On the 26th Aug, a few days ago the FTSE-250 green energy company UK Greencoat Wind paid out a quarterly dividend.
A graph of ascent.
https://www.greencoat-ukwind.com/
1.93p a share.
https://www.londonstockexchange.com/news-article/UKW/total-voting-rights/15346901
total voting rights figure will be 2,317,352,677
Thus:-
2,317,352,677 x £0.0193 = £44,724,906.6661
That is £44.724 Million
https://www.londonstockexchange.com/stock/UKW/greencoat-uk-wind-plc/company-page
Its investment strategy 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.
Set up in 2018.
The graph shows its recent volatility. However it is now to its ascent.
Top Ten Holdings:-
ICICI Bank Ltd 6.42% of the trust.
Infosys Ltd 5.57% of the trust.
Titan Co Ltd 3.84% of the trust.
Asian Paints Ltd 3.37% of the trust.
Persistent Systems Ltd 2.79% of the trust.
Laxmi Organic Industries Ltd 2.67% of the trust.
Axis Bank Ltd 2.49% of the trust.
Cipla Ltd 2.49% of the trust.
Nestle India Ltd 2.46% of the trust.
Maruti Suzuki India Ltd 2.44% of the trust.
https://www.londonstockexchange.com/stock/AIE/ashoka-india-equity-investment-trust-plc/company-page
The Wellcome Trust improves health for everyone by funding research, leading policy and advocacy campaigns, and building global partnerships. Collaborative research that involves a diverse range of people from different fields of interest is key to progress in health science – and to achieving our aim of fostering a healthier, happier, world.
“Wellcome is a global charitable foundation. We want everyone to benefit from science’s potential to improve health and save lives”
Its financial report makes interesting reading.
With over £36,261 Million = £36 Billion in investments it was able to make an overall charitable spend in this year was £1,233 million across science, innovation, culture and society, and priority areas.
What an investment return of over 34% on the year.
The investments were in key areas:-
The investment returns are spectacular.
Its asset allocaton below shows its diversity.
Top Ten Holdings:-
Inflation is raging in the UK, now at over 10% in the UK. In the video below we see Ray Dalio talking to the great and late Paul Volcker, the Chairman of the US Federal Reserve, who was appointed by President Carter.
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.
Now we are in a post Covid 19 world. UK’s HM Government needs to fund many new demands. [www.dmo.gov.uk]
https://dmo.gov.uk/data/pdfdatareport?reportCode=D2.1PROF7
Another deficit month, thus to bridge the gap, needs to borrow on the bond market In July 2022, 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 5 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
27-Jul-2022 0 1/8% Index-linked Treasury Gilt 2051 3 months £700.0000 Million
21-Jul-2022 0¼% Treasury Gilt 2025 £4,366.2490 Million
19-Jul-2022 1 1/8% Treasury Gilt 2039 £2,500.0000 Million
12-Jul-2022 1% Treasury Gilt 2032 £3,437.5000 Million
05-Jul-2022 1¼% Treasury Gilt 2051 £2,378.7500 Million
£700.0000 Million + £4,366.2490 Million + £2,500.0000 Million + £3,437.5000 Million + £2,378.7500 Million = £13,382.499 Million
£13,382.499 Million = £13.382499 Billion
On another way of looking at it, is in the 31 days in July 2022, HM Government borrowed:- £431.69351612903225806451612903226 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 maturing from 2025 to 2051. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together……”
The UK Government, spends more that it earns in taxes. To bridge that gap, it borrows, issues debt, knows as Gilts.
https://dmo.gov.uk/data/gilt-market/index-linked-gilts/
Some of the borrowings, (debt issued), the interest rate paid to the creditors, is linked to the current inflation rate. Interesting to see how much debt the nation has to pay, where the interest paid on its debt, is linked to the current rate of inflation.
https://www.bbc.co.uk/news/business-62562025
10.1% is the current inflation rate.
So debt linked to the inflation rate, means the interest payments are “inflated by the inflation rate”
The pictures below show how much the UK currently owes that is linked to inflation.
£360,135.95 Million, and after factoring into inflation, that figure becomes £547,599.18 Million
That is £360 Billion that becomes £547 Billion
Controlling personal laziness and greed is an individual responsibility
The HSBC annual report makes interesting reading. HSBC is one of the largest banking groups in the world.
The annual report and financial statements give a scale of the business.
https://www.hsbc.com/investors/results-and-announcements/annual-report
Revenues of $49.552 bn = £41.403 Bn
The scale and strength of the Balance Sheet:-
They held high-quality liquid assets of $717 Bn = £599.086 Bn = £0.599 Trillion
How the bank funds itself, mainly from customer deposits.
The largest shareholders are BlackRock and Ping Insurance.
