October 2019 portfolio update

Another month of markets bouncing around in response to the ongoing brexit yawnfest. Sterling movements seem to be driving a lot of prices, I'm staying patient as although the big international blue chips have come down in price, I suspect they have another leg down if chances of a hard brexit recede. As sterling appreciates it will also start to bring into play a number of businesses listed outside the UK that I'm interested in, but we're not quite there yet.

Portfolio
The portfolio had a slight fall during October, but was ahead of the wider markets which were pulled down further by some big names posting disappointing updates. The portfolio was down -0.2% compared to my chosen benchmark the Vanguard FTSE All Share Accumulation fund which was down -1.4% over the same period.

Top 3 holdings:
888 Holdings +17%
Dignity +9%
Fulcrum Utilities +7%

Bottom 3 holdings:
Craneware -6%
SAGA -7%
Tate & Lyle -9%


October share purchase: FSFL
Foresight Solar (FSFL) was added to the portfolio in October. As I posted here I've been keeping an eye on renewable energy investment trusts for a while, but have been reluctant to commit due to the premium on most of these. A share issue brought the premium on FSFL this down a little so I decided it was time to invest.

FSFL have 54 solar installations, 50 in the UK and 4 in Australia. They are the largest of the three solar energy investment trusts listed on the FTSE. They listed in 2013, and have generated around 8% total return since IPO, most of which is via dividends which are in excess of 5%.

UK solar subsidies dried up a couple of years ago, since when UK based installations have slowed, so solar funds have looked overseas for attractive investments. Capital growth is likely to be fairly pedestrian, but I'm comfortable with this, and will be happy taking the chunky dividend. The share issue was used to reduce borrowing which will enable further expansion where the opportunities present themselves.

Probably also worth noting that during the first half of the year, FSFL produced enough electricity to power 130,000 homes.