Monthly Archives: October 2016

UK Mortgages October Dividend.

UK Mortgages PLC is an investment fund managed by Twenty Four Asset Management.

Today UK Mortgages is paying out 1.5p per share for it’s October Dividend.

UK mortgages has an issued share capital of 250,031,969 shares.

Thus today, its is paying out:-

250,031,969 x 0.015 = £3,750,479.53 to its shareholders.

that is £3.75m cash.

RIT Capital Partners October Dividend

RIT Capital Parnters PLC is the Rothschild Investment Trust that is member of the FTSE-250 Index. It has substantial stake of the personal wealth of The Rothschild family.

With assets of £2,614m, yesterday it paid its dividend to shareholders 15.5p per share.

with 155,351,431 shares issues, it paid out:-

155,351,431 x £0.155 = £24,079,471.81

That is £24m

A yield of 1.7%

The Debt of Time Warner

Time Warner, the owner of the HBO and CNN network is now subject to a take over from AT&T.

The financials of Time Warner are interesting.

It’s debt position is interesting:-

Coupon Maturity Face Amount $m
7.25%    10/15/17    $500
9.15%     2/1/23       $602
7.57%    2/1/24        $450
6.85%    1/15/26      $28
6.95%    1/15/28      $500
8.30%    1/15/36     $200
6.88%     6/15/18    $600
6.63%     5/15/29    $1000
2.10%     6/1/19      $650
4.88%     3/15/20   $1400
4.70%     1/15/21   $1000
4.75%     3/29/21   $1000
4.00%     1/15/22    $500
3.40%     6/15/22    $500
1.95%     9/15/23   $700
4.05%    12/15/23  $500
3.55%    6/1/24     $750
3.60%    7/15/25   $1500
3.88%    1/15/26    $600
2.95%     7/15/26   $800
7.63%    4/15/31   $2000
7.70%   5/1/32     $2000
6.50%   11/15/36  $1000
6.20%    3/15/40   $600
6.10%    7/15/40  $1000
6.25%   3/29/41   $1000
5.38%   10/15/41  $500
4.90%    6/15/42   $500
5.35%    12/15/43  $500
4.65%    6/1/44       $600
4.85%    7/15/45    $900
Total : $23,680m

AT&T Buys Time Warner, and will take on the $23.68 Billion of Time Warner debt.

The Debt of AT&T

The American Telephone and Telegraph Company (AT&T) has announced its plans to buy Time Warner, the owner of HBO and CNN. AT&T is a part of American history. It is a giant, a pioneer, and has followed the innovations of strategy of the global leader in telecoms and media, British Telecommunications PLC.

Interesting to understand some very basic financials of AT&T.

Number of shares of AT&T: 6,150,000,000 (that is 6.15 Billion shares)
Share Price: $37.49

Market Capitalisation (Value) = 6,150,000,000 x $37.49 = $230,563,500,000

That is $230 Billion.

Now what is the debt of AT&T ?

That is $126,835,952,257

Yes, $126.8 Billion.

The Standard Life Equity Income Trust

The Standard Life Equity Income Trust is a £188m London listed investment trust.

It’s top 20 holdings make up 50% of its total investments:-

BT 4.2%
Sage 4.2%
Vodafone 3.2%
RELX 3.0%
Aviva 2.7%
Micro Focus 2.6%
Rio Tinto 2.5%
Imperial Brands 2.4%
Supergroup 2.3%
Legal & General 2.2%
Close Brothers 2.2%
Beazley 2.2%
Saga 2.2%
River & Mercantile 2.1%
Prudential 2.1%
Britvic 2.0%
Tyman 2.0%
Safestyle UK 2.0%
NewRiver Retail 1.9%
National Grid 1.9%

A yield of 3.5% in times of 0.25% base rate.

Standard Life’s October Dividend.

Today, Standard Life paid out its October Dividend. 6.47p per share.

Standard Life’s issued share capital consists of 1,975,668,483 ordinary shares. A useful note is that Standard Life manages the BT Defined Contribution Pension Scheme, the BT Retirement Savings Scheme.

