IOMINVESTCOM
13 Feb 2017
BIST starts new life on a high after discount pledge [link]
Wynford2
05 Dec 2016
Re: What to do next? There's proposed to be a cash offer at 4% below NAV but for only 20% of the shares. All other shares get a new manager, but that probably won't change the discount (currently ~10%).
foolish learner
01 Dec 2016
What to do next? Who can explain in more simple language than the RNS As i read it the new issue shares are to be at NAV (currently about 118) less 4% then will they be circa 113p That would be higher than the current price for a lower (perhaps more sustainable) dividend I am sitting on a small loss at present and any advice/view as to sell or hold would be appreciatedFL
IOMINVESTCOM
30 Nov 2016
BIST board sacks BlackRock and switches to Aberdeen The tortuous turnaround of BlackRock Income Strategies (BIST + ), the investment trust formerly known as British Assets, took a dramatic turn today after the board sacked fund management group BlackRock after a year and a half in charge.Concluding a strategic review in response to an 18% slump in net asset value since BlackRock replaced F&C Investments in February 2015, the board announced it would stick to the new ‘multi-asset’ approach that replaced its previous global income remit, but would switch the management contract to Aberdeen Asset Management.Once BlackRock’s contract has expired, Mike Brooks and Tony Foster of Aberdeen’s diversified multi-asset team will manage the trust which will be renamed the Aberdeen Diversified Income and Growth (ADIGT).In a further twist the board of BIST has agreed terms to merge with Aberdeen UK Tracker Trust (AUKT + ), removing the investment trust sector’s only passive, index-tracking fund. This would increase the size of the trust, lower its cost ratio and improve the liquidity, or tradability, of its shares, it said.Aviva Investors, the largest shareholder in both trusts, has agreed to back the proposals. It has been selling stakes in investment trusts inherited from its Friends Life acquisition all year.Long-suffering shareholders, who endured poor capital growth but a high dividend under British Assets, will receive two more dividends, one of 1.635p, before the dividend is cut by 20% once the merger with AUKT completes. This would reduce the payout to a level more appropriate to the current low-yield environment, the board said. According to Numis Securities, at the current share price it would lower the 6.2% dividend yield to 4.8%.The investment objective will be amended again to target an average annual return after costs of 5.5% over Libor, the inter-bank lending rate, over five-year rolling periods. This replaces the current aim of inflation (CPI) plus 4%.The recently adopted zero discount policy will be dropped in the face of the fund’s continued low rating. The shares, up 2.75p to 108p today, closed last night at a discount of around 13% below net asset value. Adopting a more flexible stance towards the discount will avoid the problem of mounting share buybacks – the trust bought back 7.6 million in the year to September – while the trust remains out of favour. This could shrink the trust and worsen liquidity in the shares without narrowing the discount, it said.A 20% tender offer will give BIST shareholders the chance to offload some or all of their shares before the merger takes place. AUKT shareholders will be able to cash in 40% of their stakes before the combination with BIST occurs. If these are taken up in full the new trust will start with £450 million of net assets, said Numis.BIST chairman James Long explained the board had been disappointed with the performance for shareholders over the past 19 months.‘The negative absolute returns delivered, coupled with our concerns over the sustainability of the dividend in the current low yield environment, led us to initiate the strategic review that we have now concluded. ‘Our comprehensive review has re-affirmed our conviction that a well-managed multi-asset portfolio within an investment trust structure is an attractive proposition for shareholders and is highly relevant in the pensions and savings market,’ he said.Shareholders may pay slightly more in future, however. Under the agreement Aberdeen will be paid an annual management fee of 0.5% of net assets up to £300 million and 0.45% above £300 million. This compares to the 0.4% of gross assets, including debt, paid to BlackRock.As head of Aberdeen’s diversified multi-asset team Mike Brooks is the co-lead manager of the Aberdeen Diversified Growth Fund. He joined Aberdeen last year from Baillie Gifford and has 22 years of investment experience. Tony Foster is a senior investment manager in the same team and joined Abe
IOMINVESTCOM
30 Nov 2016
intention to appoint Aberdeen Asset Management and a proposed Merger with Aberdeen UK Tracker Trust plc Proposed change of investment objective and policy, intention to appoint Aberdeen Asset Management and a proposed Merger with Aberdeen UK Tracker Trust plcFurther to the Company’s announcements made on 1 August and 28 September 2016, the Board of Directors (the “Board”
has now completed its strategic review. As part of that review it has undertaken a detailed analysis of the Company’s investment performance and attribution since its move to a multi-asset portfolio in February 2015. It has carefully considered the Company’s investment objective and policy, as well as the level and structure of its gearing, in the light of current market conditions, has consulted with numerous shareholders and has also sought and considered a number of proposals from other investment managers.Having concluded this review process the Board has agreed heads of terms with Aberdeen Asset Management (“Aberdeen” and Aberdeen UK Tracker Trust plc (“AUKT” to propose the following changes to the Company:Appointing Aberdeen's Diversified Multi-Asset team, with Mike Brooks and Tony Foster as new lead portfolio managers;Significantly enlarging the assets of the Company by a merger with AUKT and renaming the newly combined company Aberdeen Diversified Income and Growth Trust plc (“ADIGT”;Managing ADIGT under a diversified multi-asset strategy with a change in investment objective to target returns of LIBOR+5.5 per cent. per annum (net of fees) over rolling five-year periods;Revising the dividend policy to include a reduction in the