The Hawking portfolio is an “income” portfolio holding ~30 Closed-End-Funds (CEFs) with a target average annual return from distributions (primarily dividends) of greater than 8%. Current holdings are as shown in the screenshot below:
Performance of the portfolio since inception is beating the benchmark AOR fund quite comfortably (by ~7%):
The portfolio is intended to be close to a Buy-And-Hold portfolio with re-investment of dividends being the only frequent necessary adjustment. Occasionally, I will review current holdings and make adjustments if it looks as though a fund is over-priced (i.e. trading at a premium to Net Asset Value – NAV) and there may be better opportunities that are underpriced (i.e. trading at a discount to NAV). However, this is not a portfolio in which I will “rotate” funds on a defined (e.g. monthly) schedule. There may be other reasons for adjustments when there are “Rights” offerings or when funds are merged or dissolved.
At the present time I have ~$1,400 (from dividend distributions) available for re-investment and I will be adding 75 shares of NMAI – a global fund of diversified equity and bond assets. This fund is presently paying a dividend of ~8.5% and is trading at a discount of ~12% to NAV – i.e. we can buy $1 of NAV for 88 cents – so we have potential for “growth” in addition to “income”.