“If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume.”

On Thur 12th April, the UK’s premier health and pharma company, Glaxo Smithkline paid its half yearly dividend.

www.gsk.com

12p per share.

https://otp.investis.com/clients/uk/GlaxoSmithKline2/rns_new/regulatory-story.aspx?cid=410&newsid=995740

the total number of voting rights in the Company is 4,958,962,323

Thus:

23p x 4,958,962,323 = £1,140,561,334.29

That is £1.14 Billion

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10042

5.5% yield.

The Multi Index 3 Fund from Legal and General.

http://i.legalandgeneral.com/consumer/investments/products-and-funds/mixed-investments/investments-productsandfunds-mixedinvestments-fund-multiindex3.jsp

It holds:-

Legal & General All Stocks Gilt Index Trust ‘I’ Inc 11.04%

Legal & General Sterling Corporate Bond Index Fund ‘L’ Inc 10.80%

Legal & General Global Inflation Linked Bond Index Fund ‘L’ Inc 10.53%

Legal & General Short Dated Sterling Corporate Bond Index Fund ‘L’ Inc 8.23%

LGIM Global Corporate Bond Fund ‘B’ Acc 8.02%

Legal & General Emerging Markets Government Bond (US$) Index Fund ‘L’ Inc 5.85%

Legal & General UK Property Fund ‘L’ Inc 4.84%

Legal & General US Index Trust ‘I’ Inc 4.68%

Legal & General High Income Trust ‘I’ Inc 4.40%

Legal & General UK Index Trust ‘L’ Inc 3.70%

The middle east accounts for 34.5% (over one third) of global oil production according to BP’s Energy Statistical review.

https://www.bp.com/content/dam/bp/en/corporate/pdf/energy-economics/statistical-review-2017/bp-statistical-review-of-world-energy-2017-full-report.pdf

That does this mean ?

Iran 5.0%
Iraq 4.8%
Kuwait 3.4%
Oman 1.1%
Qatar 2.1%
Saudi Arabia 13.4%
Syria no figure
United 4.4%
Yemen  no figure
Other Middle East 0.2%

Total = 34.5%

This 34.5% is 31,789,000 barrels of oil a day.

the value is that oil is worth about $70 a barrel, thus:-

31,789,000 barrels of oil a day x $70 = $2,225,230,000.00

That is $2.225 Billion a day.

The rules on dividends from HMRC are clear to UK tax payers.
You are allowed “only” the first £2,000 of dividends to be tax free, and then anything above is taxed. Dividend income in excess of the allowance is taxable at the following rates: 7.5% within the basic rate band; 32.5% within the higher rate band; and 38.1% on dividend income taxable at the additional rate

So what is £2,000 tax free dividends worth if you held some high quality UK stocks.

e.g the world’s leading Telecommunications corporation is BT plc. www.bt.com

https://www.btplc.com/Sharesandperformance/Dividends/Dividends.htm

In the tax year 2017-18 BT paid 2 dividends:

4.85p in 5th Feb 2018
10.55p in 4th Sept 2017

4.85p + 10.55p = 15.4p

So to have £2,000 dividend income in 2017-18 from BT you would need: £2,000 / £0.154 = 12987.01298701299 Shares in BT plc.

at today’s market price of £2.35

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10025&action=

That would mean an investment of £2.35 * 12987.01298701299 = £30519.48051948052

Thus £30,519 buying BT shares today would give an approximate income of £2,000 if all things being equal (share price steady, dividend payment steady). BT Be There.

If you wanted £2,000 income in an oil company like Royal Dutch Shell plc, what would that be ?

Shell pays out 4 dividends a year

https://www.shell.com/investors/dividend-information/historical-dividend-payments.html

It is has remained steady at US$0.47 a share which is about 33p a share.