BT, the world’s most dynamic, media and telecommunications corporation

Thus today, the dividend cost Standard Life:

1,975,668,483 x £0.0647 = £127,825,750.85

That is £127m cash. A yield of over 5%.

The Honeycomb Investment Trust plc

The Honeycomb Investment plc is a specialist lending fund which seeks to provide shareholders with an attractive level of dividend income and capital growth through the acquisition of interests in loans make to consumers, small businesses and other counterparties in specialist lending market segments which are underserved by mainstream lenders.

The investment manager is Pollen Street Capital Limited.

The loans originate from:-

It is these loans that are then bought by the Honeycomb Investment Trust plc.

Its portfolio is:-

Top 10 Holdings:-

Consumer Loans –Secured Loans 64.92%
Consumer Loans –Unsecured Loans 14.91%
Micro SME Loans Loans 9.00%
Organic Originations Loans 6.97%
Freedom Finance Limited Equity 1.81%
Pay4Later Equity 1.33%
Cash 1.06%

Total 100.00%

The Fundsmith Emerging Equities Trust

The Fundsmith Emerging Equities Trust is a £230m London listed investment fund, run by Terry Smith

Top five holdings are:-


Its geographic split is:-

Asia 55%
Europe, Middle East, Africa 26%
Latin America 11%
Cash 8%

Total 100%

The Scottish American Investment Company PLC

The Scottish American Investment Company PLC is a London listed £400m investment trust. it is managed by Baillie Gifford & Co Limited, the Edinburgh-based investment firm.

The top ten holdings are:

1 Coca Cola 2.5%
2 WPP Group 2.4%
3 TSMC ADR 2.4%
4 Johnson & Johnson 2.0%
5 Procter & Gamble 1.9%
6 Sonic Healthcare 1.8%
7 Kimberly-Clark De Mexico 1.8%
8 Linear Technology 1.8%
9 Partners Group 1.8%
10 Pepsico 1.7%

Makes up 19.9% of the fund.

a 3.6% yield.

The Phoenix Group

The Phoenix Group is a UK FTSE-250 Listed Life Assurance company, that buys closed life books.

It has around 4.5 million policyholders and £52 billion assets.

On Wed 28th September, Phoenix announced it was buying Abbey Life from Deutsche Bank who are in the eye of current storm.

Interesting to see the debt structure of Phoenix Life.

yes, total debt of £12,148 Million

Phoenix offers its shareholders an yield of 3%.

HM Government Borrowings: September 2016

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 September 2016, 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” 4 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office ( to raise cash for HM Treasury:-

20-Sep-2016 1½% Treasury Gilt 2047 £2,874.9990 Million
14-Sep-2016 0 1/8% Index-linked Treasury Gilt 2046 £800.0000 Million
06-Sep-2016 1½% Treasury Gilt 2026 £2,874.9970 Million
01-Sep-2016 0½% Treasury Gilt 2022 £3,150.8860 Million

When you add the cash raised:-

∑(£2,874.9990 Million + £800.0000 Million + £2,874.9970 Million + £3,150.8860 Million =  9700.882 Million

9700.882 Million = £9.700882 Billion

On another way of looking at it, is in the 30 days in September, HM Government borrowed:-

£223 million each day for the 30 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 2022, 2026, 2046 and 2047. All long term borrowings, we are mortgaging our futures, but at least “We are in it together…

The Decline in Revenues Year on Year at Royal Dutch Shell

Royal Dutch Shell is one of the largest energy companies in the world.

It has two share classes, Shell A for Dutch shareholders and Shell B for UK Shareholders.
[Shell A]
[Shell B]

Look at the revenues:-

31-Dec-11 $470,171 Million
31-Dec-12 $467,153 Million
31-Dec-13 $451,235 Million
31-Dec-14 $421,105 Million
31-Dec-15 $264,960 Million

One can see year on year, the effect of falling energy prices affecting the revenues of Royal Dutch Shell