Monthly Archives: January 2018

UK Mortgages Jan 2018 Dividend.

UK Mortgages PLC pays out today its Jan 2018 (Quarterly) dividend of 1.5p a share.

250m shars in issue


250,000,000 x £0.015 = £3,750,000

£3.75m paid today to shareholders.

6% yield.

Pharma and Biotech Investment

This is a great sector:-

The news of Biotech and Pharma jobs can only a good thing, the UK is a world leader with names like Astra Zeneca, GlaxoSmithKline.

One can see huge investment opportunities here.
Look at this fund:-

The Legal and General Heath and Pharmaceuticals Index Tracker.

The growth in amazing.


The investments:-

Johnson & Johnson Pharmaceuticals & Biotechnology 7.73% of the fund
Pfizer Pharmaceuticals & Biotechnology 4.65%% of the fund
Novartis AG Pharmaceuticals & Biotechnology 4.45%% of the fund
UnitedHealth Group Health Care Equipment & Services 4.14%% of the fund
Roche Holding AG Part. Cert. Pharmaceuticals & Biotechnology 3.98%% of the fund
Merck & Co. Pharmaceuticals & Biotechnology 3.86%% of the fund
AbbVie Inc Pharmaceuticals & Biotechnology 3.13%% of the fund
Amgen Pharmaceuticals & Biotechnology 3.02%% of the fund
Celgene Corp. Pharmaceuticals & Biotechnology 2.49%% of the fund
Sanofi Pharmaceuticals & Biotechnology 2.38%% of the fund

Top ten investments make up 39.83% of the fund.

The Value of The UK plc

The UK’s worth grew by the largest amount on record to reach £9.8tn at the end of last year, boosted by land value, which has grown “more than fivefold” since 1995, according to the office of national statistics.

Combining the UK’s total assets, the Office for National Statistics (ONS) found that the UK’s value increased by 8.9pc or £803bn between 2015 and 2016. The country’s net worth has risen steadily since 2012, following a course in line with pre-financial crisis conditions. Land was found to be the UK’s single most valuable asset, making up more than half of the UK’s total net worth, according to the annual ONS report, an estimate of the market value of UK assets is known as the national balance sheet.

Non-financial assets increased by £477bn in 2016, with £280bn of that growth coming from rising land value. Land is worth £5.0tn, equivalent to 51pc of the total value of the UK.

However, the growth of land value slowed last year to a 5.9pc increase, compared with rises of 15pc in 2014 and 10pc in 2015.

The ONS noted that land values remain highly dependent on house prices. In 2008 land lost 23pc of its value, some 23pc, as the housing market tumbled. For several years ahead of the crash, land as an asset grew by 18.3pc in value.

The Government was the least valuable sector in the UK, with a value of negative £845bn. This was driven by central government’s massive debt. It was £1.2tn in the red, contrasting with local government which was £356bn in the black.

Since 1995 the value of land has increased more than fivefold, making it our most valuable asset. At £5tn, it accounts for just over half of the total net worth of the UK at end-2016.

HM Government Borrowings: December 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 December 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” 3 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office ( to raise cash for HM Treasury:-

13-Dec-2017 0 1/8% Index-linked Treasury Gilt 2036 3 months £800.0000 Million
07-Dec-2017 1½% Treasury Gilt 2047 £2,276.5000 Million
05-Dec-2017 0¾% Treasury Gilt 2023 £2,750.0000 Million

When you add the cash raised:-

∑(£800.0000 Million + £2,276.5000 Million + £2,750.0000 Million) =  £5826.5 Million

£5826.5 Million  = £5.8265 Billion

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

£187 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 2023, 2036 and 2047. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….

The Dangers of Cash

Cash is king. Cash is liquidity, but actually it can be a very value eroding investment, as inflation (rising prices) can devalue and erode the purchasing power of cash

A real example of the risk of holding cash in an pension fund is here:-

The Standard Life L&G Cash Pension Fund

The table below shows the fall in value of the fund. Grim reading.


The Aberdeen New India Investment Trust PLC

The Aberdeen New India Investment Trust PLC is a London listed £270 Million investment trust.

