marktime1231
18 May 2018
Re: Added Actually no, see the IPE board, IPE is so badly managed it has just sacked its manager. I recently gave a long analysis of what is good and bad about it in comparison to other income trusts, it is over-charging thanks to too many small targets, was not using premium which at times was up to 8% to expand and as a result it feels they were complacent about progressive performance. Nevertheless a safe and attractive yield and a valid component of an income seeker's portfolio, at the right price, but it has yet to obviously reach the bottom of a long down trend and so better value may lie ahead.But the yield of 5p on a sp of 75p is (only) 6.7%, where did you get 8.33?The premium has recently dropped off to nearly par at which point I took a small stake.But apart from that ....
budu
18 May 2018
Re: Added Is IPE well enough managed for you? Yield 8.33 (premium 1.20).
marktime1231
18 May 2018
Added another tranche when the buy price dipped under 61p this morning. Still underweight, not sure if there will be a cheaper opportunity ahead because the trend seems back towards 62-63p. The next ex-div is the 1.4x one so presumably the sp will rise to greet that before the end of July.May go all in at the next step, can't see where else to get a well-managed 7.2% income.
marktime1231
17 May 2018
Treasury cleared out Yet another £1M or so share sale from Treasury at a 5% premium, inevitably NAV enhancing and we trust 7.2% yield sustaining.NCYF remains at a high premium but now the Treasury has been emptied of shares where does it go, might the sp bubble up? Hopefully the board will arrange new shares for issue, while ever there are opportunities to make value investments it is surely a good idea to sell new shares at a healthy premium.NAV is still 2-3% off where it was before the fear over interest rates and fright over perp share cancellations sparked by Aviva. There must therefore be modest value opportunities in the existing portfolio, not sure where to study new non-retail fixed interest opportunities.
marktime1231
09 May 2018
Aviva compensation The FT tells me Aviva have offered compensation to those who were spooked into selling their threatened preference shares at a loss, at a rate of £14M over whatever fraction of £450M traded. An average of £7K each to 2,000 punters but that mixes private investors and institutions.Good news for Pref, I know you have lost out and claimed, hope you get a meaningful payout.Compensation I hope also to affected ITs but which and how much, up to 3% of trades? I heard Aviva prefs were in the NCYF portfolio but not top ten, and IPE held £1.5M so a top ten there ... but compo only to those who lost through selling. Any compensation is of course welcome but as Pref pointed out Aviva's threat spread collateral damage across this type of asset.
marktime1231
04 May 2018
A small beginning to celebrate the completion of a SIPP cash transfer (it took 3 months, shameful) I have taken a small starter stake in NCYF today at 61p, trending upwards but more than I wanted to pay so I have placed a trailing buy order if the sp dips before the next ex-div. In preference to IPE trending down towards my entry level.
sigil
02 May 2018
Re: Stymied Windlesham Don - Sorry for the delay of this reply, you are of course correct in believing that I was referring to NCYF. I really must re-read original messages before answeringRegardsSigil
FRTEB
29 Apr 2018
Re: Stymied Interesting discussion. Re NCYF - as I've said before don't go all in from the outset (with anything). Instead buy in tranches when you feel the time is right. And if you're forever trying to find the bottom (guilty as charged!) then good luck - we all try that - some of us get lucky from time to time... But don't forget that even now NCYF is offering a return (yield) of well over 7% pa. That's close to the FTSE long term average rate of return even without any sp appreciation. There are lots of shares out there that don't manage that! For income seekers like me I think NCYF sits in the 'must have' category. Re SQN - I looked at that a while ago and read through their last(?) results. The feeling I was left with was that it was a real hotchpotch of investments eg - marine support vessels, anaerobic digestion plants, glass manufacturing furnaces, IT & telecoms equipment, etc. Where is the expertise in all these areas coming from? And then there's the solar manufacturing via Suniva - has that mess been resolved yet? Because of the wildly differing investments I struggle to see how SQN management can know a market well enough to avoid making mistakes. Also, from memory, one investment that stood out was buying a boat and leasing it out but allowing the lessee to walk away within a few months if they wanted to, leaving SQN holding the baby. Sure enough the lessee walked away but fortunately SQN found someone else who wanted to lease the boat, but where was the security for your investment? To my mind it seemed loaded with risk. That was one example but there were others I also wasn't too happy with with from a good business practice/investment point of view so I decided to stay well clear. This is all just my opinion mind, and the cost of my research was zero, which is probably what it's worth...
marktime1231
28 Apr 2018
Re: Stymied Thanks and well done for the calculations update, its a shame there is no edit button ... very often data on platforms and websites is out of date, you need to do your own sums to work out the current or forward dividend yield.A renewed sentiment for high yield fixed interest investments should follow a correction in the outlook for growth / inflation / interest rates / govt bond yields?The market price of the bonds in the NCYF portfolio should rise, so NAV should rise from 56.8, so NCYF might be heading back to a sp of 62-63p maybe? A real global growth scare eg China reining back under 5% and all of a sudden anything solid yielding 6% or 7% will become very popular ... or are you convinced by global momentum?Challenging my own assumption that it is too late for NCYF at 60.6p, and wondering why contrary to the logic SQN sp has fallen back ... the UK story diverging from the US one? Sometimes there are more variables than datapoints.Just wish oh how I wish I had started in on NCYF at 57.xI will be watching this very closely in the next few days, maybe NCYF is a better option than doubling up SQN after all, and I will reappraise IPE too.
strapuk
28 Apr 2018
Re: Stymied Apologies, my last post referred to IPE. NCYF's last 4 qtrly divs were 1.45p and 0.99p x 3 for 4.42p, so at 60.60p NCYF yield is 7.29% in an ISA, and IPE should have read 5p/ 76p = 6.58% if held in an ISA.Apologies for getting things wrapped round my ears there!Hold both, and will continue to do so, but doubt I will be adding.Good w/e all.
strapuk
28 Apr 2018
Re: Stymied Based on Offer price of 60.6p, last 4 qtrly divs have been 1.25p, so yield is 8.25% if held in an ISA. HTH.
budu
28 Apr 2018
Re: Stymied I was going by the iii Factsheets on this site. A minute ago they showed IPE 8.12%, NCYF 7.29%. My own holdings of IPE gave me 6.32% over the last financial year.
Windlesham Don
28 Apr 2018
Re: Stymied sigil - Are you referring to IPE or NCYF? I have held both for years.Currently IPE pay 5p dividend on a 77p SP, giving a yield of 6.5%,NCYF pay 4.42p dividend on 60.4p SP, giving a yield of 7.33%.HTH,
sigil
28 Apr 2018
Re: Stymied The fact sheet shows a yeald of7.29. Three different calculations, interesting.
Windlesham Don
27 Apr 2018
Re: Stymied Just a point of correctness for Budu, IPE yield 6.5% at the moment. Still 4% above inflation, but not over 8% as quoted.
