Monthly Archives: September 2018

The Astra Zeneca September Dividend

On Sept 10th, Astra Zeneca paid out its September dividend.

https://www.astrazeneca.com/

It is 68.4p a share.

The total number of voting rights in AstraZeneca PLC is 1,266,776,325.

https://www.astrazeneca.com/investor-relations/Stock-exchange-announcements/2018/transparency-directive-voting-rights-and-capital01082018.html

Thus:

1,266,776,325 x £0.684 = £866,475,006.30

That is £866 Million

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10009

3.8% yield.

The Miton MicroCap Trust PLC.

The Miton MicroCap Trust, in a London listed investment trust.

https://www.mitongroup.com/private/fund/miton-uk-microcap-trust-plc/

The company intends to invest primarily in the smallest companies, measured by their market capitalisation.

Top 20 Holdings (%)

1.Kape Technologies plc 4.5%
2.Yu Group plc 4.2%
3.Frontier IP Group plc 2.8%
4.Cerillion plc 2.6%
5.Zotefoams plc 2.5%
6.Nanoco Group plc 2.4%
7.Bilby plc 2.4%
8.Kromek Group plc 2.4%
9.Aquis Exchange plc 2.3%
10.Conygar Investment Co plc 1.9%
Eland Oil & Gas plc 1.8%
12.Mind Gym plc 1.7%
13.Science in Sport plc 1.6%
14.Simec Atlantis Energy Ltd 1.6%
15.Versarien plc 1.6%
16.Scientific Digital Imaging plc 1.6%
17.BATM Advanced Comms Ltd 1.5%
18.Amino Technologies 1.5%
19.CML Microsystems plc 1.5%
20.Seeing Machines Ltd 1.5%

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=41162280&record_search=1&search_phrase=mini

 

BP’s September 2018 Dividend

Today, Friday 21st Sept 2018, BP plc pays out its quarterly dividend.

www.bp.com

7.9296p a share.

The total number of voting rights in BP p.l.c. is 19,982,865,583

https://otp.investis.com/clients/uk/bp_plc/rns/regulatory-story.aspx?cid=233&newsid=1164468

thus:-

19,982,865,583 x £0.079296 = £1,584,561,309.27

That is £1,584 Million = £1.584 Billion

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10022&record_search=1&search_phrase=BP

5.6% yield

The Rio Tinto September Dividend.

Rio Tinto is the world’s 2nd largest mining company

www.riotinto.com

Tomorrow (20th Sept 2018) it pays out its September dividend of 96.82p a share.

The total number of voting rights in Rio Tinto plc is 1,310,179,764

https://otp.tools.investis.com/clients/uk/rio_tinto1/rns/regulatory-story.aspx?cid=507&newsid=1131729

Thus:-

1,310,179,764 x £0.9882 = £1,294,719,642.78

That is £1,294 Million = £1.294 Billion in the dividend to shareholders.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10071&record_search=1&search_phrase=rio

6.1% dividend yield.

Royal Dutch Shell: September Dividend 2018

Today, Monday 17th Sept, Royal Dutch Shell pays out its quarterly dividend.

https://www.shell.com/media/news-and-media-releases/2018/second-quarter-2018-euro-and-gbp-equivalent-dividend-payments.html

Dividends on A Shares will be paid, by default, in euro at the rate of €0.4048 per A Share. Holders of A Shares who have validly submitted pounds sterling currency elections by August 24, 2018 will be entitled to a dividend of 36.50p per A Share.

Dividends on B Shares will be paid, by default, in pounds sterling at the rate of 36.50p per B Share. Holders of B Shares who have validly submitted euro currency elections by August 24, 2018 will be entitled to a dividend of €0.4048 per B Share

It is going to pay : 36.50p per share (in Shell A and Shell B)

Royal Dutch Shell plc’s capital consists of 4,573,199,702 A shares and 3,745,486,731 B shares, each with equal voting rights

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/RDSA/13776498.html

Thus:-

36.50p x 4,573,199,702 A shares = £1,669,217,891.23

36.50p x 3,745,486,731 B shares = £1,367,102,656.82
£1,669,217,891.23 + £1,367,102,656.82 = £3,036,320,548.05

That is £3.036 Billion of cash.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=133655

Shell A a yield of 5.8%

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=133755

Shell B a yield of 5.7%

RIT Capital Partners PLC

RIT Capital plc

The RIT Capital Investment Trust, is a London Listed Fund

http://www.ritcap.com/

The family wealth of The Rothschild Family is managed by this fund.

