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 October 2023, 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” 6 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-

25-Oct-2023 3¾% Treasury Gilt 2038 £3,220.3120 Million
24-Oct-2023 0¾% Index-linked Treasury Gilt 2033 3 months £1,500 Million
17-Oct-2023 3¾% Treasury Gilt 2053 £2,750.0000 Million
11-Oct-2023 4 5/8% Treasury Gilt 2034 £4,687.4990 Million
10-Oct-2023 0 1/8% Index-linked Treasury Gilt 2039 3 months £900.0000 Million
04-Oct-2023 3½% Treasury Gilt 2025 £5,312.5000 Million

£3,220.3120 Million + £1,500 Million + £2,750.0000 Million + £4,687.4990 Million + £900.0000 Million + £5,312.5000 Million = £18,369.811 Million

£18,369.811 Million = £18.369811 Billion

On another way of looking at it, is in the 31 days in Oct 2023, HM Government borrowed:- £592.57454838709677419354838709677 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 bonds maturing from 2025 to 2053. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……“

The Dunedin Income Growth Investment Trust, was formed in 1873 in Dundee, targeting growth of income and capital from a portfolio invested mainly in UK companies that meet the Company’s Sustainable and Responsible investing criteria.

Twenty largest equity holdings (%)

AstraZeneca 8.9% of the fund
Unilever 7.2% of the fund
TotalEnergies 5.7% of the fund
RELX 5.2% of the fund
Diageo 4.5% of the fund
London Stock Exchange 4.5% of the fund
Chesnara 3.4% of the fund
SSE 2.8% of the fund
Games Workshop 2.7% of the fund
Sage 2.7% of the fund
Weir 2.6% of the fund
Intermediate Capital 2.6% of the fund
Taylor Wimpey 2.5% of the fund
Prudential 2.5% of the fund
M&G 2.3% of the fund
Edenred 2.3% of the fund
Coca-Cola HBC 2.2% of the fund
Volvo 2.1% of the fund
Nordea Bank 2.1% of the fund
Morgan Sindall 2.1% of the fund

Total 70.9 % of the fund
Total number of investments 36

https://www.londonstockexchange.com/stock/DIG/dunedin-income-growth-investment-trust-plc/company-page

Tomorrow, Tesco PLC pays out its November 2023 dividend.

https://www.tescoplc.com/

3.85p a share

https://www.londonstockexchange.com/news-article/TSCO/total-voting-rights/16191782

The Company’s share capital as at 31 October 2023 consisted of 7,095,089,662 ordinary shares of 6 1/3 pence each. Each ordinary share carries the right to one vote in relation to all circumstances at general meetings of the Company. The Company does not hold any shares in Treasury.

Thus:-

7,095,089,662 x £0.0385 = £273,160,951.987

£273.16 Million paid to shareholders

https://www.londonstockexchange.com/stock/TSCO/tesco-plc/company-page

Humility – Carl Sagan – YouTube

The Company aims to achieve capital and income growth by investing on a worldwide basis. Although the Company aims to provide dividend growth over time, its primary aim is to maximise total returns to shareholders.

https://www.lazardassetmanagement.com/uk/en_uk/funds/investment-trusts/mid-wynd-investment-trust/f5461/s36/?shareClass=14121

NET ASSET VALUE (p)
688.89

SHARE PRICE (p)
675.00

PREMIUM / DISCOUNT (%)
-2.02

YIELD (%)
1.16

MARKET CAP (£)
378.7 million

The investments:-

Equities

Amazon North America Consumer Discretionary Online Services £16.969m 3.8% of the fund
Alphabet North America Communication Services Online Services £15,682m 3.5% of the fund
LVMH Moet Hennessy Louis Vuitton Europe Consumer Discretionary Sustainable Consumer £14.052m 3.1% of the fund
Microsoft North America Information Technology Online Services £13.658m 3.0% of the fund
Taiwan Semiconductor Manufacturing Emerging Markets Information Technology Automation £13.100m 2.9% of the fund
UnitedHealth Group North America Health Care Healthcare Costs £12.917m 2.9% of the fund
Mastercard North America Financials Digital Finance £12,326m 2.7% of the fund
Rockwell Automation North America Industrials Automation £11.363m 2.5% of the fund
Merck North America Health Care Healthcare Costs £11,091m 2.5% of the fund
Singapore Telecommunications Developed Asia Communication Services Screen Time £11.063m 2.5% of the fund
Top 10 investments £132.221m 29.4% of the fund

Thermo Fisher Scientific North America Health Care Scientific Equipment £11.046m 2.5% of the fund
Mitsubishi UFJ Financial Group Japan Financials Digital Finance £10.475m 2.3% of the fund
Humana North America Health Care Healthcare Costs £10.353m 2.3% of the fund
Essilorluxottica Europe Health Care Sustainable Consumer £9.671m 2.2% of the fund
Cie Financiere Richemont Europe Consumer Discretionary Sustainable Consumer £9.497m 2.1% of the fund
Sumitomo Mitsui Financial Group Japan Financials Digital Finance £9.350m 2.1% of the fund
ANSYS North America Information Technology Automation £9.317m 2.1% of the fund
Union Pacific North America Industrials Lower Carbon World £9.,159m 2.0% of the fund
Schneider Electric Europe Industrials Lower Carbon World £9.118m 2.0% of the fund
Synopsys North America Information Technology Automation £8.652m 1.9% of the fund
Top 20 investments 228.859m 50.9% of the fund

