Monthly Archives: April 2017

The TwentyFour Select Monthly Income Fund: Monthly Dividend.

Yesterday (Friday 28th April), the TwentyFour Select Monthly Income Fund paid out it’s monthly dividend of 0.5p to shareholders.

Security   Sector    % of whole fund
NWIDE 10.25 PERP CCDS  Banks    2.93
COVBS 6.375 PERP  Banks    2.48
SANUK 10.375   Banks    2.34
AVOCA 11X F   ABS    2.25
JUBIL 2014-12X F  ABS    2.19
BRACKN 10.5 11/15/21  REGS High Yield – EU  1.98
ALDMRE 11.875 PERP  Banks    1.89
ARGID 6.625 09/15/23  REGS High Yield – EU  1.85
CS 7.5 PERP   REGS Banks   1.84
HPARK 1X E   ABS    1.82

With 154.6 million shares in circulation: 154,600,000

Thus 154,600,000 x £0.005 = £773,000 was the cost of the dividend.

A yield of 7%. You read that correct.

Berkshire Hathaway Largest Equity Investments in Listed Companies.

Berkshire Hathaway the investment company run by Charlie Munger and Warren Buffet holds these stocks in its investment portfolio.

151,610,700 shares in American Express Company = 16.8% of Company Owned
61,242,652 shares in Apple Inc. 1.1% of Company Owned
6,789,054 shares in Charter Communications, Inc. 2.5% of Company Owned
400,000,000 shares in The Coca-Cola Company 9.3% of Company Owned
54,934,718 shares in Delta Airlines Inc. 7.5% of Company Owned
11,390,582 shares in The Goldman Sachs Group, Inc.  2.9% of Company Owned
81,232,303 shares in International Business Machines Corp. 8.5% of Company Owned
24,669,778 shares in Moody’s Corporation  12.9% of Company Owned
74,587,892 shares in Phillips 66 14.4% of Company Owned
22,169,930 shares in Sanofi  1.7% of Company Owned
43,203,775 shares in Southwest Airlines Co.  7.0% of Company Owned
101,859,335 shares in U.S. Bancorp  6.0% of Company Owned
26,620,184 shares in United Continental Holdings Inc. 8.4% of Company Owned
43,387,980 shares in USG Corp. 29.7% of Company Owned

The Debt of Astra Zeneca.

Astra Zeneca PLC is one of the world’s largest Pharmaceutical companies.

It has a debt funding programme to help finance its operations

15 sets of listed bonds that trade on the debt market.
Fx    Amount(m)  Issue   Maturity Coupon
USD  1,750   12-Sept-07  15-Sept-17 5.90%
USD  1,000    16-Nov-15  16-Nov-18 1.75%
USD  400   16-Nov-15  16-Nov-18 3m Libor + 0.53%
USD  1,000    18-Sep-12  18-Sep-19 1.95%
USD  1,600    16-Nov-15  16-Nov-20 2.375%
EUR  500    12-May-16  12-May-21 0.25%
EUR  750    24-Nov-14  24-Nov-21 0.875%
USD  288    15-Nov-93  15-Nov-23 7.00%
EUR  900    12-May-16  12-May-24 0.75%
USD  2,000    16-Nov-15  16-Nov-25 3.375%
EUR  800    12-May-16  12-May-28 1.25%
GBP  350    13-Nov-07  13-Nov-31 5.75%
USD  2,750    12-Sep-07  15-Sep-37 6.45%
USD  1,000    18-Sep-12  18-Sep-42 4.00%
USD  1,000   16-Nov-15  16-Nov-45 4.375%

In total = $6,101 Million =  £7,546 Million of debt.

UK National Debt Keeps Rising.

The UK Government is spending more (National Government Expenditure) than it gets in income (Taxes, Duties, Asset Sales).

This document makes somber reading.

2018-19 needs £123.0 Billion of Borrowing
2019-20 needs £130.9Billion of Borrowing
2020-21 needs £136.3 Billion of Borrowing
2021-22 needs £116.4 Billion of Borrowing

Thus national debt increases by £505 Billion in the next 4 years.

Glencore vs FTSE100

Glencore is the FTSE-100 listed miner and commodities trader.
The performance of its shares in the past 12months is amazing.

Shares have climbed from just over 100p to over 320p
That is over 300% gain in 12months,

Compare it against the FTSE100.

from 5800 points to just over 7300.
That is a gain over just over 25%


The GlaxoSmithKline April 2017 Dividend.

Today, GSK (GlaxoSmithKline) pays out its dividend to its shareholders.

23p a share.

What will that cost ?

The total number of voting rights in the Company is 4,917,299,936


4,917,299,936 * £0.23 =  £1,130,978,985.28

That is £1.13 Billion

a yield of over 4%

The BT Final Salary Pension Pay

BT PLC is the worlds most dynamic telecommunications and media corporation in the world.

It has global operations had has a huge pension fund to pay the pensions of former employees.

The pensions portal for the pension fund is:-

Some very interesting statistics can be found here in its latest newsletter to members:-

Today in 2016 it has 201,261 actual pensioners claiming a pension from the £43,168 Million fund
Annually the pension money paid out is £2,359 Million to the 201,261 pensioners.

One can do some simple calculations now:-

the average pension then paid out is £2,359 Million / 201,261 pensioners

That is £11721.09 a year which is £976.75 a month.

Just an average figure of what is paid out.