http://www.ritcap.com/significant-shareholdings

Lord Rothschild 18,462,036 shares 11.88% holding in RIT
Hannah Rothschild 14,081,001 shares 9.06% holding in RIT
The Rothschild Foundation 14,081,001 shares  9.06% holding in RIT

It’s asset allocation:-

Quoted Equity – Long 38%
Absolute Return & Credit 22%
Quoted Equity – Hedge 19%
Private Investments – Funds 13%
Private Investments – Direct 9%
Real Assets 3%
Other Investments 2%
Net Liquidity / Borrowings / Other Assets -6%

Global 33%
North America 33%
Emerging Markets 19%
Japan 8%
Europe 8%
United Kingdom 6%
Other -1%

It’s strategy is to deliver long-term capital growth, while preserving shareholders’ capital, to invest in a widely diversified, international portfolio across a range of asset classes, both quoted and unquoted.
Investment Portfolio as at 30 June 2018, all figures in £m

Quoted Equity
Stocks:
CSX Corporation1 United States Industrials 102.8 3.5%
Trian Partners Co-Investment2 United States Consumer staples/Industrials 64.1 2.2%
Dropbox United States Information technology 45.3 1.5%
Automatic Data Processing1 United States Information technology 36.3 1.2%
Citigroup Swap United States Financials, 2.0% notional (0.5) (0.0%)
Reckitt Benckiser Swap United Kingdom Consumer staples, 2.0% notional (0.4) (0.0%)
Nestlé Swap Switzerland Consumer staples, 1.4% notional 0.0 0.0%
Unilever Swap Europe Consumer staples, 1.1% notional 0.5 0.0%
Alphabet Swap United States Information technology, 1.0% notional (0.4) (0.0%)
Mitsubishi UFJ Swap Japan Financials, 0.9% notional (0.2) (0.0%)
S&P Global Swap United States Financials, 0.6% notional (0.2) (0.0%)
Other Stocks – – 9.4 0.4%
Total Stocks 256.7 8.8%
Long-only Funds:
HCIF Offshore United States All-cap, biotechnology 156.5 5.4%
Morant Wright3 Japan Small/mid-cap, value bias 117.4 4.0%
BlackRock Emerging Markets Emerging Markets All-cap, value bias 81.2 2.8%
Lansdowne Developed Markets Strategic Global All-cap, diversified 63.7 2.2%
Tekne Long-only Fund United States All-cap, information technology 56.3 1.9%
Ward Ferry Asian Smaller Companies Asia Small/mid-cap, diversified 55.2 1.9%
Springs Opportunities China All-cap, diversified 54.2 1.9%
Lansdowne New Energy Global All-cap, energy 45.1 1.5%
Brown Advisory LATAM3,4 Latin America All-cap, diversified 44.6 1.5%
Emerging India Focus India All-cap, diversified 39.8 1.4%
Trian Partners United States Large-cap, diversified 31.1 1.1%
Strategic Equity Capital United Kingdom Small-cap, diversified 21.6 0.7%
Other Long-only Funds – – 43.9 1.4%
Total Long-only Funds: 810.6 27.7%
Hedge Funds:
BlackRock European Hedge Fund Europe All-cap, diversified 95.2 3.3%
Gaoling China All-cap, diversified 88.9 3.0%
Martin Currie Japan Japan All-cap, diversified 87.7 3.0%
Soroban Global All-cap, diversified 83.9 2.9%
Palestra Capital Global All-cap, diversified 79.4 2.7%
RIT Discovery5 Global All-cap, diversified 62.0 2.1%
ENA Opportunity6 Europe All-cap, diversified 46.7 1.6%
Other Hedge Funds – – 33.1 1.1%
Total Hedge Funds: 576.9 19.7%
Derivatives:
GS US Value Basket Swap United States Long, 1.9% notional (2.6) (0.1%)
Euro Stoxx 600 Basic Resources Swap Europe Long, 0.7% notional (0.2) (0.0%)
Euro Stoxx 600 Oil & Gas Swap Europe Long, 0.5% notional 0.2 0.0%
MSCI World £ Index Swap Global Short, 5.6% notional 0.3 0.0%
GS Custom Industrials Swap United States Short, 2.6% notional 3.1 0.2%
FTSE 100 Futures United Kingdom Short, 2.0% notional 0.4 0.0%
S&P 500 Futures United States Short, 1.5% notional 1.0 0.0%
GS Custom US Transport Swap United States Short, 0.9% notional (0.8) (0.0%)
GS Custom Technology Swap Global Short, 0.8% notional 2.6 0.1%
iShares NASDAQ Biotech ETF Swap United States Short, 0.8% notional 0.2 0.0%
Equity Options Various Premium 9.3 0.3%
Other Derivatives – – 2.8 0.1%
Total Derivatives: 16.3 0.6%
Total Quoted Equity 1,660.5 56.8%
Private Investments – Direct:
Acorn Global Consumer staples 102.9 3.5%
