Windlesham Don
09 Aug 2017
Re: Why Buy this Fund? "A good spread of global oil and miners across currencies."Agree that the spread looks OK, but has the individual stock selection historically been flawed? The top holdings look like a decent spread of majors to me, but I wonder whether the managers have been reactive rather than proactive when buying and selling holdings."Active managers adjusting the balance between stocks on the up or down."This is what the managers should be doing, but the poor recent NAV performance is evidence that to date they have failed."A good income distribution policy, which was terrific, is now good, and may become terrific again, making it an attractive long term holding even if the sp is dogging along."High income distribution is only part of any holding's absolute return, and a high absolute return is what we all strive for. If the NAV is falling and forcing the managers to lower the dividend then the future does not look bright IMO."A way of tracking and trading the cycle in commodity prices, good gains to be made buying and selling at the right times if necessary with a bit of patience."Again, this is what the managers should be doing, but the evidence is that they are not. The last 6-12 months have been excellent for commodities, as the cycle has turned coinciding with companies increasing efficiency. If the managers cannot increase NAV now then I fear for the future.The situation with this IT is curious, as the same managers are also involved with BRWM whose performance has been excellent in comparison (and with lower charges). I can only assume that the selection of oil and gas companies by the managers has dragged performance back.I will continue to keep this fund on my monitor list, but something fundamental will need to change for me to buy. However, I wish all holders the best of luck, and as with all opinions DYOR.
marktime1231
08 Aug 2017
Re: Why Buy this Fund? A good spread of global oil and miners across currencies.Active managers adjusting the balance between stocks on the up or down.A good income distribution policy, which was terrific, is now good, and may become terrific again, making it an attractive long term holding even if the sp is dogging along.A way of tracking and trading the cycle in commodity prices, good gains to be made buying and selling at the right times if necessary with a bit of patience.The bad of course is that they have let NAV discount drift out to 8% from a more typical 3%, even though the policy is to intervene beyond a 2% discount. Which is good if you have speculated while the discount was stretched (NOW), are hopeful of intervention (maybe next year) or natural closing back up (if there is a whiff of upping the dividend again), and are also hoping that NAV is trending strongly upwards due to improvements in key holdings (NOW).I accept the argument that they are rather expensive considering the lack of intervention and their cut now looks steep after the dividend was (rightly) trimmed. Perhaps someone will be making those points rather sharply if they fail to execute the agreed trust policies.That aside, why would you not buy this Trust?
Windlesham Don
08 Aug 2017
Why Buy this Fund? I've been looking at this IT for a while, but have not bought as yet. It's performance has not been good over 1, 3 or 5 years against it's competitors (I already hold BRWM). The discount to NAV isn't excessive compared to the rest of the sector and I don't like the management fee, which at 1.4% is high. For me the only attraction is the yield at the moment. The fund seems to have a decent mix of miners and oil majors and so IMO the NAV should be increasing at a good rate. I'm not sure why it isn't. Any thoughts on this fund gratefully received.
marktime1231
07 Aug 2017
Wider yet NAV was up to 76.84 as at 4 Aug including 1.27p cash, before further improvements in the share prices of major holdings First Quantum, Shell, BP, RTZ, BHP.First Quantum is looking like it was a good add in Jan-Feb 2017 when it troughed as low as CAD 2.6. With Copper prices heading towards a 3-year high of $3,000 / tonne the sp has returned to CAD 13.4 and up 5% on Friday, Toronto closed today for the annual get-savaged-by-midges holiday in Canada.And yet the sell price of BRCI is stuck at 70.75 so a discount of 8.6% ... which will become 10%+ by the time the above movements are reflected. Don't get why more people are not excited about this.Nervous ahead of the non-US oil producers meeting? Surely efforts will continue to shore up oil prices even if they are not immediately successful and despite the Permian shale frenzy.
