Monthly Archives: May 2019

CQS New City High Yield Fund

The CQS New City High Yield Fund is a London listed investment trust.

https://ncim.co.uk/cqs-new-city-high-yield-fund-ltd-factsheet-archive/

The objective of the CQS New City High Yield Fund is to To provide investors with a high dividend yield and the potential for capital growth by investing mainly in high yielding fixed interest securities

Top 10 Holdings (%) are:-

Punch Taverns 7.75% 30/12/2025 3.74% of the fund

Perform Group Financing 8.5% 15/11/2020 3.68 % of the fund

CYBG 8% Variable Perpetual 3.38% of the fund

Shawbrook Group 7.875% Variable Perpetual 3.19% of the fund

Galaxy Finco Ltd 7.875% 15/11/2021 2.95% of the fund

Rea Finance 8.75% 31/08/2020 2.63% of the fund

Matalan Finance 9.5% 31/01/2024 2.35% of the fund

Barclays Bank 7% Variable Perpetual 2.34% of the fund

Onesavings Bank Plc 9.125% Variable Perpertual 2.32% of the fund

Wittur Intl 8.5% 15/02/2023 2.29 % of the fund

https://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=217829&action=

7.4% yield

The Standard Life Aberdeen May 2019 Dividend.

On Tue 21st May, Standard Life Aberdeen PLC paid out its May 2019 dividend.

https://www.standardlifeaberdeen.com/

It was 14.3p a share.

The total number of voting rights in the Company as at 29 March 2019 is 2,473,736,726.

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/SLA/14023789.html

Thus:- 2,473,736,726 x £0.143 = £353,744,351.818

That is £353m of cash.

https://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=186960

8.3% yield.

The Murray International Trust.

The Murray International Trust is a London Listed FTSE-250 Investment Trust.

http://www.murray-intl.co.uk/itmurrayinternational/

Its remit is investing predominantly in equities worldwide, managed by Standard Life Aberdeen Twenty largest equity holdings (%)

Taiwan Semiconductor 4.4% of the fund

Grupo Aeroportuario 4.1% of the fund

Taiwan Mobile 3.3% of the fund

Sociedad Quimica Y Minera De Chile 3.1% of the fund

British American TobaccoC 3.1% of the fund

Philip Morris 2.9% of the fund

Unilever Indonesia 2.8% of the fund

Verizon Communications 2.7% of the fund

Daito 2.6% of the fund

Total 2.6% of the fund

Roche 2.5% of the fund

CME 2.3% of the fund

Banco Bradesco 2.3% of the fund

Royal Dutch Shell ‘B’ 2.0% of the fund

SingTel 1.9% of the fund

Public Bank 1.8% of the fund

Intel 1.7% of the fund

TELUS 1.7% of the fund

Vale 1.6% of the fund

Kimberly-Clark de Mexico 1.6% of the fund

Total 51.0% of the fund

Ten largest fixed income holdings (%)

Vale Overseas Limited 6.875% 21/11/36 1.2% of the fund

South Africa (Rep of) 7% 28/02/31 1.1% of the fund

Indonesia (Rep of) 6.125% 15/05/28 0.9% of the fund

Petroleos Mexicanos 6.75% 21/09/47 0.8% of the fund

Indonesia (Rep of) 7% 15/05/22 0.8% of the fund

Mexico (United Mexican States) 5.75% 05/03/26 0.8% of the fund

Uruguay (Rep of) 5.1% 18/06/50 0.8% of the fund

Brazil (Fed Rep of) 10% 01/01/23 0.7% of the fund

Dominican (Rep of) 6.85% 27/01/45 0.7% of the fund

Alfa 6.875% 25/03/44 0.7% of the fund

Total 8.5% of the fund

https://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10252

4.5% yield.