Coupang Asia Information technology 38.2 1.3%
Helios Towers Africa Telecommunication services 35.2 1.2%
CSL United Kingdom Information technology 25.8 0.9%
Infinity Data Systems United Kingdom Information technology 20.9 0.7%
Age of Learning United States Information technology 14.1 0.5%
Other Private Investments – Direct – – 27.9 1.0%
Total Private Investments – Direct 265.0 9.1%
Private Investments – Funds:
Thrive Capital Funds United States Venture Capital 67.9 2.3%
Gaoling – Unquoted China Private Equity 37.2 1.3%
BDT Capital Funds United States Private Equity 36.2 1.2%
3G Special Situations United States Private Equity 23.0 0.8%
Augmentum Fintech PLC United Kingdom Venture Capital 19.0 0.6%
ICQ Holdings 6 United States Private Equity 18.9 0.6%
Other Private Investments – Funds – – 183.6 6.4%
Total Private Investments – Funds 385.8 13.2%
Absolute Return & Credit:
Eisler Capital Fund Global Macro strategy 140.9 4.8%
Attestor Value Fund Global Distressed and special situations 109.3 3.7%
Elliott International Global Multi-strategy 95.9 3.3%
Farmstead Fund United States Distressed and special situations 52.4 1.8%
Emso Opportunity Strategies Fund Global Opportunistic credit 47.5 1.6%
Sand Grove Tactical Global Multi-strategy 46.6 1.6%
Palm Lane Credit Opportunities Fund Global Fixed income, relative value 42.3 1.4%
Oaktree Strategic Credit Global Opportunistic credit 37.5 1.3%
BTG Global Derivatives Opportunities Global Volatility strategy 34.1 1.2%
RIT US Value Partnership Global Multi-strategy 24.9 0.9%
Other Absolute Return & Credit – – 44.3 1.5%
Total Absolute Return & Credit 675.7 23.1%
Real Assets:
Spencer House United Kingdom Investment property 38.9 1.3%
Other St James’s Properties United Kingdom Investment property 24.7 0.8%
BlackRock World Gold Fund Global Gold and precious metal equities 17.5 0.6%
Gold Futures United States Long, 2.3% notional (3.0) (0.1%)
Corn Futures Swap United States Long, 0.6% notional (1.2) (0.0%)
Silver Futures United States Long, 0.5% notional (0.1) (0.0%)
Soybean Futures Swap United States Long, 0.5% notional (0.9) (0.0%)
Other Real Assets – – 12.0 0.4%
Total Real Assets 87.9 3.0%
Government Bonds & Rates:
US Treasury Inflation Protected Securities United States Maturing January 2028 52.5 1.8%
US Dollar Interest Rate Swaps7 United States Long, 13.8% notional (1.4) (0.0%)
Sterling Interest Rate Swap7 United Kingdom Long, 1.8% notional 0.1 0.0%
Interest Rate Options Various Premium 8.2 0.2%
Total Government Bonds & Rates 59.4 2.0%
Other Investments:
Currency Forward Contracts Global Various forward contracts (26.3) (0.9%)
Currency Options Various Premium 0.4 0.0%
Total Other Investments (25.9) (0.9%)
Total Investments 3,108.4 106.3%
Liquidity:
Liquidity – Cash at bank/margins 221.2 7.6%
Total Liquidity 221.2 7.6%
Borrowings:
Commonwealth Bank of Australia loan – Revolving credit facility (125.0) (4.3%)
National Australia Bank loan – Revolving credit facility (150.0) (5.1%)
RIT Senior Notes – Long-term notes (159.5) (5.5%)
Total Borrowings (434.5) (14.9%)
Other Assets/(Liabilities) – Various 29.9 1.0%

Total Net Asset Value £2,925.0m  100.0%

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10281&record_search=1&search_phrase=RIT

Lindsell Train Investment Trust: The Price of Protection

The Lindsell Train Investment Trust is a highly regarding investment trust.

https://www.lindselltrain.com/funds/lindsell-train-investment-trust-plc/investment-objective-and-approach.aspx

This objective is simple: To maximise long-term total returns subject to the avoidance of loss of absolute value and with a minimum objective to maintain the real purchasing power of Sterling capital

Top 10 Holdings (% NAV)
Lindsell Train Limited (unlisted) 43.0%
Diageo 7.1%
London Stock Exchange 6.5%
Nintendo 6.2%
Unilever 5.5%
AG Barr 5.2%
PayPal 3.8%
LT Japanese Equity Fund 3.6%
Heineken Holdings 3.3%
RELX 3.2%

