.9pc and made income of 3.6pc for a total of 11.5pc.
Our only overseas shareholding, New Residential Investment, an American mortgage services company, has also done well, particularly in terms of income: its dividend return – on an annualised basis, remember – is 10.8pc, while capital gains are 5.3pc. However, there is also a currency loss of 5.9pc; taking all three figures into account gives a total return of 10.2pc.
Another holding has produced annual income of more than 10pc of our purchase price: Northern Venture Trust, whose dividends have given an annual return of 12.4pc. However, the board now expects “a downward trend in investment income”. A small capital loss of 2.4pc gives a total return of 10pc.
Crest Nicholsonshares are just 0.8pc higher (annualised) but income of 7.6pc makes the total return 8.4pc. F&C Commercial Property trust has gained 4.7pc and produced income of 3.7pc, a total of 8.4pc. Our Paragon Group bonds have gained 1.7pc and produced income of 6.5pc for a total of 8.2pc a year. For Lloyds Banking Group the figures are 1.4pc, 5.7pc and 7.1pc respectively.
Ladbrokes Group bonds are 1.3pc higher and have produced income of 5.5pc – a total of 6.8pc. Baronsmead Venture Trust has gained 1.8pc and made income of 4.9pc for 6.7pc in total.
The Invesco Income Growth trust’s capital gain of 3pc adds to income of 3pc for 6pc overall. LendInvest’s 5.25pc bonds have gained 1.4pc and made income of 2.6pc for a total of 4pc. Shares in Renew Holdings have risen by 0.6pc a year and made 2.1pc in income – 2.7pc overall.
We have three losers in total return terms. Regional Reit has lost 3.1pc (a 5pc loss and 1.9pc income) while Dairy Crest is 11.5pc a year down but income of 3pc takes the overall loss to 8.5pc. National Grid is our worst performer: a 12.9pc capital loss combines with 4.3pc income for a total deficit of 8.6pc.
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