April 2016 Update

IMG_20150518_192047Another month goes by, I am realizing that the blog is turning in a collection of “updates” so I’ll try to make it a little bit more interesting in the coming weeks adding posts not only centered on trade activity.

April 2016 saw markets being quite stable, volatility cooled down a little and all in all numbers were on the rise. Good Month!

I managed to exchange some GBP at interesting rates (Brexit fears drove down the Pound), but trade activity was somewhat reduced as stocks are pretty high right now. This is not actually “bad” per se, I need to replenish my coffers, and not investing too much is providing just that. May is going to see more action because there are at least 3 stocks on watchlist that are about to go ex-div and time to get on board them is approaching… 😛

LH Index Fund

At the end of April the LHIF is sporting a good increase, nothing major but growth is there. The Index Fund is a measure of the total returns of the portfolio, so in reality is not that important in a DGI prospective. Shares are now worth 100.38 Euro, for a +0.73% return on the average price of the shares I hold. In reality the fund lost about 1.3% in the very last trading day of April, oh well, it happens! Soon enough there will be a dedicated page with graphs and more data. 😛

Composition of the Index Fund is the following:

BOND 36.22%
STOCK 60.55%
CASH 3.23%

DCA/ Increased Positions

FRA:MUV2 – 8 @ 173 EUR

LON:NXT – 20 @ 53.5 GBP

New Positions

BIT:TRN – 420 @ 4.9 EUR

Terna is an Italian utility dealing mostly in Electricity. Actually we could say that it “IS” the utility as it’s the owner of the electrical grid in Italy (bought in December last year), and as a matter of fact that is quite a huge competitive moat to overcome for any other competitor out there. 2015 was very good for Terna, they increased dividend and have a very upbeat attitude about the 2016-18 term. Major issue was entering in Terna almost at it’s record high, reason why I have decided to enter in two instalments resulting in an average price of 4.9 Euro (still high, my target was 4.5).

 

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16 thoughts on “April 2016 Update

    1. Ciao ATL,
      Not yet, I have to work out the tax implications here in Pizzaland of owning a broker account outside of the country. It’s proving to be a long and messy thing, and in the end if I need to pay someone to do calculations for me I might loose all the advantage of changing account… So I am still looking for the right platform at the moment, I hope that in May I can wrap it all up and start, especially because with the first trades that I wanted to do I would have started off with some good gains already… But if I have learnt something in this year of investing is to make double sure of tax implications because in the end a little mistake can wipe off one year of investments…
      ciaociao
      Stal

      Liked by 1 person

      1. Actually costs… Why settle for a second tier broker when you can go for cheaper and better ones? Tax returns are workable for sure, it just takes a little bit of time to get it sorted… 😛

        Liked by 1 person

  1. Hi Stalflare, great buy and nice blog 🙂
    As a fellow European and MUV2 stockholder I wanted to ask you, how much dividends do you “get out” nett from MUV2? In my case personaly, Germany takes 27% (withholding tax) and in my country I get taxed at abou 15%, so roughly I get out more then a half of dividend nett. Keep posting.

    Like

    1. Ciao Marko,
      Thanks for stopping by! Double taxation is a pain in the ass for me, especially for many European stocks. In case of Germany I need to calculate 27%+26%, to make things easier I calculate 50%, although it’s more correct to calculate 45.98%… There is a way to get back some of these taxes, but the governments made it especially expensive and strange, so it actually has a meaning if you are a major investor, not for us small fish… 😦 Glad you like the blog, are you a DGI investor too?
      Ciao ciao
      Stal

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      1. Yes I’m also DGI, just starting this year and I think it’s great, at least it make me feels great for doing something for my future 🙂
        Btw I also own some american stock, can I hear it from you, how is going in Italy if you recive dividends from american stocks? Is it the same as 15% US tax + 10% tax home country or is it different?

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  2. Ciao Marko,

    Actually is 15%+26%, so it’s around 40% (still better than the European stocks). Again, here you can claim some of the taxes back but the situation is like for the other stocks, it takes a lot of time and money and for the amounts that I am making there is no real economic use in starting the process… 😦
    Look at the UK for single taxation, of course you need to take on currency risk there… Do you have a blog setup yet? 😛
    ciao ciao
    Stal

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  3. I don’t know if I will have time to write a blog, but never say never 🙂
    In UK example you only get taxed once at your home country, so 26%? What if you buy UK company on US stock exchange (ADR stocks)?

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    1. In that case you get double taxation as you must pay US and then your country tax. Yes, UK stocks at the moment are taxed only 26% (if you live in Italy).
      ciao ciao
      Stal

      Like

    1. Ciao Tristan,
      Glad to have u on board! The YoC is 4.1%, 3.02% net. NG gets me a little bit more as I have a lower entry point, 3.83% net. Yes they are pretty much the same type of company, once monopolists, state owned, turned into private companies. Not much dividend growth, but a stable boring business. Portfolio must have that too… 😛
      Ciao ciao and thanks for posting!
      Stal

      Liked by 1 person

  4. Ciao DL,
    No, the allocation came “by chance”, as I was lucky to sell a family asset and got that amount of money for it. At the time it was not good to push all the cash into the main market so I decided to allocate the full amount in a sort of “deposit”, without recurring to saving accounts (in Italy they are totally worthless). The biggest chunk of that bond PF will expire middle next year, and unless there are other opportunities in bonds (which unfortunately there aren’t) I will consider to put them in stocks. If I can keep 40/60 by finding other bonds I would be much happier as I feel that bonds are a great tool to ensure an hard core growht (if brought to expiration date) which at the moment I cannot grant with stocks only (by nature stocks are volatile).
    ciao ciao
    Stal

    Like

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