digger61
24 Jan 2016
Nice yield... Liking being able to buy these below NAV. Looking through the underlying assets nothing appears toxic. Worth tucking away as your hi yield bond play. Better value than IPE.
late developer
21 Jan 2016
to those who have writen since my posting many thanks for most helpful comments
Guitarsolo
13 Jan 2016
Re: ncyf SM, thanks and you're correct about the ratio of corporate bonds to pref shares. I was looking at a list of the pref shares and taking that to be the whole fund. But the principle remains, imho, that the risk of default on any (or many) of the holdings is low and therefore the income from them should be reliable. With a yield approaching 8% I think that is pretty good and investing through NCYF allows greater diversity than trying to own bonds or pref shares directly (at today's prices I don't see too much attraction e.g. I bought AV.B when they were a steal at 110p and a yield of about 7.4% but they were over 140p when I sold). Now I understand NCYF a bit better I can see the NAV falling a bit further but it could also rise with increasing asset prices. I'd add at under 55p if I had the spare cash, which I don't!I do believe we are getting closer to the next recession than the last. A crash is surely coming in the Far East. However, will it be enough to pull the US, UK and Europe down. Perhaps not. It's a funny old world these days, very imbalanced. Guitarsolo
sound money
12 Jan 2016
Re: ncyf Hi,Just one or two thoughts.NCYF is not mostly invested in preference shares. The majority of its holdings are in corporate bonds with a relatively short term, that's a protection to rising interest rates. It does contain preference shares and equities, about 20% if my memory serves me correctly.These have come back somewhat to varying degrees with market volatility since November. This accounts for the reduced NAV and share price.If interest rates remain benign and markets stabilise these should rise. A rapid increase in interest rates and or a real market crash then look seriously at reduced asset values.Over the medium term I'm in the benign camp.M
Guitarsolo
12 Jan 2016
Re: ncyf Judging by the 8-year chart, and excluding the market collapse of 2008/9, the share price has bounced around 52-66p so we're nearer the bottom of that trading range. In my opinion you buy this share for the income - yield at 7.8% currently - and don't look at the share price. NCYF is mostly invested in fixed-income assets (pref shares) and looking at the list of their major holdings you can't see too many of the underlying companies defaulting on their coupon. Therefore, the 4.31p divi (last year) is safe and should increase at a boring but predictable rate. I'm expecting 4.40p this year. So whilst PaulthePunk is right to say there are some other high yielders in the FTSE 100 that offer both the chance of capital gain and a rising divi (e.g. RDSB, BP.) - they also run the risk of cutting the divi or the share price falling by more than NCYF is likely to. To me, holding NCYF is just a proxy for not investing directly in preference shares. It gives me a better spread of holdings than if I tried to do it myself (which I have done previously, sometimes very advantageously, sometime not so). It's your money, your choice. Guitarsolo
paulthepunk
11 Jan 2016
Re: ncyf Uggghhhh! Horrible mate! Thats a decent enough timescale to expect a return too. (That's not to say I haven't done worse by the way, F-ing AIM stocks!)Maybe it's time to dump this, there are many cheap div paying FTSE 100 co's that would yield more and with potential capital gains to be had right now. Regards,Paul.
late developer
01 Jan 2016
ncyf re previous post. identical investment and reinvestment in Acorn now worth 35,543
late developer
01 Jan 2016
ncyf invested 20k in ncyf in january 2013 and have reinvested all dividends as soon as received . Investment now worth 19,254. am I missing something or has this been a thoroughly bad investment?
Fabius1
18 Dec 2015
Re: Falling NAV v Yield support GSPerhaps caught up in the concern over bonds.F1
Guitarsolo
17 Dec 2015
Falling NAV v Yield support I have to admit a certain amount of confusion as to why NCYF's share price continues its steady decline. I presume this is based on falling NAV as the value of its bonds and preference shares fall as we get closer to the day when interest rates rise.But with a solid yield approaching 8% I would have expected greater support for the share price. I mean, earning 8% on something that is pretty much guaranteed when you'd be lucky to get 1% for cash on deposit is astonishing in my book. I'd be topping up again if I had the cash spare......but I don't want to see the share price continually fall by something close to the yield, otherwise we aren't actually going anywhere!
geared bottom fisher
11 Dec 2015
Re: Anything else like NCYF? If you filter investment trusts by fixed income on trustnet you get the whole sector (23)
sound money
14 Oct 2015
Re: Anything else like NCYF? You might consider looking at the kinde of bonds that New City invest in. Check out annual and interim reports for ideas. Balcony beatty preference shares look good.M
Guitarsolo
14 Oct 2015
Re: Anything else like NCYF? Thanks Krayl, I took a look at CNKS and liked it - so I took a plunge with an initial purchase. Just in time as well as the share price has since done a mini-spike! I'm holding for the long term though.Thanks for the tip. Much appreciated. Guitarsolo
paulthepunk
12 Oct 2015
Re: Anything else like NCYF? Thanks for the reply GS, very well put.It does seem odd that in the current low interest climate, as you say, more people aren't coming over to these sort of funds. I'm still decieding what to do with some "low risk" cash and I will be looking deeper in to this fund over the coming weeks.This is a great thread also, thanks everyone! Got a lot (more) to look at now.Regards,Paul.
Guitarsolo
12 Oct 2015
Re: Anything else like NCYF? Paul, Correct, it's been in a downtrend but I guess then it depends when you bought. Perhaps I am luckier than some that I have an average entry price of about 60.5p but have picked up about 3.5p in divis so I might be marginally ahead...marginally!My read of NCYF's shares is that the yield should be the support. Ultimately, most of NCYF's money is invested in preference shares so, presuming they don't chop and change the portfolio too much, the coupon is predictable and dependable. That enables NCYF to pretty much guarantee the dividend (because the coupon is pretty much guaranteed). paying out 85% of the income (I think I am right about that) they can retain a small amount for further investment to help the fund grow moderately. I would not be too bothered about the NAV although I appreciate this is what has been dragging the share price downwards by the 12% you indicate over the last 18 months. But the yield is now about 7.3% and, in my humble opinion, given its security it is very attractive and should see investors piling in to use as a "foundation investment". Perhaps at the moment everyone is chasing the froth of higher risk investments but if a few big names start cutting their dividends those investors will wish they had the security of a NCYF in their portfolio!As for NG., it's my biggest investment! It's a solid as a blue chip can be. Investment and dividends are planned out up to 8 years in advance. IF you buy at the right price you can make a capital gain as well (my average is around 740p so again I've been "lucky"
. But at the moment I would say it is near the top of its range and the yield is under 5%. So it is not a buy at current prices for me. If it fell to 750p then it would compare nicely against NCYF.IMHO, both should be foundations to any stable investment portfolio. I would add to my holdings of both at the right price. GLAGuitarsolo