The objective, to achieve long-term capital appreciation by investing in companies which are incorporated in India or which derive significant revenue or profit from India, with dividend yield from the company being of secondary importance.

Housing Development Finance Corp 9.7% of the fund
Infosys Ltd. 6.9% of the fund
Tata Consultancy Services 6.6% of the fund
Piramal Healthcare Ltd. 5.3% of the fund
ITC, Ltd. 5.2% of the fund
Kotak Mahindra Bank 4.6% of the fund
Grasim Industries Ltd 4.0% of the fund
Hindustan Unilever Ltd. 3.9% of the fund
Godrej Consumer Products 3.6% of the fund
Kansai Nerolac Paints Ltd. 3.5% of the fund

Total 53.1%

Interesting fact:-

Price: 455.50
Net Asset Value: 513.57

Premium/-Discount: -11.31

thus you are buying assets of £5.13 for the price of £4.55

The FTSE Small Cap Index.

The FTSE Small Cap Index is this:

And these are the companies:-

AAIF Aberdeen Asian Income Fund
AAS Aberdeen Asian Smaller Companies Investment Trust
ABD Aberdeen New Dawn Investment Trust
ADIG Aberdeen Diversified Income And Growth Trust
AEFS Alcentra European Floating Rate Income Fund Red
AEP Anglo-Eastern Plantations
ALM Allied Minds
ANII Aberdeen New India Investment Trust Ord 25p
AO. AO World
APAX Apax Global Alpha
ARW Arrow Global Group
ASIT Aberforth Split Level Income Trust Ord 1p
ATR Asian Total Return Investment Company
ATS Artemis Alpha Trust
ATT Allianz Technology Trust Ord 25p
AVON Avon Rubber
BBH Bb Healthcare Trust Red Ord 1p
BEE Baring Emerging Europe
BGFD Baillie Gifford Japan Trust (the)
BGS Baillie Gifford Shin Nippon
BHGG BH Global Limited GBP
BHMG BH Macro Limited GBP
BIFF Biffa
BIOG Biotech Gwth
BMY Bloomsbury Publishing
BOOT Boot Henry **see BHY**
BOWL Hollywood Bowl Group
BRFI Blackrock Frontiers Investment Trust
BRGE Blackrock Greater Europe Inv Trust
BRLA BlackRock Latin Am
BRNA BlackRock North Amer
BRSC BlackRock Smaller Companies Trust
BRWM Blackrock World Mining Trust
BSIF Bluefield Solar Income Fund
BUT Brunner Investment Trust (the)
CAL Capital & Regional
CAR Carclo
CARR Carrs Group
CGT Capital Gearing Trust
CHG Chemring Group
CIR Circassia Pharmaceuticals
CLG Clipper Logistics
CLIG City of London Investment Group
CLLN Carillion
CMBN Cambian Group
CMCX CMC Markets
CMHY City Merchants High Yield Trust
CMS Communisis
CNCT Connect Group
COST Costain Group
CPR Carpetright
CREI Custodian Reit
CSH W Resources (formerly Caspian Holdings )
CSN Chesnara
CSRT Consort Medical
CTR Charles Taylor
CWD Countrywide
DEB Debenhams
DFS DFS Furniture
DIA Dialight
DIG Dunedin Income Growth Investment Trust
DIGS GCP Student Living
DIVI Diverse Income Trust (The)
DLAR De La Rue
DNDL Dunedin Smaller Companies Investment Trust
DPEU Dp Eurasia N.v. Ord Eur0.12 Di Wi
DSCV Discoverie Group Ord 5p
DVO Devro
EFM Edinburgh Dragon Trust
EGL Ecofin Global Utilities & Infrastructure Trust
EIG EI Group
ENQ EnQuest
EPG EP Global Opportunities Trust
EPIC Ediston Property Investment Company
ESP Empiric Student Property
EUT European Investment Trust
EWI Edinburgh Worldwide Investment Trust
FAN Volution Group
FAS Fidelity Asian Values
FCI F&C Capital & Income Investment Trust
FCIF Funding Circle SME Income Fund
FCRE F&C UK Real Estate Investments
FCS F&C Global Smaller Companies
FDL Findel
FEET Fundsmith Emerging Equities Trust Ord 1p
FENR Fenner
FJV Fidelity Japanese Values
FORT Forterra
FOUR 4imprint Group