Novo Nordisk Europe Health Care Healthcare Costs £8.602m 1.9% of the fund
Keyence Japan Information Technology Automation £8.563m 1.9% of the fund
Omnicom North America Communication Services Screen Time £8.442m 1.9% of the fund
Panasonic Holdings Japan Consumer Discretionary Lower Carbon World £8.393m 1.9% of the fund
Estee Lauder North America Consumer Staples Sustainable Consumer £8.358m 1.9% of the fund
Accenture North America Information Technology Online Services £8.208m 1.8% of the fund
Mettler-Toledo International North America Health Care Scientific Equipment £7.661m 1.7% of the fund
Adobe North America Information Technology Online Services £7.550m 1.7% of the fund
Revvity (formerly PerkinElmer) North America Health Care Scientific Equipment £7.520m 1.7% of the fund
SMC Japan Industrials Automation £7.480m 1.7% of the fund
Top 30 investments £309.636m 69.0% of the fund

Siemens AG Europe Industrials Lower Carbon World £7.401m 1.6% of the fund
Halliburton North America Energy Lower Carbon World £7.220m 1.6% of the fund
Samsung Developed Asia Information Technology Screen Time £7.155m 1.6% of the fund
Avery Dennison North America Materials Sustainable Consumer £7.088m 1.6% of the fund
Proctor & Gamble North America Consumer Staples Sustainable Consumer £7.026m 1.6% of the fund
Rio Tinto UK Materials Lower Carbon World £6.980m 1.6% of the fund
Diageo UK Consumer Staples Sustainable Consumer £6.761m 1.5% of the fund
EQT North America Energy Lower Carbon World £6.643m 1.5% of the fund
Salesforce North America Information Technology Online Services £6.637m 1.5% of the fund
Hexagon Europe Information Technology Automation £6.636m 1.5% of the fund
Top 40 investments £379.183m 84.6% of the fund

Toyota Industries Japan Industrials Automation £6.397m 1.4% of the fund
Prologis (REIT)^ North America Real Estate Automation £6.335m 1.4% of the fund
Agilent Technologies North America Health Care Scientific Equipment £5.879m 1.3% of the fund
First Solar North America Information Technology Lower Carbon World £5.719m 1.3% of the fund
Uber Technologies North America Industrials Online Services £5.688m 1.3% of the fund
Unilever UK Consumer Staples Sustainable Consumer £5.566m 1.2% of the fund
Intel Corp North America Information Technology Automation £4.990m 1.1% of the fund
Toppan Japan Industrials Screen Time £4.456m 1.0% of the fund
Thai Beverage Developed Asia Consumer Staples Sustainable Consumer £4.146m 0.9% of the fund
Lam Research North America Information Technology Automation £3.193m 0.7% of the fund
Top 50 investments £431.,552m 96.2% of the fund

Gore Street Energy Storage Fund UK Financials Lower Carbon World £3.129m 0.7% of the fund
Siemens Energy AG Europe Industrials Lower Carbon World £3.041m 0.7% of the fund
Aker Carbon Capture Europe Industrials Lower Carbon World £1.216m 0.2% of the fund
Total equity investments (53) £438.938m 97.8% of the fund
Net current assets £10.088m 2.2% of the fund

Total net assets £449.026m 100.0% of the fund

https://www.londonstockexchange.com/stock/MWY/mid-wynd-international-investment-trust-plc/company-page

M&G is a FTSE-100 money manager.

https://www.mandg.com/

What is interesting about this company is the dividend yield

The abrdn Smaller Companies Income Trust is a London listed investment trust.

The investment objective To provide a high and growing dividend and capital growth from a portfolio invested principally in the ordinary shares of smaller UK companies and UK fixed income securities

Ten largest equity holdings (%)
4imprint 3.9% of the trust
Morgan Sindall 3.9% of the trust
Games Workshop 3.7% of the trust
Hollywood Bowl 3.5% of the trust
Bytes Technology 3.4% of the trust
Tatton Asset Management 2.9% of the trust
Alpha FMC 2.9% of the trust
discoverIE 2.8% of the trust
Greggs 2.8% of the trust
Softcat 2.7% of the trust

Total 32.5% of the trust

Total investments £54,747,000 92.1%
Cash & cash equivalents £5,120,000 8.7%09
Other net assets (£450,000) (0.8%)
Debt – 0.0

https://www.londonstockexchange.com/stock/ASCI/abrdn-smaller-companies-income-trust-plc/company-page

Some interesting statistics we published last week from the US Treasury:-

Treasury to borrow $776 billion in final three months of year (cnbc.com)

The US Treasury said it expects to borrow $816 billion between January and March. The announcement comes 10 days after the government said the fiscal 2023 budget deficit would be about $1.7 trillion.

So in 2023 the US Government spends £1.7 Trillion MORE that the US Government receives in tax revenue and thus bridges the gap by borrowings.

Lets give some context to the level of the US Government spending:-

The United States led the ranking of countries with highest military spending in 2022, with 877 billion U.S. dollars dedicated to the military

America’s debt—now $26 Trillion and growing—also goes up. In the fiscal year ending on September 30th 2023, interest payments on America’s debt totalled some $660bn

What Are Interest Costs on the National Debt? (pgpf.org)