Thus 4 dividends:-

33p+33p+33p+33p = £1.32

So to have £2,000 dividend income in 2017-18 from Royal Dutch Shell B shares you would need: £2,000 / £1.32 = 1515.151515151515 Shares in Royal Dutch Shell B plc.

at today’s market price of £23.71

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=133755

That would mean an investment of £23.71 * 1515.151515151515 = £35924.24242424242

Thus £35,924 buying shares in Royal Dutch Shell B would give today would give an approximate income of £2,000 if all things being equal (share price steady, dividend payment steady)

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 March 2018 , 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 (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-

27-Mar-2018 0 1/8% Index-Linked Treasury Gilt 2056 3 months 675.2400 Million
15-Mar-2018 1 5/8% Treasury Gilt 2028 2,864.7310 Million
06-Mar-2018 1½% Treasury Gilt 2047 2,250.0000 Million
01-Mar-2018 0¾% Treasury Gilt 2023 2,815.6600 Million

When you add the cash raised:-

∑(675.2400 Million + 2,864.7310 Million + 2,250.0000 Million + 2,815.6600 Million) =  £8605.631 Million

£8605.631 Million = £8.605631 Billion

On another way of looking at it, is in the 31 days in March, HM Government borrowed:-

£277 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 mature 2023, 2028, 2047 and 2056. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”

The Alliance Trust is a famous old UK Investment trust.

https://www.alliancetrust.co.uk/

£2.3 Billion London Listed Investment Fund

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10113&record_search=1&search_phrase=alliance

Top 20 holdings are:-

Alphabet
Microsoft
Amazon
Comcast
Charter
Communications
Baidu – ADR
United Health
Group
Oracle
Western Union
Page Group
Ryanair
Tencent
AIA
Airbus
Anthem
Novo-Nordisk
HDFC Bank
Visa
Liberty
Interactive
HCA Healthcare

Top 20 holdings make up  24.6% of the trust.

Yesterday, the world’s second largest mininig company, Rio Tinto paid out its dividend.

www.riotinto.com

The dividend was 129.43p a share.

The total number of voting rights in Rio Tinto plc is 1,329,626,900

http://otp.investis.com/clients/uk/rio_tinto1/rns/regulatory-story.aspx?cid=507&newsid=995555

Thus:-

1,329,626,900 x 129.43p a share = £1,720,936,096.67

That is £1.720 Billion paid out by Rio Tinto to its shareholders.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10071&record_search=1&search_phrase=rio

A 5% yield. Delicious.

Yesterday BP plc, one of the oil majors broke the £100bn market value.

www.bp.com

BP is a major UK company, in the same premier league as BT, the world’s leading telecommunications corporation, (www.bt.com)

The share price yesterday of BP was £5.011 a share.

The share capital of BP is 19,958,001,728 shares

https://otp.investis.com/clients/uk/bp_plc/rns/regulatory-story.aspx?cid=233&newsid=995631

Thus:

19,958,001,728 shares x £5.011 a share = £100,009,546,659.01

That is £100bn.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10022&record_search=1&search_phrase=bp

You have to stay in school. You have to. You have to go to college. You have to get your degree. Because that’s the one thing people can’t take away from you is your education. And it is worth the investment.

Yesterday, HSBC Holdings PLC paid out is quarterly dividend, of $0.21 (14.762p) a share.

www.hsbc.com

The total number of voting rights in HSBC Holdings plc is 20,053,152,822

Thus:-

20,053,152,822 x 14.762p = £2,960,246,419.58
That is £2,960 Million = £2.960 Billion

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10048&record_search=1&search_phrase=HSBC

A 5.4% yield.

The Dunedin Income Growth Investment Trust plc is 145 years old.

A £370m London Listed investment trust.

http://www.dunedinincomegrowth.co.uk/

Twenty largest equity holdings %

Royal Dutch Shell ‘B’ 4.8% of the fund
British American Tobacco 4.6% of the fund
Prudential 4.4% of the fund
Unilever 4.1% of the fund
HSBC 4.0% of the fund
GlaxoSmithKline 3.9% of the fund
AstraZeneca 3.8% of the fund
BHP Billiton 3.3% of the fund
Vodafone 3.1% of the fund
Total 3.0% of the fund
Assura 3.0% of the fund
Chesnara 2.4% of the fund
Compass 2.3% of the fund
Sage 2.3% of the fund
Standard Chartered 2.2% of the fund
Croda 2.2% of the fund
BP 2.0% of the fund
Novo-Nordisk 1.9% of the fund
Unibail-Rodamco 1.9% of the fund
Close Brothers 1.9% of the fund

Total 61.1% are the 20 top equity holdings above.