FOXT Foxtons Group
FPEO F&C Private Equity Trust
FSFL Foresight Solar Fund
FSTA Fuller Smith & Turner
FSV Fidelity Special Values
GABI GCP Asset Backed Inc Fund
GAW Games Workshop Group
GDWN Goodwin
GEMD Gem Diamonds
GHG Georgia Healthcare Group
GLE Gleeson (M J) Group
GMS Gulf Marine Services
GOCO Group
GYM The Gym Group
HAN Hansa Trust
HAST Henderson Alternative Strategies Trust
HDIV Henderson Diversified Income
HEAD Headlam Group
HEFT Henderson European Focus Trust
HFEL Henderson Far East Income
HFG Hilton Food Group
HGT HG Capital Trust
HHI Henderson High Income Trust
HINT Henderson International Income Trust
HLCL Helical Bar
HMSF Highbridge Multi-strategy Fund Limited Ord Npv Gbp
HNE Henderson Eurotrust
HNT Huntsworth
HRG Hogg Robinson Group
HSD Hansard Global
HSL Henderson Smaller Companies Investment Trust
HSS HSS Hire Grp
HSW Hostelworld Group
IAT Invesco Asia Trust
IBT International Biotechnology Trust
ICGT ICG Enterprise Trust
IEM Impax Environmental Markets
IIT Independent Investment Trust
IPF International Personal Finance
IPU Invesco Perpetual Uk Smaller Companies Trust
IRV Interserve
IVI Invesco Income Growth Trust
JAI JPMorgan Asian Investment Trust
JCH JPMorgan Claverhouse Investment Trust
JEMI JPMorgan Gbl Emerging Mkts Inc Tst
JESC JPMorgan European Smaller Companies Trust
JETG JPMorgan European Investment Trust Growth
JETI JPMorgan European Investment Trust Income
JFJ JPMorgan Japanese Investment Trust
JLEN John Laing Environmental Assets Group
JMC JPMorgan Chinese Investment Trust
JMF JPMorgan Mid Cap Investment Trust
JMI JPMorgan Smaller Companies Investment Trust
JPGI JPMorgan Global Growth Income
JPS JPMorgan Japanese Smaller Companies Investment Trust
JRS JPMorgan Russian Securities
JUS Jupiter US Smaller Companies
JUSC JPMorgan US Smaller Companies IT
KIT Keystone Investment Trust
KLR Keller Group
KMR Kenmare Resources
KNOS Kainos Group
LAM Lamprell
LBOW LCG-Longbow Inv
LIO Liontrust Asset Management
LMI Lonmin
LOOK Lookers
LRD Laird
LSL LSL Property Services
LTI Lindsell Train Investment Trust (the)
LUCE Luceco
LWB Low & Bonar
LWDB Law Debenture Corporation (the)
LWI Lowland Investment Company
LXI Lxi Reit Ord 1p
MAJE Majedie Investments
MCB McBride
MCKS McKay Securities
MCLS Mccoll’s Retail Group
MCP Martin Currie Pacific Trust
MCT Middlefield Canadian INC PCC
MER Mears Group
MGNS Morgan Sindall
MGP Medica Group
MNP Martin Currie Global Portfolio Inv.Trust
MNZS Menzies (John)
MOSB Moss Bros Group
MOTR Motorpoint Group
MPO Macau Property Opportunities Fund
MRCH Merchants Trust (the)
MTC Mothercare
MTE Montanaro European Smaller Co’s Trust
MTU Montanaro Uk Smaller Companies Investment Trust
MUT Murray Income Trust
MXF MedicX Fund
NAIT North American Income Trust (The)
NANO Nanoco Group
NAS North Atlantic Smaller Companies Investment Trust
NCYF CQS New City High Yield Fund
NESF Nextenergy Solar Fund
NTG Northgate
NXR Norcros
OPHR Ophir Energy
OTB On The Beach Group
OXB Oxford BioMedica
OXIG Oxford Instruments
PAC Pacific Assets Trust
PCFT Polar Capital Global Financials Trust
PCGH Polar Capital Global Healthcare Grwth & Inc Tr
PCTN Picton Property Income
PDG Pendragon
PDL Petra Diamonds
PFD Premier Foods
PHI Pacific Horizon Investment Trust
PHP Primary Health Properties
PHTM Photo-Me International
PIN Pantheon International
PMO Premier Oil
POG Petropavlovsk
PRTC PureTech Health
PRV Porvair