Lloyds Banking Group May 2019 Dividend

On Tuesday 21st May, Lloyds Banking Group, paid out is May 2019 dividend

www.lloydsbankinggroop.com

2.14p a share

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/LLOY/14057769.html

The total number of shares issued by Lloyds Banking Group plc with rights to vote which are exercisable in all circumstances at general meetings is 70,864,314,036 ordinary shares

Thus:- 70,864,314,036 x £0.0214 = £1,516,496,320.3704

That is £1516 Million = £1.516 Billion

https://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10056&action=

5.4% yield

Fundsmith Emerging Equities Trust

The Fundsmith Emerging Equities Trust is a London listed investment trust.

https://www.feetplc.co.uk/

Terry Smith – CEO & CIO Fundsmith LLP. Fundsmith was established in 2010 by Terry Smith. The business is owned and controlled by its partners, Fund Aim The Company’s investment policy is to invest in companies which, in the opinion of the Investment Manager, have the majority of their operations in, or revenue derived from, Developing Economies and which provide direct exposure to the rise of the consumer classes in those countries.The Investment Manager intends to find companies which make their money by a large number of everyday, repeat, relatively predictable transactions. Its strategy is to not overpay when buying the shares of such companies and then do as little dealing as possible in order to minimise the expenses of the Company, allowing the investee companies’ returns to compound for Shareholders with minimum interference. The Investment Manager will avoid the financial sector and heavily cyclical sectors such as construction and manufacturing, utilities, resources and transport, and will instead focus almost exclusively on consumer stocks and in any event only on stocks in companies which will benefit from the rise of the consuming class in the Developing Economies

Top 7 Holdings

 Vitasoy

Foshan Haitian

Eastern Tobacco

Britannia

Marico

Godrej

Travelsky

https://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=32594589&action=

JPMorgan American Investment Trust

The JPMorgan American Investment Trust is a London Listed Investment investment trust.

It aims to achieve capital growth from North American investments by outperformance of the S&P 500 index. The Company will predominantly invest in quoted companies including, when appropriate, exposure to smaller capitalisation companies, and emphasise capital growth rather than income. The Company has the ability to use borrowing to gear the portfolio within the range of 5% net cash to 20% geared in normal market conditions :-

https://am.jpmorgan.com/gb/en/asset-management/gim/per/products/d/jpmorgan-american-investment-trust-plc-ordinary-shares-gb00bkzgvh64?c3apidt=p40876157816&gclid=EAIaIQobChMIlNH6vtyQ4gIVFODtCh1EkQSREAAYASAAEgIL5PD_BwE#/portfolio

It holds:-

Apple Information Technology 5.7% of the fund

Microsoft Information Technology 5.3% of the fund

Wal-Mart Stores Consumer Staples 2.8% of the fund

Cisco Systems Information Technology 2.7% of the fund

Citigroup Financials 2.6% of the fund

AT&T Communication Services 2.6% of the fund

AIG Financials 2.3% of the fund

Comcast Communication Services 2.3% of the fund

United Health Group Health Care 2.3% of the fund

Lowes Consumer Discretionary 2.3% of the fund https://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10181&record_search=1&search_phrase=JAM

UK National Debt: GILTS outstanding

The UK Government borrows money to fund its operations by issuing bonds, known as Gilts.

Today, the Number of Gilts issued add up to:-

Total Amount Outstanding (including inflation uplift for index-linked gilts) = £1,604.38 billion nominal. That is £1.606 TRILLION.

