Monthly Archives: June 2019

Aquila European Renewables Income Fund objective is to provide investors with a truly diversified portfolio of renewable assets. The fund’s aim is to invest mostly in diversified operating and a limited number of greenfield renewable energy assets, such as hydropower-plants, onshore wind and solar parks across continental Europe & Ireland

https://www.aquila-capital.de/en/alternative-investments/real-assets/infrastructure/

This fund invests in energy projects that are green.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=54815984&action=

The late Jack Bogle

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BP June Dividend 2019

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Today, BP plc pays out it is quarerly dividend.

www.bp.com

8.0655p a share.

The total number of voting rights in BP p.l.c. is 20,350,821,343

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BP./14094792.html

Thus:- 20,350,821,343 x £0.080655 = £1,641,395,495.419665

That is £1,641 million = £1.641 Billion.

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

5.9% yield.

Boris Johnson: The Honest Truth

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Woodford Patient Capital Trust PLC

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Woodford Patient Capital Trust PLC is a closed-ended investment company. The Company’s principal activity is investment in quoted and unquoted equities of companies incorporated or listed predominantly in the United Kingdom. The Company’s investment objective is to achieve long-term capital growth through investing in a portfolio consisting predominantly of the United Kingdom companies, both quoted and unquoted. The Company is focused on investing in mid and large-capitalization listed, mature companies; early-stage companies, which are typically quoted and unquoted companies. The Company’s portfolio is diversified across various sectors, which include healthcare, financials, industrials, technology, consumer goods and telecommunication industries.

Its top ten holdings are:-

Benevolentai 9.81% of the fund

Oxford Nanopore Tech Ord 8.32% of the fund

Autolus Therapeutics PLC ADR 8.26% of the fund

Crossco (1337) Plc 8.07% of the fund

Proton Partners Int Ltd ORD GBP0.001 7.34% of the fund

IH HLDGS INTL LTD 6.74% of the fund

Immunocore Ltd Series 5.64% of the fund

Oxford Sciences Plc 4.62% of the fund

IH HLDGS INTL LTD 2.97% of the fund

https://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-summary/GB00BVG1CF25GBGBXSTMM.html

The Environment: Legal & General: Environmental Social and Governance

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https://www.youtube.com/watch?v=3ldIlweafvY

BT upgraded to ‘overweight’ by Credit Suisse

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Credit Suisse expects BT’s move away from sports rights ownership to boost free cash flow by up to £200mln by 2023

Credit Suisse has turned positive on BT Group PLC (LON:BT.A), citing a “much increased level of confidence” in the company’s ability to return to sustainable earnings growth from the 2021 financial year. The investment bank raised its recommendation on BT to ‘outperform’ from ‘neutral’ and lifted its target price to 280p from 270p. “The fact that BT trades on a four-year low enterprise value/earnings (EBITDA) adds to our conviction and more than offsets any short-term impact that the recent disappointment on fiscal year 2020 EBITDA guidance may have,” Credit Suisse said. “We are 2% ahead of fiscal 2022 consensus forecast for EBITDA.” Last month, BT reported a 2% drop in adjusted underlying earnings (EBITDA) to £7.39bn and a 1% decrease in adjusted revenue to £23.46bn for the year to March 31, as growth in the consumer business was offset by regulated price reductions in Openreach and declines in the enterprise businesses. For the 2020 financial year, BT expects adjusted EBITDA will fall to £7.2bn-£7.3bn as adjusted revenue falls by another 2%.

Fibre investment to improve revenue and earnings from 2021 BT said it would be focusing on investing in fibre broadband in the coming year. It increased its target for rolling out ‘fibre to the premises’ broadband from 3mln to 4mln homes and businesses by March 2021. Credit Suisse expects BT’s Openreach division will bring fibre to 15mln UK premises by 2025. The bank believes this will drive upgrades to its Openreach line loss forecasts and improve BT group revenue and EBITDA growth trends from fiscal year 2021. “Our revenue forecasts rise by 0-2% for full years 2020-22 on lower Openreach line loss of 2% per annum (3% per annum previously),” Credit Suisse said. “Our 2020-22 EBITDA forecasts fall by 0-1% mostly reflecting additional 2020 consumer costs for new initiatives that we expect to boost medium-term profitability.” BT’s move away from sports rights ownership to boost free cash flow BT confirmed that it would bid to retain the Champions League rights for a further three seasons from 2021 when they come up for auction this year but added that the group would take a “very disciplined approach to how we think about sports rights”.

Credit Suisse expects BT’s move away from sports rights ownership to boost free cash flow by up to £200mln by 2023 and would lift its fair value to 330p. “Risks include a deep UK recession and a Department for Digital, Culture, Media and Sport decision regarding a possible ban of Huawei equipment for UK telecom networks,” the bank said. BT’s EE network has dropped Huawei phones from their 5G launch plans amid a US export ban on the Chinese telecoms firm. The UK is still reviewing its 5G telecoms policy and whether to allow Huawei to supply components.

BT, the world’s premier communications company.

HM Government May 2019 Borrowings

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

23-May-2019 0 1/8% Index-linked Treasury Gilt 2028 3 months £1,437.4960 Million

09-May-2019 1% Treasury Gilt 2024 £3,000.0000 Million

When you add the cash raised:- (£1,437.4960 Million + £3,000.0000 Million) = £4437.496 Million

£4437.496 Million = £4.437496 Billion

On another way of looking at it, is in the 31 days in May, HM Government borrowed:- £143.1450322580645 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 2024 and 2028. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”