I ask this for the benefit of readers as much as for my own; the point here being that any serious investor must ask the same questions and run similar exercises to the ones I’m about to discuss with data from portfolio spreadsheets that they must maintain in order to keep on top of their investments.
When do random changes become a trend? Only when they are assembled with the benefit of hindsight. So it was hard to spot that in mid 2016 the income portfolio’s performance may be fading, especially as it was still adding value. Indeed, from mid 2016, when hindsight shows the fund reached a high-water mark relative to the FTSE 350 low-yield index, the income portfolio gained 21 per cent to reach what remains its all-time high in August 2017.