Ten largest fixed income holdings %
HBOS Cap Funding 6.461% 9.2% of the fund
SSE 3.875% 7.7% of the fund
BHP Billiton Finance 6.5% 22/10/77 6.2% of the fund
Citigroup 5.125% 12/12/18 5.9% of the fund
Rabobank Cap Funding Trust 5.556% 5.7% of the fund
Firstgroup 6.125% 18/01/19 5.6% of the fund
Barclays Bank 8.25% 29/12/49 4.4% of the fund
Daimler Intl Finance 3.5% 06/06/19 4.4% of the fund
Heathrow Funding 6% 20/03/20 4.3% of the fund
ASIF III Jersey 5% 18/12/18 4.0% of the fund
http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10166&record_search=1&search_phrase=dunedin

On Thursday last week (Thur 29th March 2018) BP plc paid out its quarterly dividend.

www.bp.com

One of the largest oil companies in the world.

The dividend was 7.1691p per share.

The total number of voting rights in BP p.l.c. is 19,926,859,767

https://otp.investis.com/clients/uk/bp_plc/rns/regulatory-story.aspx?cid=233&newsid=983623

Thus:

19,926,859,767 x £0.071691 = £1,428,576,503.56

That is £1.428 billion.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10022&record_search=1&search_phrase=BP

That is a 6% yield. Delicious

Statoil, Norway’s state oil company has become  Equinor.

www.statoil.com

The move from fossil fuels to an energy company

On Monday 26th March, Royal Dutch Shell paid its quarterly dividend to its shareholders:

www.shell.com

it was:- 33.91p a share:-

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=133655

Shell A

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=133755

Shell B

Now, 33.91p to shareholders has cost Shell:-

Royal Dutch Shell plc’s capital consists of 4,597,136,050 A shares and 3,745,486,731 B shares, each with equal voting rights. Royal Dutch Shell plc holds no ordinary shares in Treasury.

The total number of A shares and B shares in issue is 8,342,622,781

https://irssl.euroinvestor.com/asp/ir/IRM_Shell/ssl2017/NewsRead.aspx?storyid=13830315&ishtml=1

8,342,622,781 x £0.3391 = £2,828,983,385.04

That is £2.828 Billion. Delicious.

https://www.youtube.com/watch?v=3zcKLJ8dzgU

ISA Selection, a broad and diverse range of funds are from Legal & General PLC

https://www.legalandgeneral.com/investments/products-and-funds/

Multi-Index 3

http://i.legalandgeneral.com/consumer/investments/products-and-funds/mixed-investments/investments-productsandfunds-mixedinvestments-fund-multiindex3.jsp

Multi-Index 4

http://i.legalandgeneral.com/consumer/investments/products-and-funds/mixed-investments/investments-productsandfunds-mixedinvestments-fund-multiindex4.jsp

Multi-Index 5

http://i.legalandgeneral.com/consumer/investments/products-and-funds/mixed-investments/investments-productsandfunds-mixedinvestments-fund-multiindex5.jsp

Multi-Index 6

http://i.legalandgeneral.com/consumer/investments/products-and-funds/mixed-investments/investments-productsandfunds-mixedinvestments-fund-multiindex6.jsp

Multi-Index 7

http://i.legalandgeneral.com/consumer/investments/products-and-funds/mixed-investments/investments-productsandfunds-mixedinvestments-fund-multiindex7.jsp

Global Technology Index

http://i.legalandgeneral.com/consumer/investments/products-and-funds/index-tracker/investments-productsandfunds-indextracker-fund-globaltech.jsp
Global 100 Index Trust
http://i.legalandgeneral.com/consumer/investments/products-and-funds/index-tracker/investments-productsandfunds-indextracker-fund-global100.jsp L&G Asian Income Trust

http://i.legalandgeneral.com/consumer/investments/products-and-funds/actively-managed/equity/investments-productsandfunds-activelymanaged-equity-fund-asianincome.jsp
L&G Worldwide Trust

http://i.legalandgeneral.com/consumer/investments/products-and-funds/mixed-investments/investments-productsandfunds-mixedinvestments-fund-worldwide.jsp

Emerging Markets Index Fund

http://i.legalandgeneral.com/consumer/investments/products-and-funds/index-tracker/investments-productsandfunds-indextracker-fund-globalemergingmarkets.jsp