The balance sheet:
$403,018 million = £336,740 million HSBC Deposits with central banks
$1,045,814 million = £873,826 million Loans to customers
$1,710,574 million = £1,429,263 million Customers deposits with HSBC
$78,557 million = £65,638 million of debt (securities issues, bonds)
The CT Global Managed Portfolio Trust is a ‘multi-manager’ investment trust, investing in a range of investment companies giving you exposure to different investment providers and markets within a single investment trust managed by Columbia Threadneedle
https://www.ctglobalmanagedportfolio.co.uk
Top Ten Holdings:-
HgCapital Trust 3.7% of the trust, Private Equity
Fidelity Special Values 3.5% of the trust, UK All Companies
Law Debenture Corporation 3.3% of the trust, UK Equity Income
Mid Wynd International Investment Trust 3.0% of the trust, Global
BH Macro 2.9% of the trust, Hedge Funds
Ruffer Investment Company 2.8% of the trust, Flexible Investment
RIT Capital Partners 2.8% of the trust, Flexible Investment
Personal Assets Trust 2.7% of the trust, Flexible Investment
Capital Gearing Trust 2.6% of the trust, Flexible Investment
Worldwide Healthcare Trust 2.5% of the trust, Biotechnology & Healthcare
https://www.londonstockexchange.com/stock/CMPG/ct-global-managed-portfolio-trust-plc/company-page
Last week, on Friday 5th August 2022, Vodafone PLC paid out its August dividend.
Vodafone is the UK’s 2nd largest telecoms group, with BT Group PLC, being the Premier telecoms operator.
It paid out €0.045 Cents a share = £0.03785130 a share.
https://investors.vodafone.com/individual-shareholders/dividends
The total number of voting rights in Vodafone is 27,945,252,322
https://www.londonstockexchange.com/news-article/VOD/total-voting-rights/15564873
Thus:-
27,945,252,322 x £0.03785130 = £1,057,764,129.2157186
£1057 Million = £1.057 Billion paid to shareholders
https://www.londonstockexchange.com/stock/VOD/vodafone-group-plc/company-page
Exxon Mobil is the US Oil and Gas energy giant. It is American’s largest energy company.
Last week it announced some amazing revenues
Salient Points:-
Second-quarter earnings of $17.9 billion compared with $5.5 billion in the first quarter of 2022. Cash increased by $7.8 billion in the second quarter, as strong cash flow from operating activities more than covered capital investments and shareholder distributions.
The annual report for 2021 carries some very interesting figure.
Total debt of $ = $47,704 million = £39,248 million
Cost of financing (interest payments) the debt = $1,355 million = £1,114 million
The 2nd largest UK telecoms operator is Vodafone PLC.
The largest and most dynamic telecoms operator is British Telecommunications PLC
Some interesting points can be found in the results of Vodafone
https://investors.vodafone.com/sites/vodafone-ir/files/2022-05/FY22-Press-release-Final.pdf
The revenues are huge. Cash in the door from the business operations.
€45,580 Million = £38,794.80 Million = £38.794 Billion
Total Debt of €41,578 Million = £35,388.60 Million = £35.3886 Billion
One can see total debt of €41,578 Million, but the total debt is €53,257 Million = £45,329 Million = £45.329 Billion.
Vodafone holds liquidity of cash and near term cash assets of €7,496 Million + €4,795 Million + €1,604) = €13,895 Million = £11.8265 Billion.
Now Total debt is €53,257 Million = £45,329 Million = £45.329 Billion.
Financing costs = interest payment costs are €1,964 Million = £1,671.63 Million = £1.67163 Billion.
So a rough calculation on Vodafone’s interest payment of £1,671.63 Million on the total debt of £45.329 Billion, (£1.67163 Billion / £45.329 Billion) tells us that Vodafone on average is paying approximately an interest rate of 3.68% a year on its debt. That is cheap borrowing.
Consider the facts, revenues of £38.794 Billion, interest payments of £1.67163 Billion and holding cash and near cash assets of £11.8265 Billion
Yesterday, with much media excitement, BP announced its Q2 results
The media were in a frenzy anout the size of the figures
https://news.sky.com/story/bp-reports-second-quarter-profit-of-8-45bn-highest-in-14-years-12663939
When one looks at the figures it is important to get past the “feeding frenzy” and look at the results in detail.
$9.2 Bn Profit = £7.52192 Bn
Current Debt of $22.8 Bn = £18.6413 Bn
Finance Costs, (interest payments) in the quarter = $556m = £454.586m
So by doing some simple forecasting, if total debt is £18.6413 Bn and BP is paying £454.586m a quarter, in a year, it is paying (£454.586m x 4 = £1,818.344 a year on its debt).
That means, (£18.6413 Bn / £1.818.344 bn) its rough annual interest rate on its debt is 10.25%.
The balance sheet is large. $299bn
https://www.londonstockexchange.com/stock/BP./bp-plc/company-page
Today, United Utilities PLC pays out the August 2022 dividend.
https://www.unitiedutilities.com
29p a share.
The total voting rghts is 681,888,418.
Thus:-
681,888,418 x £0.29 = £197,747,641.22
That is £197 Million
https://www.londonstockexchange.com/stock/UU./united-utilities-group-plc/company-page