These are the salient facts:-

Market Capitalisation of £228m
Share Price: £1,140
Net Asset Value: £827.83
Premium (Discount): 37.7%

yes, you read that correct, a price of £1140 for assets of £827 in value.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=31089&action=

The Utilico Emerging Markets Trust

The Utilico Emerging Markets Trust is a London listed investment trust, worth just under £500m.

https://www.uemtrust.co.uk/

Top 20 Holdings are:-

1 Ocean Wilsons Holdings Limited (Brazil) Ports operator and provider of shipping services 4.5% of the fund
2 International Container Terminal Services Inc (Philippines) Ports operator and provider of shipping services 4.1% of the fund
3 China Resources Gas Group Ltd (Hong Kong) Gas distributor 3.7% of the fund
4 Yuexiu Transport Infrastructure Limited (China) Toll roads operator 3.2% of the fund
5 Cia de Gas de Sao Paulo (Brazil) Gas distributor 2.9% of the fund
6 Alupar Investimento S.A. (Brazil) Electricity generation and transmission 2.9% of the fund
7 Transgaz S.A. (Romania) Gas transmission 2.8% of the fund
8 Energisa S.A. (Brazil) Electricity distribution 2.6% of the fund
9 Transelectrica SA (Romania) Electricity transmission 2.6% of the fund
10 Rumo S.A. (Brazil) Rail-based logistics operator 2.5% of the fund
11 Malaysia Airports Holdings Berhad (Malaysia) Airport operator 2.5% of the fund
12 Transportadora de Gas del Sur S.A. (Argentina) Gas distributor 2.3% of the fund
13 Shanghai International Airport Co Ltd (China) Airport operator 2.3% of the fund
14 Engie Energia Chile S.A. (Chile) Electricity generation and transmission 2.2% of the fund
15 Conpet S.A. (Romania) Crude oil distributor 2.2% of the fund
16 APT Satellite Holdings Ltd (Hong Kong) Satellite operator 2.0% of the fund
17 Bolsas Y Mercados Argentinos (Argentina) Stock Exchange 2.0% of the fund
18 China Everbright Greentech Limited (China) Biomass integrated utilisation and waste treatment 1.8% of the fund
19 Enel Americas S.A. (Brazil) Electricity generation and transmission 1.7% of the fund
20 Power Grid Corporation of India Limited (India) Electricity transmission 1.7% of the fund

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=133441&action=

3.4% yield.

HM Government Borrowings: August 2018

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 August 2018 , 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” 2 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-

08-Aug-2018 1 5/8% Treasury Gilt 2028 £2,500 Million
21-Aug-2018 0 1/8% Index-linked Treasury Gilt 2028 3 months £1,100 Million

When you add the cash raised:-

(£2,500 Million + 1,100 Million) =  £3,600 Million

£3,600 Million = £3.6 Billion

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

£116 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 2028. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”

The Unilever September Dividend.

Today, Wed 5th September, Unilever plc pays out its dividend, of 34.35p a share

https://www.unilever.com/

Unilever PLC’s issued share capital as at 31 July 2018 consisted of 1,199,662,738 ordinary shares of 3 1/9p each, of which 2,271,957 were held as treasury shares; leaving a balance of 1,197,390,781 shares with voting rights.

https://otp.tools.investis.com/clients/uk/unilever/rns1/regulatory-story.aspx?cid=129&newsid=1131531

Thus:-

1,197,390,781 x 34.35p = £411,303,733.27

That is £411million.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10094

3.2% yield.

BT’s September Dividend.

Today, Monday 3rd September, BT plc the world’s premier telecommunications and media corporation pays out its dividend.

www.bt.com

10.55p a share.

The total number of voting rights in BT Group plc is 9,921,902,900:-

https://otp.tools.investis.com/clients/uk/bt/rns/regulatory-story.aspx?cid=1470&newsid=1132213

Thus, the cost of the dividend is:-

9,921,902,900 x £0.1055 = £1,046,760,755.95
That is £1,046 Million pounds = £1.046 Billion of cash

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10025&action=

6.8% yield.

Clever Quote: Warren Buffet

Make Long-Term Investments Over Short Term Ones

If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.”

Investing is not trading and has a vastly different goal, as trading, when done well, is about taking measured risks for discrete periods of time at sufficient volume as to generate profits, and typically involves wild swings in profitability. Investing is about minimizing risk to generate wealth over the long term, not generating short-term profits. Another great Buffett quote in this vein: “The stock market is designed to transfer money from the active to the patient.”