High Income Trust

http://i.legalandgeneral.com/consumer/investments/products-and-funds/actively-managed/income/investments-productsandfunds-activelymanaged-income-fund-highincome.jsp

Distribution Trust

http://i.legalandgeneral.com/consumer/investments/products-and-funds/mixed-investments/investments-productsandfunds-mixedinvestments-fund-distribution.jsp

The JPMorgan Russian Securities Investment Trust is a £275m London Listed Investment Trust.

https://am.jpmorgan.com/gb/en/asset-management/gim/per/products/d/jpmorgan-russian-securities-plc-ordinary-shares-gb0032164732?gclid=EAIaIQobChMI7aCNsfHN2QIVhrftCh0noQ6TEAAYASAAEgL6tvD_BwE

Top 10 Holdings:-

Sberbank of Russia Financials 18.3% of the fund
Gazprom ADR Energy 14.7% of the fund
Lukoil ADR Energy 8.8% of the fund
Rosneft GDR Energy 6.1% of the fund
Novatek GDR Energy 6.0% of the fund
Norilsk Nickel ADR Materials 5.3%% of the fund
Tatneft including ADR Energy 4.9% of the fund
ALROSA Materials 2.7% of the fund
Polyus GDR Materials 2.2% of the fund
Novolipetsk Iron & Steel GDS Materials 2.1% of the fund

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=52883

3.9% yield.

http://www.berkshirehathaway.com/letters/2017ltr.pdf

The investment company of Warren Buffett

“

To the Shareholders of Berkshire Hathaway Inc.:

Berkshire’s gain in net worth during 2017 was $65.3 billion, which increased the per-share book value of

both our Class A and Class B stock by 23%. Over the last 53 years (that is, since present management took over), pershare

book value has grown from $19 to $211,750, a rate of 19.1% compounded annually.*

The format of that opening paragraph has been standard for 30 years. But 2017 was far from standard: A

large portion of our gain did not come from anything we accomplished at Berkshire.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s

operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.

(Details of Berkshire’s tax-related gain appear on page K-32 and pages K-89 – K-90.)

”

www.amazon.com

The internet retailing giant.

https://www.nasdaq.com/symbol/amzn

Its market capitalisation is now over $650bn dollars.

https://www.youtube.com/watch?v=0rMG5Ve1Ylc

How many millionaires do you know who have become wealthy by investing in savings accounts…. (A quote from Robert Allen)

The reality is that cash and bank deposits are low risk and fine for near term spending requirements and emergency funds but they won’t build wealth over long periods of time.. Despite periodic setbacks (1929 Crash, 1987 Crash, 2008 Global Financial Crisis), shares and other growth assets provide much higher returns over the long term than cash and bank deposits.

AEW UK Long Lease REIT aims to offer investors a secure, diversified and inflation-linked income return, whilst at least maintaining capital values in real terms, through exposure to alternative and specialist real estate sectors in the UK.

http://www.aewukllreit.com/

It currently holds 11 real estate assets:-

http://www.aewukllreit.com/properties/property-portfolio/all-properties

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=54582471&action=

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 Feb 2018 , 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” 2 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-

22-Feb-2018 0 1/8% Index-linked Treasury Gilt 2036 3 months £950.0000 Million
15-Feb-2018 1¾% Treasury Gilt 2057 £2,562.6800 Million

∑(£950.0000 Million + £2,562.6800 Million) =  £3512.68 Million
Million

£3512.68 Million  = £3.51268 Billion

On another way of looking at it, is in the 28 days in Feb, HM Government borrowed:-

£125 million each day for the 28 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 2036 and 2057. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”

On Friday 2nd Feb this month, Vodafone PLC paid out is Feb Dividend.

www.vodafone.com

It was €0.0484 a share which equates to £0.0423 a share.

The total number of voting rights in Vodafone is 26,674,714,037

http://tools.eurolandir.com/tools/Pressreleases/GetPressRelease/?ID=3425660&lang=en-GB&companycode=uk-vod&v=

Thus:

26,674,714,037 x £0.0423 = £1,128,340,403.77

The dividend paid out by Vodafone cost £1.128 Billion

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10097

Oer 6% yield

6mins and 22 seconds. True Words of Investment Potential

Today, UK Greencoat UK Wind paid the Feb dividend.

http://www.greencoat-ukwind.com/

It has paid out 1.6225p per share.

