Windsor Buffet
05 Mar 2015
Re: Dividend problem I also read the newsletter and it appears to suggest there are still sufficient funds in the revenue reserve to pay this level of dividend for the next couple of years. I've no problem with them maintaining the divi regardless of whether the source is the revenue or capital reserve. the way other trusts, notably RIT, regularly dig into capital for dividend payments - it's more a function of the type of investments they hold. Finally PAT, or more precisely Sebastian Lyons at Troy, have taken a very strong position re future market movements and their reward for success, or punishment for failure, will be vastly in excess of any small movements from capital to revenue.
brownsfriend
01 Mar 2015
Dividend problem In the recent Newsletter the gloom just got gloomier. They can't afford the divi as the fund reduces equity exposure and goes even more heavily into cash proxies. The solution they conclude, is to maintain the divi by using capital (not very tax efficient) and to effectively repay this capital at some stage in the future. They feel that their investors value the divi at 1.4% ??? Call me old fashioned but this level of divi does not seem worth fighting for and better reduce it a little rather than nicking the low level of growth they forsee. My problem is I agree with many of their conclusions re prospects for the short and medium term and therefore will continue to hold - it just seems the way they are dealing with the divi problem could undermine their aim of preserving inflation adjusted capital by giving up some growth. I suspect the shareholders and board are of an older vintage and want to preserve the jam today!!
forddrive
20 Jan 2015
Personal Assets This is a great IT for those who want growth, but with some element of caution and international exposure thrown in.
