Monthly Archives: March 2017

The North Sea Oil: New Discovery.

The news broke on Monday 27th March, that a new field of oil has been found.

Hurricane Oil has found a field in the North Sea of 1,000,000,000 barrels of oil.

They made the discovery of a huge new field:-

Now lets put that into context.

The world consumes 96 million barrels of oil.

So Hurriane’s new field:

1,000,000,000 barrels of oil / 96 million barrels of oil a day = 10.4 days new supply of oil for the world.

The Manchester and London Investment Trust PLC

The Manchester and London Investment Trust is a London Listed Investment Fund.

The Investment Manager is M & L Capital Management Limited. and London

The Top Investments:-

Microsoft Corp
Polar Capital Technology Trust
Scottish Mortgage Investment Trust
Smith & Nephew
Worldwide Health Trust
Dadide Campari-Milano
Pernod Richard
Astra Zeneca
Roche Holdings
The SME Loan Fund
The Shareprice is £3.34 but the actual asset value is £4.08.

Thus a discount of 20%. What this means ?
Buying a £4.08 asset for £3.34.

The Bankers Investment Trust

The Bankers Investment Trust is a very old fund, founded in 1888, by the directors of Williams and Glyn Bank, which is a part of the Royal Bank of Scotland.

Since 1966, the dividend has grown year on year.

The top ten holdings are:-

British American Tobacco
Royal Dutch Shell
Delphi Automotive
American Tower
American Express
Cooper Cos

The Trust is managed by Henderson Investors.

The largest shareholder:-

5.4% owned bt Investec Wealth & Investment

a yield of 2.3%

Astra Zeneca March 2017 Dividend.

Yesterday, AstraZeneca paid out this March 2017 Dividend.

The dividend was £1.502 a share

Now how much will that cost the company ?

As at 28 February 2017 the issued share capital of AstraZeneca PLC with voting rights is 1,265,386,327 ordinary shares of US$0.25.  No shares are held in Treasury.  Therefore, the total number of voting rights in AstraZeneca PLC is 1,265,386,327.


1,265,386,327  * £1.502 a share = £1,900,610,263

That is £1.9 Billion of cash

That is a yield of 4.6%

The Shell UK £Sterling Dividend benefitting from £Sterling’s devaluation

On December 2nd 2016, Shell PLC announced the quarterly dividend of US$0.47 per A ordinary share (“A Share”) and B ordinary share (“B Share”).

That $0.47 = 37.16p.

Now, three months on, on March 10th 2017, Shell announced the quarterly dividend of US$0.47 per A ordinary share (“A Share”) and B ordinary share (“B Share”).

That $0.47 = 38.64p

Are you can see the Dividend of $0.47 remains the same quarter on quarter, but due the devaluation of £Sterling, the UK£ payment has increased by 1.48p per share.


The 16.17 ISA Selection

L&G Global Health & Pharmaceuticals Index

 L&G Worldwide Trust

 L&G Asian Income Trust

L&G US Index

L&G Global Technology Index

L&G Global Equity Index Fund

Emerging Markets Index Fund

L&G UK Property

Global 100 Index Trust

International Index

Mixed Investment 0-20% Fund

Mixed Investment 0-35% Fund

Mixed Investment 20-60% Fund

Mixed Investment 40-85% Fund


Case Study: London House Prices

London house prices are on a different plateau. London has become a separate economy to the rest of the UK.


Consider to areas in North West London. Harrow and Stanmore. They site in Zone 5 on the London Underground.

Semi-Detached Houses.

Harrow. Last sold in 2015 for £615,000

Stanmore: Last sold in 2016 for £802,000

The connection between salary and house price is broken.

HM Government February 2017 Borrowing

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 February 2017, 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:-
23-Feb-2017 1½% Treasury Gilt 2026 £2,299.9970 Million
15-Feb-2017 0 1/8% Index-linked Treasury Gilt 2026 £1,250.0000 Million
09-Feb-2017 1½% Treasury Gilt 2047 £2,624.2900 Million
07-Feb-2017 1¾% Treasury Gilt 2019 £3,004.2150 Million

When you add the cash raised:-

∑(£2,299.9970 Million + £1,250.0000 Million + £2,624.2900 Million + £3,004.2150 Million£9,178.50 Million

£9,178.50 Million  = £9.17850 Billion

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

£327 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 2019, 2026 and 2047. All long term borrowings, we are mortgaging our futures, but at least “We are in it together…

The February Dividend from The City of London Investment Trust.

Yesterday, the City of London Investment Trust paid out its Feb 2017 Dividend

4.05p a share.

The yield is 3.9%

Now, the shares in issue are 336,484,868.


336,484,868 x 4.05p a share = £13,627,637.154

The dividend cost the trust, £13.6m in cash.