marktime1231
28 Jul 2017
But no buy back The BRCI half-year report released today, which principally covers the period to 31 May and comments on events after, reveals that the board decided not to exercise an option to buy back up to 20% of its shares in the tender window of August 2017. At the time of the decision the discount average over the 6 months was only 2.8%, and considered close enough to the 2% trigger not to proceed. I think BRCI managers feel they are quite a small fund £90M or so, and do not want to become any smaller, size is obviously important when you are the manager (and your fee is based on ...).The report reveals for the half-year income was 2.72p per share vs dividends of 2p. So cash to spare, running at an accumulated nearly 1.2p per share.Yesterday's NAV was 76.67p so this morning's sell price of 70.5p is at nearly a 9% discount. OK so today there was a slump in minerals and the recent NAV gains may reverse a little but the underlying trend is positive, as the report confesses they are not necessarly popular but prospects are good. The stocks of underlying companies are improving as commodity and oil prices recover and they manage financial performance better.The benefit of hindsight, hoovering up a chunk of shares off the market at 8-9% below NAV might have been a good idea after all, you could always sell them back when the discount narrows.Shame. And a potential cue for activist intervention to shake up this complacency if the discount does widen to 10%. In fact if I was a market player I might be accumulating a stake right now, there seem to be plenty of willing sellers at 70-71p, with a view to expressing my opinion to the board.There is another window in February.My nose for value said this ws a Strong Buy, but it would take some signs of more aggressive active management so I will stick with holding on for now.
marktime1231
27 Jul 2017
Wide discount Why is BRCI selling at 70p when underlying NAV has increased to over 76p based on yesterday's stock prices, commodity trading is stronger and better financial performance is being reported in the underlying stocks ... the biggest holding Shell up 1% today on a positive report and a sustained dividend which is what BRCI is all about. I would estimate the discount has now reached 9-10%.Normally the discount widens when the underlying trend is heading downwards, but in this case I would say the NAV is just as likely to trend upwards over the rest of the year even though these stocks are volatile and can swing several % a day. The sensible trimming of BRCI payouts from 6p to 4p per year means the yield is more sustainable, well covered by cash, and still attractive at 5.5% today.So what would you do ... use the spare cash to ... up the dividend slightly or embark on a programme to narrow the discount with buy backs or trading the underlying stock positions. Other big player income trusts manage sp-to-NAV actively and that is no bad thing.I have steadily built a long term holding in my SIPP starting at 65p two years ago and most recently at prices 72-78p, the income is terrific. Also a large new chunk at 69p in my short term trading account having sold out at 83p in Nov too early as it turned out.We might not see 88p again anytime soon but I am ready for a bounce back to 75p+ please.
Ripley94
27 Jun 2017
Re: W... morning green Picked some up @ 67 .. Did not look at history ( sleepy !!! ) there were buys @ 66.95 earlier.
Ripley94
23 Jun 2017
W... morning green Don't know if i have looked at this before , Good discount oil play .
lambrini girl
16 Feb 2016
Re: BRCI and gold indeed +10% in couple o days...BANG ON!!
lambrini girl
12 Feb 2016
Re: BRCI and gold strange..BOTH oilies AND Miners up 10%+ and this not moved..???!!! catch up next week
tatttie
05 Jan 2016
Gold Not sure about historical gold holdings you could get that from previous annualr reports. However, this trust has maintained its dividend despite all the problems with commodities in 2015. Amodest increase in demand should be reflected immediately in the share price.
jsan22
03 Jan 2016
BRCI and gold hi all, looking at buying a bit of commodities action, purely on the basis that they have sunk over a multi-year period! (though I'm well aware this can continue)I was looking at this for a one-stop fund, but I notice the gold holding is very low, and has been for the last 6 months, according to trustnet (at around 5 %)I was just wondering if this is a typical gold allocation for this fund, for those of you have been in a long time.thanks,j
EssentialInvestor
15 Sep 2015
Re: First tranche I had my first lot this afternoon.Having watched BRCI for over 6 months.
FRTEB
11 Sep 2015
Re: First tranche Hi soi" Commodities certainly have been hammered of late " Not half! Long term these should be OK - I mean, the world hasn't stopped revolving and as long as we continue to make things and build things then there will always be a demand for what comes out of the ground.RegardsBill
soi
11 Sep 2015
Re: First tranche Hi FRTEBI bought at similar a few days later.Shame it`s dropped.Added yesterday at 66.Commodities certainly have been hammered of lateGLsoi
