Monthly Archives: July 2017

The State Oil Fund of the Republic of Azerbaijan

The State Oil Fund of the Republic of Azerbaijan is the Sovereign Wealth Fund of Azerbaijan.

SOFAZ is the name.

It is all stems from 1995, when a consortium was organized, known as the Azerbaijan International Operating Company (AIOC). Originally AIOC was composed of eleven major international companies: BP (UK), Amoco (U.S.), LUKoil (Russia), Pennzoil, (now Devon of U.S.), UNOCAL (U.S.), Statoil (Norway), McDermott (U.S.), Ramco (Scotland), TPAO (Turkey), Delta Nimir (now Amerada Hess of U.S.), and SOCAR (Azerbaijan).

Since then Exxon, now ExxonMobil (U.S.); ITOCHU (Japan); and INPEX (Japan) have joined the consortium and McDermott, Ramco and LUKoil have sold their shares.

It is this massive investment that has created investment revenues for the State Oil Fund of the Republic of Azerbaijan to invest its profits.

SOFAZ’s currency assets in the beginning of 2017 $33, 147 Million = $33 Billion

78.9% Fixed income and money market instruments
12.9% Equities
4.6% Real Estate
3.6% Gold.

It owns 78 St James Street, in London.

Guess who is the tenant ?

HSBC. A tenant that will pay the rent on time.

The Assets of The Edinburgh Investment Trust plc

The Edinburgh Investment Trust plc is a London Listed FTSE-250 Investmen Company, managed by Invesco Perpertual.

It’s top 10 holdings are:
Reynolds 6.6%
British American Tobacco 5.5%
BP 4.4%
AstraZeneca 3.7%
Imperial Brands 3.7%
Provident Financial 3.6%
BAE Systems 3.6%
Altria – US common stock 3.6%
Legal & General 3.2%
Roche – Swiss common stock 3.1%

41.0% of the top 10 holdings

Portfolio breakdown % portfolio
FTSE 100 50.5%
FTSE 250 ex Inv Companies 23.4%
International Equities 15.2%
FTSE Small Cap Fledgling AIM ex Inv Companies 6.0%
Other Split Cap & Inv Companies 4.4%
Cash & Cash Equivalent 0.5%
Total 100.0%

A yield of 3.4%

Custodian REIT plc

The Custodian REIT plc is a UK London Listed Property Investment Company.

The Company’s investment objective is to provide Shareholders with an attractive level of income together with the potential for capital growth from investing in a diversified portfolio of commercial real estate properties in the UK.

130 property assets with a nationwide portfolio.
Portfolio value of £383.5m
Properties split across various real estate usage:

44% Industrial
16% Retail
15% Office
11% Retail Warehouse
14% Other: (Hotel, Restaurant, Trade Counter, Nursery, Motor Trade)

A yield of over 5%

The 3i July Dividend.

Today 3i (Investors in Industry) paid out its dividend to its shareholders.

18.5p per share.

What is the cost of this dividend to 3i PLC ?

3i Group plc has 972,826,882 issued ordinary shares, thus:-

972,826,882 x £0.185 = £179,972,973.17

That is £179 Million.

2.9% yield.

5.5% Return on your cash: Assetz Capital “The Property Secured Investment Account”

The peer to peer lender AssetzCapital have launched The Property Secured Investment Account

The Property Secured Investment Account is a way to invest exclusively in property backed loans designed to help you spread your risk across a broad range of autodiversified loans.

Here is how it works:-

A yield of 5.5% backed by a provision fund. Delicious.

The Marks and Spencer PLC July Dividend.

Yesterday, Marks and Spencer the UK flagship high street retailer paid out its July Dividend.

11.9p per share.

What is the cost of this dividend to Marks and Spencer PLC ?

The Company’s capital consists of 1,624,731,648 ordinary shares with voting rights.


1,624,731,648  x £0.119 = £193,343,066.11

That is £193 Million.

2.4% yield.

GlaxoSmithKline July 2017 Dividend

Today, the UK’s largest Pharma company, GlaxoSmithKline paid out is July dividend.

19p per share.

What did this cost GlaxoSmithKline ?

The total number of voting rights in the Company is 4,918,418,059, thus:-

4,918,418,059, x £0.19 = £934,499,431.21

That is £934 million.

That is a 5% yield.

HSBC Quarterly Dividend: July 2017.

On the 5th July, The Hong Kong and Shanghai Banking Corporation paid out its quarterly dividend.

It is 7.8636 pence per share.

The total number of voting rights in HSBC Holdings plc is 20,050,550,509.


20,050,550,509 x £0.078636 = £1,576,695,089.83

That is £1,576 Million = £1.576 Billion.

5.5% yield. Delicious

HM Government Borrowing: June 2017

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 June 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:-
27-Jun-2017 0 1/8% Index-linked Treasury Gilt 2026 £1,000.0000 Million
22-Jun-2017 1½% Treasury Gilt 2047 £2,587.4980 Million
06-Jun-2017 0½% Treasury Gilt 2022 £2,874.9990 Million
01-Jun-2017 1¼% Treasury Gilt 2027 £2,500.0000 Million

When you add the cash raised:-

∑(£1,000.0000 Million + £2,587.4980 Million + £2,874.9990 Million + £2,500.0000 Million) =  £8962.497 Million

£8962.497 Million  = £8.962497  Billion

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

£298 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, 2027 and 2037. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….

The Scottish Mortgage Investment Trust: July 2017 Dividend

On Monday 3rd July, The Scottish Mortgage Investment Trust paid out its dividend.

1.16p a share.

How much will this dividend cost ?

The total number of voting rights in Scottish Mortgage Investment Trust PLC is 1,367,519,485.


1,367,519,485 x £0.0161 = £22,017,063.71

That is £22m.

Federal Reserve Balance Sheet

The USA’s Central Bank is the Federal Reserve.

Run by the New Yorker, Janet Yellan

The Growth in the Federal Reserve’s balance sheet since 2007 when the Global Financial Crisis began is best documented here:-

Total assets today are at over $4,470 Billion (That is $4.470 TRILLION).

Looking at that graph:

10th Sept 2007: Assets = $886,314 MILLION
22nd May 2017: Assets = $4,470,852 MILLION

One can see the US Fed buying the bad assets of the troubled banks = TARP The Troubled Asset Relief Programme.

Invesco Perpetual UK Smaller Companies Investment Trust

The Invesco Perpetual UK Smaller Companies Investment Trust is a London Listed Invesment Company

A £640m fund.

Top 10 holdings:-

CVS 2.89%
FDM 2.49%
JD Sports Fashion 2.34%
Keywords 2.26%
JSG 2.21%
Dechra Pharmaceuticals 2.16%
Sanne 2.11%
Coats 2.09%
BooHoo 1.98%
Clinigen 1.93%
Total top 10 holdings make up 22.46 % of the total holdings.

The total number of holdings are 83.

A yield of over 3%