Monthly Archives: August 2022

Greencoat UK Wind Quarterly Dividend.

On the 26th Aug, a few days ago the FTSE-250 green energy company UK Greencoat Wind paid out a quarterly dividend.

Courtesy of the London Stock Exchange

A graph of ascent.

1.93p a share.

total voting rights figure will be 2,317,352,677


2,317,352,677 x £0.0193 = £44,724,906.6661

That is £44.724 Million

The Ashoka India Equity Investment Trust PLC

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.

The Wellcome Trust

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.

Courtesy of the Wellcome Trust annual report

What an investment return of over 34% on the year.

The investments were in key areas:-

Courtesy of the Wellcome Trust annual report

The investment returns are spectacular.

Courtesy of the Wellcome Trust annual report

Its asset allocaton below shows its diversity.

Courtesy of the Wellcome Trust annual report

Top Ten Holdings:-

HM Government Borrowings: July 2022

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. []

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……

HM Government Index Linked Debt.

The UK Government, spends more that it earns in taxes. To bridge that gap, it borrows, issues debt, knows as 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.

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

Courtesy of the UK Debt Management Office (DMO)
Courtesy of the UK Debt Management Office (DMO)

Carl Sagan

“One of the saddest lessons of history is this: If we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle. We’re no longer interested in finding out the truth. The bamboozle has captured us. It’s simply too painful to acknowledge, even to ourselves, that we’ve been taken. Once you give a charlatan power over you, you almost never get it back.” —Carl Sagan

HSBC Annual Report.

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.

Revenues of $49.552 bn = £41.403 Bn

Courtesy of HSBC Holdings PLC

The scale and strength of the Balance Sheet:-

Courtesy of HSBC Holdings PLC

They held high-quality liquid assets of $717 Bn = £599.086 Bn = £0.599 Trillion

How the bank funds itself, mainly from customer deposits.

Courtesy of HSBC Holdings PLC

The largest shareholders are BlackRock and Ping Insurance.

Courtesy of HSBC Holdings PLC

The balance sheet:

Courtesy of HSBC Holdings PLC

$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)

HSBC HOLDINGS PLC HSBA Stock | London Stock Exchange

The CT Global Managed Portfolio Trust

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

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

Vodafone August 2022 Dividend.

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.

Courtesy of Vodafone PLC

The total number of voting rights in Vodafone is 27,945,252,322


27,945,252,322 x £0.03785130 = £1,057,764,129.2157186

£1057 Million = £1.057 Billion paid to shareholders

Exxon Mobil Revenues

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.

Courtesy of Exxon Mobil

Total debt of $ = $47,704 million = £39,248 million

Courtesy of Exxon Mobil

Cost of financing (interest payments) the debt = $1,355 million = £1,114 million

Vodafone 2022 full year preliminary results.

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

Courtesy of Vodafone PLC

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

Courtesy of Vodafone PLC

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.

Courtesy of Vodafone PLC

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

VODAFONE GROUP PLC VOD Stock | London Stock Exchange

BP’s 2nd Quarter Results 2022

Yesterday, with much media excitement, BP announced its Q2 results

The media were in a frenzy anout the size of the figures

When one looks at the figures it is important to get past the “feeding frenzy” and look at the results in detail.

Courtesy of BP PLC

$9.2 Bn Profit = £7.52192 Bn
Current Debt of $22.8 Bn = £18.6413 Bn

Courtesy of BP PLC

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%.

Courtesy of BP PLC

The balance sheet is large. $299bn