Doggedly persevering
15 Jul 2017
Little housing landlords L&G about to provide tiny prefab housing - and be a landlord. Looks a good idea to me.Anybody got any idea about how the business case stacks up for this? Or if this is a diversification too far.[link]
acsatix
15 Jun 2017
Re: Times Again-Bank quizzes L pension liabilities offload mmmm....this thing is not too good... ultimately many pensions may be lost or heavily cut... seems like yet another ponzi scheme... I shall proceed to sell my lg shares pronto.
Krayl
11 Jun 2017
Re: Times Again-Bank quizzes L&G over pensio... Yes I saw this too and initial reaction on seeing the headline was to worry about the SP. However on reading the article don't think it should have an adverse effect (I hope!)
Chicken Lips
11 Jun 2017
Times Again-Bank quizzes L&G over pension risk perils Bank quizzes L&G over pension risk perilsLegal & General is at the centre of a new Bank of England inquiry into overseas financial deals struck by Britain’s biggest insurers.Sam Woods, head of the Prudential Regulation Authority, summoned the chairmen of the largest insurers to a meeting last week.He has demanded extensive information on reinsurance contracts used by the insurers to offload billions of pounds of pension liabilities.L&G makes much more extensive use of these deals than most of its peers, passing responsibility for funding pension payments to third-party companies based in beneficial tax jurisdictions such as Ireland and certain states in America.Woods said he understood the economic motivation for moving pension liabilities to international reinsurers. However, he warned that the practice left the retirement income of millions of British pensioners in the hands of firms over which he has no regulatory powers.Woods, 43, a former Treasury official who was appointed secretary of the Independent Commission on Banking in the wake of the financial crisis, previously asked to be notified of every new foreign reinsurance deal.Last week, he also sought information on which countries were receiving large chunks of Britain’s pension liabilities; what guarantees insurers were offering pensioners in the event of a collapse of a reinsurer; and evidence that the risks were being distributed in different companies and jurisdictions.“Legal & General has been one of the main users of reinsurance to transfer risk and ultimately that is used to reduce the company’s capital requirement,” said Colm Kelly, an insurance analyst at UBS.“The UK regulator has highlighted that closer scrutiny is needed for these reinsurance transactions.”L&G, led by outspoken chief executive Nigel Wilson, has been a stock market darling of the past decade, with its shares rising tenfold since the spring of 2009 — closing on Friday at 258.20p.Wilson said: “Mark Carney and the ratings agencies are very supportive of what we are doing.” He added that L&G had restructured its business model in response to the Solvency II insurance regulations.Wilson has had the ear of government, proposing innovative ways for insurers’ capital to be used to support infrastructure investment. His former communications chief, John Godfrey, is now head of the Downing Street policy unit.The Bank of England declined to comment.[link]
Chicken Lips
28 May 2017
L&G Eyes Tata £15bn steel pension - times Insurance giant Legal & General has held talks about an audacious buyout of the £15bn British Steel Pension Scheme.The FTSE 100 insurer has approached the trustees about taking over some, or all, the liabilities, according to industry sources.The scheme was adopted by Tata as part of the £6.2bn acquisition of Anglo-Dutch steelmaker Corus in 2007. It has about 130,000 members — current and former workers — and a deficit of about £5bn on a buyout basis.[link]
Chicken Lips
26 May 2017
L&G Ireland Move Post Brexit- Reuters In a win for Dublin's campaign to attract financial services firms after Britain's vote to leave the European Union, Legal & General Investment Management (LGIM) will move the operations subject to regulatory approval, L&G said on Friday.[link]
Krayl
26 May 2017
Re: watching the grass growing I have held for about 9 months in my income portfolio and have got a 12% return. This sort of boring is exactly what I am looking for!
Alan Tittymarsh
26 May 2017
Re: watching the grass growing "Since 1999...."Would anyone today have held shares for that long? It's all about timing.I've held these for nearly a year and seen a 40% gain + chunky div. So LGEN has been anything but boring for me. Having said that I don't think the sp will be going anywhere fast from here...maybe the 280s if we're lucky. It's been a slow but gentle climb since December (up 10% since then) and the sp has consistently stayed above its 50 day ma which is a positive. I sold half my holding yesterday but will wait and see with the remainder.
acsatix
25 May 2017
Re: watching the grass growing Unless you're relatively rich, buying a house every year to average out the costs isn't desperately practical though________yes you buy only when u can... same for shares I reckon.... of course housing to let can be a leveraged investment if one hs access to decent credit.
Boring Bernie
25 May 2017
Re: watching the grass growing AcsatixAye, that's true, property prices and rents have well outstripped the stock market over that timescale. Making decisions on what asset classes to hold is always much easier in retrospect though !Timings, important too of course. If you'd bought a FTSE100 tracker at it's peak in 1999 ( ~ 6900 ), you'd have only seen a rise of 600 points, so less than 10%, but if you'd bought shares in Legal and General when it bombed to below 40p ( I didn't have the balls to do so, but some on here did ), then the story would be very different.This probably shows lots of things, but it certainly shows it's sensible to :-1. Spread risk amongst asset classes and2. Invest on a regular basis to avoid only buying on highsUnless you're relatively rich, buying a house every year to average out the costs isn't desperately practical though
Eadwig
25 May 2017
Re: watching the grass growing acastix, "buying house to rent in hull would be better. "Funny you should say that, LGEN have sunk £600m into the build-to-rent residential sector, which I'm finding very hard to play right now, other than via TEF (AIM listed) or INL (AIM listed and not really the right sort of residential build to let anyway).I'm convinced its the next big thing in UK residential property, and I'm expecting someone to produce a REIT to invest in it, but nothing so far. I'm afraid all the big, early returns might be being made by none-listed companies. Maybe LGEN is my best bet at the moment, but I can't see them multi-bagging, somehow. They also have a 5% stake in my favourite micro-cap small miner, RBW, which seems a bit on the wild side for them. (Its actually part of a much bigger mining group which LGEN are probably associated with, so I imagine that's how it came about).
acsatix
24 May 2017
Re: watching the grass growing Hi boring bernie... I give it to you but the stock moved up 25% since 1999... underwhelming.buying house to rent in hull would be better.
Boring Bernie
24 May 2017
Re: watching the grass growing Grass that's more than doubled in length over five years, but also cuts itself twice a year in order to pay a dividend so you can pay the gardener to do the mowing ?Mind you, in retrospect, it grew too quickly a couple of years ago and needed a dose of pesticide to sort itself out
acsatix
24 May 2017
watching the grass growing what kind of grass grows as slowly as LGEN?
Mr Return
03 May 2017
Re: DB pension derisking Chicken lips: "No panic on the Titanic". My ex employer , a FTSE 100 company sourced the pension scheme out to L&G. Our Pension board had no clue and it was ( very ) expensive. L&G appear to know what they are doing and the trend is their friend. Large corporations outsource the pension risk, but at a price.I reckon L&G might be at 285 Pence in Dec 2017 with a healthy dividend yield. then, Brexit will have gone belly up and high yielding stocks such as L&G will be everybody's darling ( Woodford etc )BOE will not be able to increase interest rates and inflation will be allowed to gallop for a few years. Until 2021 I reckon since the conservatives will secure a landslide victory on June the 8th.Good luck to us all.