The data below:-

GILTS IN ISSUE ON 30 APRIL 2019 Total Amount Outstanding (including inflation uplift for index-linked gilts) = £1,604.38 billion nominal Conventional Gilts Redemption Date “Total Amount in Issue (£ million nominal)” Ultra-Short 1¾% Treasury Gilt 2019 22-Jul-2019 36,505 3¾% Treasury Gilt 2019 07-Sep-2019 28,740 4¾% Treasury Stock 2020 07-Mar-2020 33,699 2% Treasury Gilt 2020 22-Jul-2020 32,531 3¾% Treasury Gilt 2020 07-Sep-2020 24,870 1½% Treasury Gilt 2021 22-Jan-2021 32,836 8% Treasury Stock 2021 07-Jun-2021 24,354 3¾% Treasury Gilt 2021 07-Sep-2021 28,718 4% Treasury Gilt 2022 07-Mar-2022 38,393 Short 0½% Treasury Gilt 2022 22-Jul-2022 28,974 1¾% Treasury Gilt 2022 07-Sep-2022 29,392 0¾% Treasury Gilt 2023 22-Jul-2023 29,569 2¼% Treasury Gilt 2023 07-Sep-2023 27,799 1% Treasury Gilt 2024 22-Apr-2024 21,017 2¾% Treasury Gilt 2024 07-Sep-2024 27,231 5% Treasury Stock 2025 07-Mar-2025 35,487 2% Treasury Gilt 2025 07-Sep-2025 28,018 Medium 1½% Treasury Gilt 2026 22-Jul-2026 27,181 1¼% Treasury Gilt 2027 22-Jul-2027 23,728 4¼% Treasury Gilt 2027 07-Dec-2027 31,367 1 5/8% Treasury Gilt 2028 22-Oct-2028 27,027 6% Treasury Stock 2028 07-Dec-2028 19,251 4¾% Treasury Gilt 2030 07-Dec-2030 34,035 4¼% Treasury Stock 2032 07-Jun-2032 35,855 Long 4½% Treasury Gilt 2034 07-Sep-2034 32,157 4¼% Treasury Stock 2036 07-Mar-2036 30,111 1¾% Treasury Gilt 2037 07-Sep-2037 21,407 4¾% Treasury Stock 2038 07-Dec-2038 25,496 4¼% Treasury Gilt 2039 07-Sep-2039 23,033 4¼% Treasury Gilt 2040 07-Dec-2040 25,137 4½% Treasury Gilt 2042 07-Dec-2042 26,947 3¼% Treasury Gilt 2044 22-Jan-2044 27,665 3½% Treasury Gilt 2045 22-Jan-2045 27,947 4¼% Treasury Gilt 2046 07-Dec-2046 23,379 1½% Treasury Gilt 2047 22-Jul-2047 24,446 1¾% Treasury Gilt 2049 22-Jan-2049 6,266 4¼% Treasury Gilt 2049 07-Dec-2049 20,004 3¾% Treasury Gilt 2052 22-Jul-2052 23,869 4¼% Treasury Gilt 2055 07-Dec-2055 26,300 1¾% Treasury Gilt 2057 22-Jul-2057 18,430 4% Treasury Gilt 2060 22-Jan-2060 23,886 2½% Treasury Gilt 2065 22-Jul-2065 19,554 3½% Treasury Gilt 2068 22-Jul-2068 19,714 1 5/8% Treasury Gilt 2071 22-Oct-2071 11,320 “Index-linked Gilts (3-month Indexation Lag)” “Redemption Date” “Total Amount in Issue (£ million nominal)” Base RPI for Jan 1987 RPI=100 “Total Amount Including Index-linked Uplift (£ million nominal)” 0 1/8% Index-linked Treasury Gilt 2019 22-Nov-2019 8,183 249.806450000000 9,336 1 7/8% Index-linked Treasury Gilt 2022 22-Nov-2022 15,743 205.658060000000 21,817 0 1/8% Index-linked Treasury Gilt 2024 22-Mar-2024 15,244 242.419350000000 17,921 0 1/8% Index-linked Treasury Gilt 2026 22-Mar-2026 13,455 258.241940000000 14,849 1¼% Index-linked Treasury Gilt 2027 22-Nov-2027 14,170 194.066670000000 20,810 0 1/8% Index-linked Treasury Gilt 2028 10-Aug-2028 4,836 279.233330000000 4,936 0 1/8% Index-linked Treasury Gilt 2029 22-Mar-2029 14,229 237.420000000000 17,081 1¼% Index-linked Treasury Gilt 2032 22-Nov-2032 13,460 217.132260000000 17,667 0¾% Index-linked Treasury Gilt 2034 22-Mar-2034 14,570 232.229030000000 17,881 0 1/8% Index-linked Treasury Gilt 2036 22-Nov-2036 10,423 260.019350000000 11,425 1 1/8% Index-linked Treasury Gilt 2037 22-Nov-2037 13,066 202.242860000000 18,412 0 5/8% Index-linked Treasury Gilt 2040 22-Mar-2040 14,090 216.522580000000 18,546 0 1/8% Index-linked Treasury Gilt 2041 10-Aug-2041 5,750 280.054840000000 5,852 0 5/8% Index-linked Treasury Gilt 2042 22-Nov-2042 12,559 212.464520000000 16,847 0 1/8% Index-linked Treasury Gilt 2044 22-Mar-2044 15,726 242.422580000000 18,487 0 1/8% Index-linked Treasury Gilt 2046 22-Mar-2046 13,486 257.790000000000 14,909 0¾% Index-linked Treasury Gilt 2047 22-Nov-2047 11,687 207.766670000000 16,031 0 1/8% Index-linked Treasury Gilt 2048 10-Aug-2048 8,198 274.793330000000 8,502 0½% Index-linked Treasury Gilt 2050 22-Mar-2050 12,221 213.400000000000 16,322 0¼% Index-linked Treasury Gilt 2052 22-Mar-2052 12,366 242.050000000000 14,560 1¼% Index-linked Treasury Gilt 2055 22-Nov-2055 10,169 192.200000000000 15,079 0 1/8% Index-Linked Treasury Gilt 2056 22-Nov-2056 5,980 264.883330000000 6,435 0 1/8% Index-linked Treasury Gilt 2058 22-Mar-2058 10,953 255.887100000000 12,199 0 3/8% Index-linked Treasury Gilt 2062 22-Mar-2062 12,480 235.829030000000 15,082 0 1/8% Index-linked Treasury Gilt 2065 22-Nov-2065 7,250 260.434480000000 7,934 0 1/8% Index-linked Treasury Gilt 2068 22-Mar-2068 12,600 249.700000000000 14,381 “Index-linked Gilts (8-month Indexation Lag)” “Redemption Date” “Total Amount in Issue (£ million nominal)” Base RPI for Jan 1987 RPI=100 “Total Amount Including Index-linked Uplift (£ million nominal)” 2½% Index-linked Treasury Stock 2020 16-Apr-2020 6,579 82.965779467681 22,536 2½% Index-linked Treasury Stock 2024 17-Jul-2024 6,821 97.667934093790 19,849 4 1/8% Index-linked Treasury Stock 2030 22-Jul-2030 4,841 135.100000000000 10,184 2% Index-linked Treasury Stock 2035 26-Jan-2035 9,084 173.600000000000 14,871

