Monthly Archives: January 2020

HM Government Borrowing, December 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 December 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” 4 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-

17-Dec-2019 2% Treasury Gilt 2025 3,162.4960 Million
11-Dec-2019 0 1/8% Index-linked Treasury Gilt 2048 500.0000 Million
05-Dec-2019 1¾% Treasury Gilt 2049 2,082.4500 Million
03-Dec-2019 0 7/8% Treasury Gilt 2029 3,162.4980 Million

When you add the cash raised:-

£3,162.4960Million + £500.0000Million + 2,082.4500Million + 3,162.4980Million = £8907.444 Million

£8907.444 Million = £8.907444 Billion

On another way of looking at it, is in the 31 days in December, HM Government borrowed:- £287.3369032258065Million 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, 2029, 2048 and 2049. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”

Ashoka India Equity Investment Trust PLC

The Ashoka India Equity Investment Trust PLC is a London listed investment trust. The investment objective of the Company is to achieve long-term capital appreciation, mainly through investment in securities listed in India and listed securities of companies with a significant presence in India.

It’s top ten holdings are:-

Bajaj Finance, Financials, 7.2% of the fund
Bajaj Finserve, Financials, 7.1% of the fund
HDFC Bank, Financials, 4.9% of the fund
HDFC Asset Management Co, Financials, 4.7% of the fund
Asian Paints, Materials, 4.2% of the fund
Titan Co, Consumer Discretionary, 3.7% of the fund
NIIT Technologies, Information Technology, 3.5% of the fund
L&T Technology Services, Industrials, 3.5% of the fund
Navin Fluorine International, Materials, 3.4% of the fund
Maruti Suzuki India, Consumer Discretionary, 3.2% of the fund

Total Portfolio 45.2%


3i Infrastructure Dividend.

3i Infrastructure paid out its Jan 2020 dividend on Monday 13th Jan 2020.

4.6p a share.

3i Infrastructure plc has 891,434,010 issued ordinary shares with voting rights admitted to trading on a regulated and prescribed market.


891,434,010 x £0.046 = £41,005,964.46

That is £41m

A yield of 4.37%

Dr Alan Rogers

You cannot legislate the poor into freedom by legislating the wealthy out of freedom. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that my dear friend, is the end of any nation. You cannot multiply wealth by dividing it

BMO Managed Portfolio Trust PLC

The BMO Managed Portfolio Trust PLC is a funds of funds.

The Managed Portfolio Trust is a ‘multi-manager’ portfolio, investing in trusts managed by different investment providers. The diversification – The multi-manager approach ensures a broad mix of holdings, including ‘alternative’ assets.

Its top ten holdings are:-

Monks Investment Trust. 4.3% of the fund

Allianz Technology Trust 3.5% of the fund

HgCapital Trust 3.3% of the fund

Polar Capital Technology Trust 3.1% of the fund

Worldwide Healthcare Trust 3.1% of the fund

RIT Capital Partners 3.0% of the fund

Mid Wynd International Investment Trust 2.9% of the fund

BH Macro 2.9% of the fund

Impax Environmental Markets 2.9% of the fund

TR Property Investment Trust 2.8% of the fund

Geographic Breakdown:-

UK 26.0% of the fund

North America 24.0% of the fund

Europe 15.0% of the fund

Cash 12.0% of the fund

Far East & Pacific 9.0% of the fund

Japan 5.0% of the fund

Fixed Interest 3.0% of the fund

China 3.0% of the fund

South America 1.0% of the fund

Africa 1.0% of the fund

Other 1.0

The M&G property fund

M&G, the UK investment house, is in the press at the moment regarding its property fund. M&G temporarily suspended dealings in its property portfolio. It said Brexit-related political uncertainty and structural shifts in the UK retail sector had made it difficult to sell commercial property to meet demand from investors to have their cash returned M&G’s top holdings at the end of October 2019 were:-

1 New Square, Bedfont Lakes office park – 7.09% of the fund (Office development in Heathrow)

2 Wales Designer Outlet, Bridgend – 5.07% (Tenants include Marks & Spencer, Gap and Next)

3 Parc Trostre retail park, Llanelli, Wales – 4.5% (Tenants include M&S, Debenhams, New Look, Primark, River Island and Next)

4 Fremlin Walk shopping centre, Maidstone – 3.47% (Tenants include House of Fraser, Laura Ashley, HMV, Paperchase, River Island, Superdry, Topshop and Zara)

5 Iron Mountain distribution warehouse, Belvedere, Kent – 3.41%

6 Riverside retail park, Chelmsford – 3.39% (Tenants include Sports Direct, Matalan, Home Bargains, Poundstretcher, Smyths Toys)

7 Aurora, 120 Bothwell Street, Glasgow – 3.21% (Office building)

8 Gracechurch Centre, Sutton Coldfield near Birmingham – 2.82% (Tenants include House of Fraser, New Look, Sports Direct, Topshop, River Island and JD Sports)

9 Enterprises House, Uxbridge – 2.47% (UK and European headquarters for Coca-Cola)

10 Lindis retail park, Lincoln – 2.42% (Tenants include Sainsbury’s, Matalan, Bargain Buys and Domino’s)

Rolls Royce Jan 2020 Dividend.

Yesterday, Rolls Royce PLC paid out its Jan 2020 Dividend.

4.6p a share.

The total number of voting rights in the Company is 1,930,995,313


1,930,995,313 x 0.046 = £88,825,784.398

That is £88m

1.7% yield

IBM Market Capitalisation

Yesterday (Tue 10th December), IBM paid out this dividend of $1.62 a share.

Reading the annual report:

We discover that The authorized capital stock of IBM consists of 4,687,500,000 shares of common stock with a $.20 per share par value, of which 892,479,411 shares were outstanding at December 31, 2018 and 150,000,000 shares of preferred stock with a $.01 per share par value, none of which were outstanding at December 31, 2018


892,479,411 x current share price of $132 = $117,807,282,252

That is $117bn.

Now the dividend of $1.62 a share will cost IBM:-

$1.62 a share x 892,479,411 = $1,445,816,645.82

That is $1.445 Billon.