Monthly Archives: August 2019

HM Government Borrowings: July 2019

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 July 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 to raise cash for HM Treasury:-

  02-Jul-2019 0 5/8% Treasury Gilt 2025 3,373.0970 Million

16-Jul-2019 1¾% Treasury Gilt 2037 2,250.0000 Million

23-Jul-2019 0 7/8% Treasury Gilt 2029 3,162.4970 Million

When you add the cash raised:- 3,373.0970 Million + 2,250.0000 Million + 3,162.4970 Million = £8785.594 Million

£8785.594 Million = £8.785594 Billion

On another way of looking at it, is in the 31 days in July, HM Government borrowed:- £283.40625806451612903225806451613 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 2025, 2029 and 2037 All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….

Legal & General Multi-Index Income 6 Fund

The objective of this fund is to provide a combination of income and capital growth and to keep the fund within a pre-determined risk profile. While this will be the fund’s focus, it will have a bias towards investments that pay a higher income. At least 75% of the fund will be invested in other authorised investment funds. The fund will invest at least 50% in index-tracker funds which are operated by Legal & General.

It is spread across 5 asset classes:-

Government Bonds 2.1% of the fund

Equities 58.4% of the fund

Cash 0.3% of the fund

Credit and Emerging Market Debt 29.6% of the fund

Alternatives 9.6% of the fund


L&G UK Index Trust 9.9% of the fund

L&G Emerging Markets Government Bond (Local Currency) Index Fund 7.9% of the fund

iShares UK Dividend UCITS ETF 7.5% of the fund

L&G Emerging Markets Government Bond (US$) Index Fund 7.4% of the fund

L&G US Index Trust 7.0% of the fund

L&G Pacific Index Trust 6.4% of the fund

L&G High Income Trust 6.2% of the fund

L&G European Index Trust 5.9% of the fund

LGIM Global Corporate Bond Fund 5.0% of the fund

L&G UK Property Fund 4.4% of the fund

The Vodafone August 2019 Dividend.

On Friday 2nd August, Vodafone plc paid out its August dividend.

€0.0416 a share = 3.725072p

The total number of voting rights in Vodafone is 26,767,415,647

26,767,415,647 x £0.03725072 = £997,105,505.39001584

That is £997m.

A yield of over 4%

The United Utilities August Dividend

On August 1st 2019, United Utilities paid out its August dividend.

£0.2752 a share.

What was the cost of the dividend ?

United Utilities as 681,888,000 shares in circulation:-

681,888,000 x £0.2752 = £187,655,577.6

That is £187m

4% yield.

The Legal and General Multi Manager Income Trust

The Legal and General Multi Manager Income Trust is a Unit Trust that invests in other funds.

It holds:-

Equities 46.6% of the fund

Credit and Emerging Market Debt 26.6% of the fund

Alternatives 16.8% of the fund

Government Bonds 9.4% of the fund

Cash 0.7% of the fund

The fund investment objective is to achieve a high income with some potential for capital growth. The fund will invest in a wide range of investment funds (including funds which are not authorised for sale in the UK) that hold company shares, bonds issued by companies and governments, commercial property and cash. The fund manager will select investment funds that invest across all countries, currencies and sectors.


LGIM Sterling Liquidity Fund 9.1% of the fund

Nordea 1 Global High Yield Bond Fund 8.6% of the fund

Schroder Recovery Fund 8.4% of the fund

Neuberger Berman Global Bond ARB 6.8% of the fund

Artemis Income Fund 5.7% of the fund

MI TwentyFour AM Dynamic Bond Fund 4.9% of the fund

BlackRock Emerging Markets Loc Curr 4.1% of the fund

Legg Mason Gbl Fd Wstn Asset Stru Opp Prem Cl 4.0% of the fund

Man GLG Continental European Growth 3.8% of the fund