Monthly Archives: February 2024

HM Government January 2024 Borrowings

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. https://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 January 2024, 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” 7 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-

30-Jan-2024 0 1/8% Index-linked Treasury Gilt 2051 3 months £961.7000 Million
24-Jan-2024 4½% Treasury Gilt 2028 £4,026.0000 Million
17-Jan-2024 4 5/8% Treasury Gilt 2034 £3,750.0000 Million
16-Jan-2024 0¾% Index-linked Treasury Gilt 2033 3 months £1,518.7750 Million
10-Jan-2024 3¾% Treasury Gilt 2027 £5,000.0000 Million
09-Jan-2024 4¾% Treasury Gilt 2043 £2,812.4990 Million
04-Jan-2024 3¾% Treasury Gilt 2038 £3,423.7490 Million

£961.7000 Million + £4,026.0000 Million + £3,750.0000 Million + £1,518.7750 Million + £5,000.0000 Million + £2,812.4990 + £3,423.7490 = £21,492.723 Million

£21,492.723 Million = £21.492723 Billion

On another way of looking at it, is in the 31 days in Jan 2024, HM Government borrowed:- £693.31364516129032258064516129032 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 2028 to 2051. All long-term borrowings, we are mortgaging our futures, but at least “We Are In It Together……

Artificial Intelligence ETF

The Legal and General Artificial Intelligence ETF is today valued at $608.5m

https://fundcentres.lgim.com/en/uk/institutional/fund-centre/ETF/Artificial-Intelligence/

Top 10 constituents (%)
Advanced Micro Devices 2.5% of the fund
NVIDIA 2.2% of the fund
Analog Devices 2.2% of the fund
Microsoft 2.1% of the fund
ASML 2.1% of the fund
Ambarella 2.0% of the fund
Cloudflare 2.0% of the fund
Autodesk 2.0% of the fund
Cognex Corporation 2.0% of the fund
Palo Alto Networks 2.0% of the fund

Courtesy if Legal and General Investment Management
Courtesy of The London Stock Exchange.

https://www.londonstockexchange.com/stock/AIAG/legal-and-general-asset-management/company-page

The Robotics and Automation ETF from Legal and General Investment Management

The Legal and General Robotics and Automation ETF is today valued at $915.8m.

https://fundcentres.lgim.com/en/uk/institutional/fund-centre/ETF/ROBO-Global-Robotics-and-Automation/

Courtesy of Legal and General Investment Management

Top 10 constituents (%)
Azenta 2.1% of the fund
Illumina 1.8% of the fund
Zebra Technologies 1.8% of the fund
Intuitive Surgical 1.8% of the fund
Teradyne 1.8% of the fund
Rockwell Automation 1.7% of the fund
Hexagon 1.7% of the fund
Kardex Group 1.7% of the fund
Novanta 1.7% of the fund
Cognex Corporation 1.7% of the fund

Courtesy of The London Stock Exchange

https://www.londonstockexchange.com/stock/ROBG/legal-and-general-asset-management/company-page

Invesco Bond Income Plus

The Invesco Bond Income Plus is a London listed investment trust.

Its objective is to provide a high level of dividend income relative to prevailing interest rates mainly through investment in bonds and other fixed-interest securities. The Company also invests in equities and other equity-like instruments consistent with the Investment Objective.

https://www.invesco.com/uk/en/investment-trusts/invesco-bond-income-plus-limited.html

Top Ten Holdings:-

Barclays PLC 9.25% 1.83% of the fund
Lloyds Banking Group 7.875% Perpetual PNC15 1.79% of the fund
Vodafone Group PLC 8% 1.48% of the fund
Aviva PLC 6.875% 1.42% of the fund
Clarios Global LP 8.5% 1.34% of the fund
Codere Finance 2 (Luxembourg) S.A 11% 1.21% of the fund
Sainsburys Bank Plc 10.5% 1.14% of the fund
Ziggo Bond Company B.V. 6% 1.12% of the fund
Petra Diamonds US$ Treasury plc 10.5% 1.11% of the fund
Legal & General Group PLC 5.625% 1.06% of the fund

https://www.londonstockexchange.com/stock/BIPS/invesco-bond-income-plus-limited/company-page

The Gresham House Energy Storage Fund

The Gresham House Energy Storage Fund plc (GRID) invests in a portfolio of utility-scale operational battery energy storage systems in Great Britain.
GRID seeks to provide shareholders with an attractive and sustainable dividend over the long term, alongside the prospect of capital growth.

https://www.londonstockexchange.com/stock/GRID/gresham-house-energy-storage-fund-plc/company-page

The Gresham House Energy Storage Fund has had a turbulent time on the stock market with rising interest rates and the cost of capital rising.

Courtesy of The London Stock Exchange

Vodafone Feb 2024 Dividend

Last week on Friday 2nd Feb, Vodafone, the the UK’s seconding telecoms giant (BT plc being the primary telecoms group) paid out its Feb 2024 dividend

https://www.vodafone.com/

€0.045 = 3.84525p a share

https://www.londonstockexchange.com/news-article/VOD/total-voting-rights/16270840

the total number of voting rights in Vodafone is 27,078,739,427

Thus:-

27,078,739,427 x £0.0384525 = £1,041,245,227.8167175

That is £1041 millions paid to shareholders = £1.041 Billion

https://www.londonstockexchange.com/stock/VOD/vodafone-group-plc/company-page

BT PLC Feb 2024 Dividend

Yesterday, BT PLC the UK’s premier telecoms group, paid out its Feb 2024 dividend

https://www.bt.com/

2.31p a share

https://www.londonstockexchange.com/news-article/BT.A/total-voting-rights/16270096

The total number of voting rights in BT Group plc on that date was 9,947,547,776

Thus:-

9,947,547,776 x £0.0231 = £229,788,353.6256

That is £229millions paid to shareholders.

https://www.londonstockexchange.com/stock/BT.A/bt-group-plc/company-page