current dividend level that recognises the current low yield environment; andReplacing the current zero discount policy with a more flexible approach that recognises the constraints imposed by gearing and by the more illiquid nature of the future portfolio.As part of the overall changes, the Company will also be making a tender offer for up to 20 per cent. of the shares in issue at a tender price equal to NAV (cum income, debt at fair value) less 4 per cent. and the costs and expenses of the tender offer. The tender offer will be subject to shareholder approval and inter-conditional on shareholder approval of the change in investment objective and policy and the merger.Appointment of Aberdeen Asset ManagementThe Board is pleased to appoint Aberdeen Fund Managers Limited as the AIFM, conditional on relevant regulatory approvals and finalisation of the terms of the formal management agreement. The Company intends to continue its multi-asset investment strategy and will be managed by Aberdeen's Diversified Multi-Asset team. The Board takes confidence from:the breadth and depth of resources of the Diversified Multi-Asset team;their track record and capabilities in this area;Aberdeen’s continued commitment to the management, support and promotion of investment companies; andthe competitive cost level at which these investment management services will be provided to ADIGT.The Company’s new lead portfolio managers will be Mike Brooks and Tony Foster. Mike Brooks is the Head of Aberdeen’s Diversified Multi-Asset team and is the co-lead manager of the Aberdeen Diversified Growth Fund. Mike joined Aberdeen in 2015 from Baillie Gifford and has 22 years of investment experience. Tony Foster is a Senior Investment Manager in the Diversified Multi-Asset team and joined Aberdeen in 2014 following the acquisition of Scottish Widows Investment Partnership.Aberdeen currently has assets under management of approximately £312 billion with approximately £90 billion managed in multi-asset mandates. The Aberdeen Group manages over 90 investment companies and other closed-ended funds representing approximately £17.9 billion of assets under management, of which 19 are listed in London with a total AUM of £6.7 billion (all figures as at 30 September 2016).Aberdeen’s appointment will become effective upon termination of the Company’s existing management arrangements with BlackRock F
Cadenza
29 Nov 2016
Re: They should wind this up I am not expecting a dividend cut but it has been talked about. My main concern has been the 5 year consistent underperformance to the sector with a cumulative rise of only 13% in sp, there has been no point in holding this depreciating asset for a yield alone. The reason I bought a couple of months ago was due to the widening discount which started in jan feb this year. I am holding on as it would be senseless to sell BIST on a 13% discount and before the board make decisions on the future as it is not delivering its objective: The Company will target a total portfolio return of UK Consumer Price Index (“CPI” plus 4 per cent. per annum, over a 5 to 7 year cycleIt is either a bargain or a basket case, I am wary of it because bonds are not the place to be, further widening of the discount is bearish IMHORe gearing, doesn't the daily NAV take into account borrowings?
azzalyzarc
28 Nov 2016
Re: They should wind this up The NAV seems to be holding up - even a slight uptrend. The underlying holdings are in fairly solid assets for the most part I think (not something esoteric like specialist property, litigation, debt... which is harder to value/trade). So why windup?What is impact of 18% gearing if they did windup?Agree mgt messing around / lack of clarity is poor - I would have thought putting some certainty back would improve the SP.Do you see a threat to the divi yet?I acquired some shortly after change of strategy last year - will hold for a little while longer, az
Cadenza
28 Nov 2016
They should wind this up Forget a management change again, this should be wound down and funds handed back to shareholders at NAV
bigbunny
02 Nov 2016
Strange that Foolish Learner is comforted by the share price falling more slowly !The Board pays lip service to shareholders interests but the days and months pass and nothing happens - except of course that the Directors and Blackrock continue to rack up their fees and the share price continues its comfortingly slow decline. To my mind this trust represents the financial services industry at its worst.
foolish learner
27 Oct 2016
Re: A black mark for Blackrock Have the Board really done nothing?Since July the holding in Equities has gone from 37.5 to 45.6% Fixed income has gone from 26.7 to 41.6%The Nav has hardly changed but yes the price is down showing a good buy relative to NavThere have been no statements as to the risk of a dividend cut, but a substaial statement rather than the reference to r"review" would be more positiveThis is my worse performing trust but still paying a good divi on my inflated buy pricePrice fall is slowing and this may be the point to invest for me and average down a little. hopefully with better results than some of my latest investments like AMFW today and the fall in the "safe property" like BLNDCan't win them all but good divi income is sometimes worth holding for aka HSBAFL
bigbunny
26 Oct 2016
A black mark for Blackrock Schwee had it right in a recent post. This large trust desperately needs a new competent Board and a manager which can generate some performance - the monolith that is Blackrock simply cant do that. The Board's suggestion that, after initially handing the management contract to Blackrock on a plate, it might reappoint them now tells you all you need to know !
IOMINVESTCOM
14 Sep 2016
Want a 4% return? That's no longer realistic [link]
allthatglistens
01 Aug 2016
Re: Ryan overhauls Income Strategies Tru... dividend cut on the way?
schwee
20 Jul 2016
Re: Ryan overhauls Income Strategies Tru... Poor performance combined with the policy of buying back shares to keep the discount narrow is unsustainable. No easy solution, unless the £60m of debt can be prepaid. The Trust needs a new Board who can take a fresh look at everything. The current Board is compromised because it appointed Blackrock and endorsed share buybacks.
IOMINVESTCOM
24 Jun 2016
Re: For anyone interested Added myself this morning