HM Government April 2019 Borrowings

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 April 2019 , 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 http://www.dmo.gov.uk/ to raise cash for HM Treasury:-

16-Apr-2019 1¾% Treasury Gilt 2037 £2,250.00 Million

09-Apr-2019 1 5/8% Treasury Gilt 2028 £3,135.10 Million

02-Apr-2019 1% Treasury Gilt 2024 £3,450.00 Million

When you add the cash raised:-

(£2,250.00 Million + £3,135.10 Million + £3,450.00 Million) = £8835.1 Million

£8835.1 Million = £8.8351 Billion

On another way of looking at it, is in the 30 days in April, HM Government borrowed:- £294.5033333333333 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 2024, 2028 and 2037. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….

Mercantile Investment Trust

The Mercantile Investment Trust, is a FTSE-250 London Listed Investment Trust, managed by JP Morgan.

https://am.jpmorgan.com/gb/en/asset-management/gim/per/products/d/the-mercantile-investment-trust-plc-ordinary-shares-gb00bf4jdh58#/portfolio

It aims to achieve capital growth through investing in a diversified portfolio of UK medium and smaller companies. It pays quarterly dividends and aims to grow its dividend at least in line with inflation. The Company can hold up to 10% cash or utilise gearing of up to 20% of net assets where appropriate

TOP 10 assets, Sector, % of assets:-

Bellway Consumer Goods 3.2% of the fund

Intermediate Capital Financials 3.0% of the fund

Spirax Sarco Industrials 2.3% of the fund

SSP Consumer Services 2.1% of the fund

Grafton Industrials 2.1% of the fund

AVEVA Technology 2.0% of the fund

Beazley Financials 1.8% of the fund

B&M Consumer Services 1.8% of the fund

Bodycote Industrials 1.8% of the fund

Close Brothers Financials 1.8% of the fund

https://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10190&record_search=1&search_phrase=mrc

A yield of 3%