Monthly Archives: March 2015

Rolls Royce PLC

The revered name in British engineering is Derby based Rolls Royce.
A member of the FTSE-100. []


With a market capitalisation of £17.5 billion. The annual report makes interesting reading


Order book £73,674 m (yes £73 billion)
Employeed of 54,100
Total assets on the balance sheet of £22,224 m
In 2014, they applied for 600 patents.

The major shareholders are:

Invesco Limited 4.99%
Harbor International Fund 4.02%
The Capital Group Companies, Inc 4.99%
Aberdeen Asset Managers Limited 5.16%
They offer a yield of 2.4% in these 0.5% times

Ayana Karim: Monday 23rd March 2015

Ayana Karim Pictures:-

Ayana Karim: Monday 23rd March 2015

The UK Economy, Employment, Tax and The Budget Deficit

The UK Government like the USA and other major G8 economies, spends more than it brings in as income from taxation. This has resulted in a massive structural debt, over 80% of debt to GDP.

Even though we see unemployment beginning to fall, the public accounts show that the government is still heavily borrowing, and dependent on the bond market to bridge the gap between its income and spending commitments. So how can this be when we have falling unemployment.

The reality is that many new jobs are now low skilled and low paid or zero hour contracts. This has resulted in the actual tax collected by government to be very small, so income into government from the improving labour market is not feeding into improving public finances. Until we face thus head on, the structural debt will continue to command punishing interest repayments (today at over £30 Billion a year) and we must accept that we actually need we high skills and high wages to create wealth and tax revenue, and that only comes from investment.


HSBC 2014 Annual Report

HSBC, The Hong Kong and Shanghai Banking Corporation has been making the headlines for all the wrong reasons.


The financials are HSBC are useful to know:


Its Market Capitalisation is £107,879m
(£107 Billion).
The dividend yield is 6%.

An international bank, whose annual report makes interesting reading:-


Profit before tax was US$22.8bn =

The balance sheet size is vast.

Total reported assets were US$2.6 trillion = £1.76 Trillion = £1762 Billion.

Yes, that is larger than the Annual UK GDP. So the balance sheet assets are over 100% of the UK GDP.

The Worldwide Healthcare Trust

The Worldwide Healtcare Trust is a £900m investment trust listed on the London Stock Exhange.


Investing in the global healthcare sector with the objective of achieving a high level of capital growth.


Managed by OrbiMed

Its top 10 investments are:

Bristol-Myers Squibb
Biogen Idec
Gilead Sciences
Regeneron Pharmaceuticals
Merck & Co
Ono Pharmaceutical

This makes up about 31% of the entire fund. Total holdings are 64 investments.

Legal & General PLC 2014 Results.

Legal & General PLC [] is a major player in the UK Financial Industry.
A member of the FTSE-100.
A £16 Billion company.


On 4th March 2015 it published its 2014 results. The numbers are incredible.


Assets under management = £709 billion
(UK GDP is £1500 billion, so L&G plc have assets under management that is equivalent to 47% of the UK GDP).

A dividend yield of 4%.

UK Government Borrowings: Feb 2015

Another month, guess what, take a lucky guess, it is the same old story, HM Government, spends more money than it receives via taxes and duties. Another deficit month, thus to bridge the gap, needs to borrow on the bond market.

In Feb 2015, the HM Government had to borrow money to meet the difference between tax revenues and public sector expenditure. The term for this is The PSNCR: The Public Sector Net Cash Requirement.

There were “only” 2 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office ( to raise cash for HM Treasury :-

11-Feb-2015 3½% Treasury Gilt 2045 £1,750.000 Million
04-Feb-2015 0 1/8% Index-linked Treasury Gilt 2024 £1,200.000 Million

When you add the cash raised:-

∑(£1,750.000 Million + £1,200.000 Million ) = £2,950.00 Million

£2,950.00 Million = £2.975 Billion

On another way of looking at it, is in the 28 days in Feb, HM Government borrowed:-

£105 million each day for the 28 days. We are fortunate, while the global banking and financial markets still has the confidence in HM Government to buy the Gilts (Lend money to the UK), the budget deficit keeps rising. What is also alarming, is the dates these bond mature 2024 and 2045. All long term borrowings, we are mortgaging our futures, but at least “we are in it together…

7% Return on Green Investment

In these low interest rate times, where can you find 7% for your cash ?
Simple. Green investment opportunities.


Assetz Capital the world leading Peer to Peer investment platform of business loans as the Green Energy Income Account.

The fund even as a Provision Fund to protect the money of investors.


The Green Energy Income Account diversifies the money invested across green investment funds again to maximise exposure across different investments and to reduce risk.

7% in a 0.5% base rate climate where we are now even seeing deflation.