PSDL Phoenix Spree Deutschland
PURE PureCircle
RCDO Ricardo
RDL Ranger Direct Lending Fund
RECI Real Estate Credit Investments
RGL Regional Reit Limited
RICA Ruffer Investment Company Limited
RNO Renold
RUS Raven Russia
RWA Robert Walters
SCAM Scottish American Investment Company
SCF Schroder Income Growth Fund
SCP Schroder UK Mid & Small Cap Fund
SDP Schroder Asiapacific Fund
SDU Schroder Uk Growth Fund
SDY Speedy Hire
SEC Strategic Equity Cap.
SERE Schroder European Real Estate Investment Trust
SERV Servelec Group
SFR Severfield
SIA SOCO International
SJG Schroder Japan Growth Fund
SLET Standard Life Equity Income Trust
SLI Standard Life Investment Property Inc Trust
SLPE Standard Life Private Equity Trust Ord 0.2p
SLS Standard Life UK Smaller Companies Trust
SMIF Twentyfour Select Monthly Income Fund
SOI Schroder Orient
SPO Sportech
SPT Spirent Communications
SQN Sqn Asset Finance Income Fund
SQNX SQN Asset Finance Income Fund
SRE Sirius Real Estate
SREI Schroder Real Estate IT
SST Scottish Oriental Smaller Companies Trust (the)
STCK Stock Spirits Group
STS Securities Trust Of Scotland
SWEF Starwood European Real Est Fin
TET Treatt
TFIF Twentyfour Income Fund
THRG BlackRockThrogmorton Trust
THRL Target Healthcare Reit
TIGT Troy Income & Growth Trust
TNI Trinity Mirror
TOWN Town Centre Securities
TPT Topps Tiles
TRG TR European Growth Trust
TRI Trifast
TRS Tarsus
TTG TT Electronics
TYMN Tyman
UAI U and I Group
UEM Utilico Emerging Markets
UPGS UP Global Sourcing Holdings
VIN Value And Income Trust
VOF VinaCapital Vietnam Opp. Fund
VSL VPC Specialty Lending Investments
WIN Wincanton
WPC Witan Pacific Investment Trust
XAF Xafinity
XAR Xaar
XPP XP Power
ZTF Zotefoams

This Time It’s Different.

The four most dangerous words in investing: ‘this time it’s different.’

– Sir John Templeton

This is one of the most important quotes in investment history. Unfortunately, it’s often misunderstood. Of course, things are always different from one era to the next, but what does not change from era to era is human behaviour and the formation of market extremes.

In the past decade and a half we have had several great examples of investment sector extremes. Remember the gurus that explained the dot-com years by stating it was a new era and the old metrics of valuation did not apply? How about the housing boom? Recall the experts in late 2005 stressing why this time was different, and that the record shattering valuations weren’t a problem?

Identifying extremes is easy in retrospect, but for most investors it’s very difficult in the moment. That’s because the natural human tendency is to chase performance, and the brighter the glow, the more average investors clamour to buy.

Here are a few things to consider regarding equity sector extremes. Timespan is important, extremes take years to develop; a year, two, or even three is typically not enough. The thing to look for is outperformance above the broad market for more than three years. Sectors in a classic bubble formation have usually outperformed for more than four years.

Both the dot-com and housing sectors maintained outperformance for just over five years. For the average investor outperformance for three or four years is an almost irresistible buy, yet history clearly shows us that performance extremes do not last, and when they fail the damage to investors is usually substantial.