The “Long Haul Fund” is my attempt of getting an “immediate” state of the art of all the investments that I am following. Pretty much like professionally managed funds I can boil all the activity down to a performance indicator, in our case Total Return. (Thanks to Dividend Life for this post on how to create a Fund)
TR stands for Total Return. I try to add in the calculation all costs and everything that I can possibly calculate if I were to sell all my financial assets now, and see what I am left with. This means that the percentage is not 100% true, because some calculations are made with approximation, but it’s a very close call.
YoC is Yield on Cost. This metric is useful to me as I can see what is the return that I generate yearly (and from inception) of all my dividend, interests from bond and option trading activity. Clearly these gains are also part of TR, but YoC it’s an important measure when the horizon of the investment is 15+ years.
TER is Total Expense Ratio. TR has all costs included, but YoC don’t, as one of the original targets is for the fund to yield AT LEAST 2% net every year, Total Expense Ratio is important to calculate the net return. Also it’s an important metric to keep under scrutiny as commission and taxes can cripple the best trading system sometimes.Targets The aim of the Long Haul Portfolio is to generate a sort of “pension fund” to go along with the meager pension that I am likely to receive from the Italian government. Unfortunately it seems that it’s not an Italian issue only, governments are cutting down on pensions and increasing the retirement age more and more, the certainty that I have today is that all the taxes that I must pay to the national pension scheme are going to be given back in a very small part. This is why in 2014 I have decided to take a more active role into the management of my investments. Reporting Dividends and Options Here you find one report of the total sum of dividends and options, which is actually the vast majority of my monthly income, a graph for dividends and one for options only. The idea behind this is to track in an easier way the developments of the portfolio as a whole, but also of the single components. <!– wp:shortcode –> <!– /wp:shortcode –> Reporting on LH Fund
- Share price (it all started at 100, this figure it’s also the Total Return of the investment)
- Currency Effect on TR (I tracked it only in recent months, that would explain the flat line at the beginning). This figure shows how currencies influence my TR (Total Return).
- Yearly Realized Gain/Losses in stocks, options and totals (for tax purposes the two compensate when calculating taxable income)
- Currency Allocation of the stocks that I hold
- Industry Allocations
- Annualized NET YoC (NYYoC) and Annualized TER (Y Total Expense Ratio). YoC shows how much the portfolio returns every year in terms of Options, Dividends and Interest, in this case I made an annualized figure.