The PM Visit to Saudi Arabia.

Highwire by The Rolling Stones

We sell ’em missiles, We sell ’em tanks
We give ’em credit, You can call up the bank
It’s just a business, You can pay us in crude
You’ll love these toys, just go play out your feuds
We got no pride, don’t know whose boots to lick
We act so greedy, makes me sick sick sick

So get up, stand up, out of my way
I wanna talk to the boss right away
Get up, stand up, who’s gonna pay
I wanna talk to the man right away

We walk the highwire
Sending men to the front line
And hoping they don’t catch the hell-fire
Of hot guns and cold, cold lies

We walk the highwire
Send the men to the front lines
And tell ’em to hotbed the sunshine
With hot guns and cold, cold lies

Our lives are threatened, our jobs at risk
Sometimes dictators need a slap on the wrist
Another Munich we just can’t afford
We’re gonna send in the 82nd Airborne

Get up, stand up, who’s gonna pay
I wanna talk to the boss right away
Get up, stand up, outta my way
I wanna talk to the man right away

We walk the highwire
Putting the world out on a dead lie
And hoping they don’t taste the shell-fire
Of hot guns and cold, cold lies

We walk the highwire
Putting the world out on a dead lie
Catching the fight on the primetime
With hot guns and cold, cold lies

Get up! Stand up!
Dealer! Stealer!

We walk the highwire
Sending men to the front line
And hoping that we backed the right side
With hot guns and cold, cold lies

We walk the highwire
Sending men to the front line
And hoping they don’t catch the hell-fire
With hot guns and cold, cold, cold, cold, cold lies

We walk the highwire
We walk the highwire
With hot guns and cold, cold, cold lies.

HM Government March 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 March 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” 5 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office ( to raise cash for HM Treasury:-

02-Mar-2017 0½% Treasury Gilt 2022 £2,500.0000 Million
09-Mar-2017 0 1/8% Index-linked Treasury Gilt 2036 £833.7370 Million
14-Mar-2017 1¼% Treasury Gilt 2027 £2,557.9170 Million
22-Mar-2017 1½% Treasury Gilt 2047 £2,299.9970 Million
28-Mar-2017 0½% Treasury Gilt 2022 £2,874.9990 Million

When you add the cash raised:-

∑(£2,500.0000 Million + £833.7370  Million + £2,557.9170 Million + £2,299.9970 Million + £2,874.9990 Million =  £11,066.65  Million

£11,066.65  Million = £11.06665 Billion

On another way of looking at it, is in the 31 days in March, HM Government borrowed:-

£356 million each day for the 31 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, 2027 and 2047. All long term borrowings, we are mortgaging our futures, but at least “We are in it together…


Dividends on Shares (punishing investors)

One of the most significant changes from the HM Government, 2017 Spring Budget is the reduction in the tax-free dividend allowance from £5,000 to £2,000. It affects investors who are shareholders with portfolios – of about more than £50,000, and what this means more people may have to pay more tax on their dividend income on the shares they own.

The change is effective from April 2018, meaning investors have just over a year to organise their dividend income to shield it as much as possible from increased tax charges. Potential options to consider.

(1). Using the tax-free dividend allowance

Investors will continue to have a £2,000 tax-free dividend allowance, which means they will be able to hold about £50,000 in stocks. Today, the FTSE-100 Index is yielding 3.8% (a rough approximation on dividend yield) before having to pay any tax on dividend income. Investors could decide on moving their highest-yielding stocks (BP, Vodafone, Shell etc etc ) into ISAs or Pensions, while keeping the lower-yielding stocks (growth stocks) outside the ISA wrapper.

(2). Using ISA’s

Investors could use ISA’s to shield their dividend income as they offer tax-free income and growth. By acting before the end of this tax year, investors can shield up to £55,240 in a stocks and shares Isa by the time the new allowance comes into force:

* £15,240 in 2016/17

* £20,000 in 2017/18

* £20,000 on first day of the tax year, 6 April 2018.

By using both of a couple’s allowances, this could mean investing up to £110,480 over three years.

If investors sell existing share holdings and reinvest the proceeds in an ISA using the ‘bed and ISA’ rules, this may give rise to a capital gains tax charge, although it could be partially or fully covered by the individual’s £11,100 (2016/17) capital gains tax exemption. Investors need to be aware that ISA’s, unlike direct share holdings, cannot be placed into trust for inheritance tax (IHT) planning. Instead, when the investor dies, the ISA will remain within the estate for the purposes of IHT. This is in sharp contrast with pension investments, which are usually deemed to be outside the estate.

(3). Switching investment objectives

For any shareholdings that cannot be shielded in ISA, investors could consider switching their investment profile – moving from an emphasis on generating income to one centred on capital appreciation. If investors decide to reduce their income-generating investments, they could also choose to regularly sell investments or gains to supplement their reduced dividend income.

While these actions may be helpful in reducing dividend income tax liability, they may store up future capital gains tax charges unless planning is undertaken to counter this.

Concluding comments from

The tax rules for shareholders have been changing fast. The tax-free dividend allowance was only introduced a year ago, and now it is being more than halved.

These quick-fire changes send out a confused message to those trying to save for their futures, and makes it difficult to set a long-term plan. But it also flags up the need for shareholders to work with their advisers to make sure their investment portfolio is tax-efficient. Tax is not the only consideration when setting the right portfolio, but it is an important one.