My Passive Investments - September 2019 (+0.82%)

A short term look on long term investing

Disclaimer

September was another exciting month for our travel blog. We’ve now been sponsored by 3 separate companies in the central belt of Scotland. And we’ve been offered 3 more sponsorship opportunities for our trip down to London in October.

We also uploaded our first ever video tour, of the new Hilton TECA Hotel in Aberdeen, to our YouTube channel.

I have now lost count of the number of specific passive income sources that I have. But, in general, we’re talking blog adverts, affiliate links (from a range of sources) and sales from my online store. And hopefully, in the coming months, I’ll be adding YouTube income to that list too.

In terms of passive investing, let’s see what happened in September.

As per usual, remember, my investment decisions are exactly that, my own. As as UK-based investor, I based each investment decision on my own research. These are, by no means, investment recommendations. Before making any investment decision, you must do your own research and/or speak to a professional.

A Reminder Why I Do These Reports In The First Place

You can read more about this in my first passive investor report, which I made all the way back in June 2018.

My Passive Investment Strategy

Long term, my aim is to invest a portion of my savings every month. An important note here is that the numbers you will see in this report reflect the gains and losses of my invested capital only. When I invest more, for example, I would not state this as a gain in the value of my portfolio.

Similarly, if I sell a portion of my investments, this would not be stated as a loss in the value of my portfolio. The numbers simply reflect the performance of the underlying investments. Simply put, a loss/gain does not take into account buying/selling assets. 

Vanguard Stocks and Shares ISA

All investments are held in a stocks and shares ISA with Vanguard. You can contribute anything up to the limit of £20,000 in the 2019/20 tax year. When it comes to investment income/selling any portion of my investments, thanks to the ISA wrapper, any income/capital gain is tax free. 

September Returns (+0.82%)

Amidst the ever-more-dramatic UK news cycle (I think we’re on Season 4, episode 3 of ‘Brexit’ now) returns were pretty steady this month at +0.82%.

I’m investing, as per usual, like a well-oiled machine. 25% of my after-expenditure savings are going towards my investments. The other 75% is being added to my first home fund (which will later be shifted into my Lifetime ISA).

I am continuing to invest in the globally diversified Vanguard FTSE Global All Cap Index Fund.

 
September 2019 - Investment Monthly Return
 

Returns Since Inception (+12.83%)

From the end of May 2018 to now (when I first started investing with Vanguard), my investment portfolio has grown by +12.83%.

 
September 2019 - Investment Returns Since Inception
 

Annual Return (+8.68%)

Over a one year period, from September 2018 to September 2019, my investments have returned +8.68%.

 
September 2019 - Investment Annual Return
 

Sector Breakdown

This is essentially how the FTSE Global All Cap Index Fund is broken down by sector/industry, since I hold a one-index-fund portfolio.

September 2019 - Investment Breakdown By Sector

Compared to last month, August 2019, all sectors has budged (some more than others):

The financial sector makes up more of my portfolio (+0.3%). As do industrials (+0.1%), consumer services (+0.2%), consumer goods (+0.2%), health care (+0.2%), utilities (+0.1%) and the ‘other’ sectors put together (+0.1%)

Technology makes up slightly less of my portfolio (-0.1%), as does the oil and gas sector (-0.4%), with a sizeable drop in the space of one month. The basic materials sector makes up slightly less of my portfolio now too (-0.1%).

If you’re wondering how these sectors are defined and differentiated from each other, check out this section of July’s report.

Geography

Here’s how my investment portfolio is broken down by country/region across the globe.

September 2019 - Investment Geographical Breakdown

Compared to August 2019:

Investments in North America have increased by 0.4% to 58.9% of my portfolio. Japan has also increased, by 0.1% to 7.5%.

Investments in Europe have fallen by 0.1% to 12.9%. Similarly, investments in the Asia/Pacific region (-0.2%), the United Kingdom (-0.1%) and the Middle East/Africa (-0.1%) have declined in percentage.

Central/South American investments have remained constant at 1.4%. As have investments in Eastern Europe, staying at 0.5% of my portfolio overall.

Individual Investments

If you take a look at the top 10 companies in the Vanguard FTSE Global All-Cap Index Fund (my top 10 investments), here’s how things have shifted.

 
September 2019 - Top 10 InvestmentS
 

Compared to last month (August 2019):

Microsoft remains my top investment but the stock has increased to 2% of my portfolio overall (+0.1%).

Apple, Amazon and Alphabet stay in positions 2, 3 and 4 respectively. The positions, also, remain the same as last month.

Facebook, still in position 5, has decreased slightly (-0.1%). JPM Chase and Berkshire Hathaway remain in positions 6 and 7 respectively, with percentages unaltered.

VISA, new to the top 10 this month, takes 8th position, with 0.6%. Nestlé and J&J are both bumped down a place but percentages remain the same as last month, also at 0.6%.

My top 10 investments account for 10.6% of my entire portfolio. So my portfolio is as concentrated in the top 10 as it was last month.

Dividends

My investments, as they have always done, automatically reinvest all of the dividends they accumulate. This is the benefit of an accumulating fund. I don’t have to manually reinvest all of the dividends myself.

Goals For October

Goals for September were met and exceeded! I increased my passive income amount. I secured sponsorship opportunities for Our Departure Board. More than I thought possible with this young a travel blog. We uploaded our first video to our YouTube channel (this was our upcoming project from last month) and we’re so proud of how it turned out. So happy that we can’t wait to make the next one. So what are my October goals:

  1. Continue my focus on increasing passive income. Increasing both the number of potential sources and the income from the sources I already have. Currently ad revenue, affiliate income and store sales.

  2. Secure further sponsorship opportunities.

  3. Upload more videos to our YouTube channel and continue to write quality, audience-focused content for both the travel blog and Capital Matters.

There we go. The September update is complete. And I hope, as always that you both enjoyed it and obtained value from it. As always, if you did enjoy the article, I appreciate every like, every comment and every share. On to October!

If you’re looking for resources to better your own personal finances, here are some of my recommendations:

Facebook - UK Passive Investing Group - Join A Like-Minded Community

My offers page. Earn some free money, grab some free points and get yourself some free products.

Rich Dad, Poor Dad by Robert Kiyosaki

The Little Book of Common Sense Investing by John C Bogle

The Intelligent Investor by Benjamin Graham