Rober01
01 Nov 2016
Re: Winding UP The brexit article 50 thing in March had occurred to me. On past history of other IT wind ups I have experienced, this one will no doubt make provision and probably is already doing so, to move into cash/fixed interest to cover the outstanding cost of the zeros and as far as possible the income shares (51p was the last figure I saw). Capital shares zero????. I will stay put,, subject to what the Company has to say. This is without doubt somewhat of a gamble!! To offset this I have over the years sold these at various times at a profit.
strapuk
31 Oct 2016
Re: Winding UP Yes, apologies for the banana finger syndrome! I read it after I posted it (rather than before) and wondered what on earth I'd said!! Hope the follow up helped.You make a very good point about March 2017 and article 50. I hadn't thought of that. It will certainly be very interesting. I wonder if they'll move into Index-linked or ultra-short dated gilts between now and March 2017 to try to mitigate any negative effects of Article 50?
Hardboy
30 Oct 2016
Re: Winding UP There are some typing mistakes caused because keys are adjacent, which turn the meaning on its head. You've illustrated it very well. I read the first message & could not understand your conclusion to stay out given the logic you had so clearly laid out. As for your logic, you've outlined my exact understanding; but like you I'm not 100% confident my logic is correct. M&G did tell me the cost of winding up a similar size fund; and I calculated it to be around 0.13p per share. I suppose it won't be long before they outline what options there will be to roll over the investment to another (new?) fund. I suppose one complication of winding up in March 2017; and Teresa May saying Brexit will be triggered in March 2017, is that markets are going to be very sensitive at that time, and could be swinging wildly one way or another. Let's just hope the winding up coincides with a n up swing.
strapuk
29 Oct 2016
Re: Winding UP Apologies - should read "I'm staying put" not "out" ! Been a holder since Oct 2010 and overall will come out of this with a decent enough return, think it works out at compound 5% assuming bid price of Income shares is what is paid back. If we get closer to my 52p calculated in previous post, then that'll be over 6% pa and a little Brucie Bonus!
strapuk
29 Oct 2016
Re: Winding UP Just checked the NAV announcement. Please correct me if I'm wrong, but this is how I see it :Capital shares receive 122.83224p per share at wind-up.Income shares then get the next 70p per share on wind-up plus any accrued income not yet paid out.Growth shares get any thing else over 192.83224p per share.There are 250,503,505 shares of each class in issue.Current total NAV is 118.27p + 56.75p = 175.02pIf it assumed that there is no change in overall NAV between now and March 2017, then the Income share holders should receive 175.02 - 122.83224 = 52.18776p per share plus any income not yet distributed (and probably a small deduction for costs of winding up).Current bid price is 44.5p, so I'm hoping for about 7.5p per share uplift if the Trust is indeed wound up. So I'm staying out - especially as there will be at least 2 move divs to come between now and March.Well that's my simple take on things and I could well be totally wrong!Of course if the markets tank between now and March, Ca[ital shares will still get their 122.8p and the Income shares will bear the burden of market loses. Growth shares are currently worthless and in all likelihood will remain so.Just my simplistic take on things and likely to be wildly wrong!! Please do your own research though and don't take anything I say as being correct!
Hardboy
16 Oct 2016
Re: Winding UP So they've just announced the last major dividend. After that there will be 2 smaller ones. It's certainly been a good income investment yielding a rising 10+% since I bought it. I'd be interested to hear others' thoughts about whether it's better to get out now or wait for the winding up. My understanding is that at winding up we should get slightly less than the NAV (but not a lot less.) So if share prices are going to hold, then the decision to hold & wait looks sensible. Of course in these uncertain times with volatile oil prices and forex rates, and emotional market reaction to anything Brexit of US Presidential then there is an element of risk in holding on; but I think that's my decision at the moment. The other benefit of holding, as Rober points out, is there may be an attractive alternative fund to roll over into. All thoughts gratefully received.
Anniel
21 Sep 2016
I am here because I own 16,143 shares in MGHU,( income and growth units) I have read this thread with interest and having enjoyed the high income, I would like to ask how many more payments we will receive before the wind up? I may sell my shares now rather than wait until the bitter end!
Rober01
27 Jun 2016
Re: Winding UP There is intended to be a roll over vehicle for those, who like me, wish to continue per the last report.
Hardboy
26 Jun 2016
Re: Winding UP As it is now under 9 months away I thought it time to do some proper calculations, so I wrote to M&G to confirm our understandings and ask how much the winding up costs would be. They were very helpful. As for winding up costs, they can not give an estimate, but told me the last fund to by wound up cost around £325k. At a closing price of 43.25, the market cap is £114m. So doing a bit of calculating, I think the winding up will cost around 0.13p per share - considerably less than the current discount to NAV. This makes it well worth buying still - a yield of around 14% and a good chance of a healthy capital gain. IF markets behave themselves to next March. And that is a big IF - all we can really predict about the coming months is markets are likely to be unsettled.
Rober01
05 Mar 2016
Re: Winding UP Prudential OverviewOne of the UK's largest life insurers, Prudential has operations around the world in the UK, US and Asia. As well as providing financial services under its own name, the Pru also owns M&G Investments.
Rober01
05 Mar 2016
Re: Winding UP Yes, true enough.
Hardboy
04 Mar 2016
Re: Winding UP Thanks, Rober,"some £300 million of shares are held by Prudential"Isn't there some historic link between M&G & Prudential? Not important enough for me to do the research now, but I'm sure in the past some Prudential funds became M&G - whether Prudential sold some funds/division to M&G; or whether the Pru operated funds for M&G, I'm not sure - something like that anyway.
Rober01
04 Mar 2016
Re: Winding UP Sorry!! £300 million , many more shares.
Rober01
03 Mar 2016
Re: Winding UP Incidentally I do not know if you are aware that some 300 million of these shares are held by Prudential, an organisation not known for its risk taking!Food for thought.
Rober01
03 Mar 2016
Re: Winding UP As at today BUT wind up is a year away and as at today the situation is:-The Board of M&G High Income Investment Trust P.L.C. announce that the net asset value (NAV) at 12
0 noon today was £417.6 million. Income Shares * 55.37pCapital Shares 0.00pZero Dividend Preference Shares 111.33pIncome & Growth Units 55.37pPackage Units 166.70pwhat happens in the next year obviously depends on cash in hand and performance.I suppose you pays your money and makes your choice.As to rollover, this could be one of several alternatives on which the board has yet to decide.Regards