The total voting rights are 1,028,514,652

http://otp.investis.com/clients/uk/greencoat/rns/regulatory-story.aspx?cid=2184&newsid=945357

What was the cost of the dividend ?

1,028,514,652 x 1.6225p = £16,687,650.23

That is £16.6m

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=7013076&action=

5.3% Yield

Verizon Communications.

www.verizon.com

Formed from the merger of Nynex and Bell Atlantic, It also owns Verizon Wireless which itself was formed from the mergers of Vodafone-Airtouch’s US Operations with Verizon Wireless US Operations and GTE.

https://www.nasdaq.com/symbol/vz

The market capitalisation is now $200bn

Exxon Mobil is one of the largest energy companies

www.exxonmobil.com

It trades under the ticker symbol XOM

The market capitalisation (value) of Exxon Mobil is about $350 Billion

https://ycharts.com/companies/XOM/market_cap

It is still Smaller than Amazon.com

https://ycharts.com/companies/AMZN/market_cap

The UK pays out per year £46bn a year on Debt Interest.

That is a huge amount of money, interest on our National Debt. Money paid to our creditors, that is more than the UK Defence Budget

https://www.youtube.com/watch?v=Jft-Mnm7OD8

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 January 2018 , 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 (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-

23-Jan-2018 0 1/8% Index-linked Treasury Gilt 2026 3 months £1,000.0000 Million
18-Jan-2018 0¾% Treasury Gilt 2023 £2,500.0000 Million
11-Jan-2018 1¾% Treasury Gilt 2037 £2,250.0000 Million
09-Jan-2018 1¼% Treasury Gilt 2027 £2,587.4970 Million
When you add the cash raised:-

∑(£1,000.0000 Million + £2,500.0000 Million + £2,250.0000 Million + £2,587.4970 Million ) =  £8337.497 Million

£8337.497 Million = £8337.497 Billion

On another way of looking at it, is in the 31 days in January, HM Government borrowed:-

£268.9 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 mature 2023, 2026, 2027 and 2037. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”

Apple is a huge company.

www.apple.com

It’s value in terms in Market Capitalisation is huge:-

https://ycharts.com/companies/AAPL/market_cap

$872 Billion.

A great quote:

http://www.bbc.co.uk/news/business-42110539

Following the “Melling Scam” that has caught poor Christine out and how the people of Ambridge got scammed, what’s the deal with Melling Equestrian Investments?

It was run by a very charming friend-of-a-relative-of-a-friend of Justin Elliott. He was smooth and dapper and was offering very high returns of about 12% for investments into what he described as a world class racecourse for top quality horses in Costa Rica

http://www.bbc.co.uk/blogs/thearchers/entries/efe1f330-89af-44d6-b8fb-fef46eac5cf6

12% return in a climate on 0.5% interest rates…..when something looks TOO GOOD TO BE TRUE, IT USUALLY IS !!!!

Today the Foreign & Colonial Investment Trust paid out its Feb 2018 dividend of 2.7p a share.

https://www.fandc.com/uk/private-investors/investment-trusts/global-trusts/foreign-and-colonial-investment-trust/

The total number of voting rights that can be exercised in the Company is 542,180,712

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/FRCL/13482101.html

Thus:

542,180,712 x £0.027 = £14,638,879.22

That is £14.638 Million

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10192&action=

1.5% yield.

UK Mortgages PLC pays out today its Jan 2018 (Quarterly) dividend of 1.5p a share.

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/UKML/13493790.html

250m shars in issue

https://twentyfouram.com/funds/uk-mortgages-fund/

Thus

250,000,000 x £0.015 = £3,750,000

£3.75m paid today to shareholders.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=41993839&action=

6% yield.

This is a great sector:-

http://www.bbc.co.uk/news/business-42131742

The news of Biotech and Pharma jobs can only a good thing, the UK is a world leader with names like Astra Zeneca, GlaxoSmithKline.

One can see huge investment opportunities here.
Look at this fund:-

http://i.legalandgeneral.com/consumer/investments/products-and-funds/index-tracker/investments-productsandfunds-indextracker-fund-globalhealthandpharm.jsp

The Legal and General Heath and Pharmaceuticals Index Tracker.

The growth in amazing.

http://www.fundslibrary.co.uk/fundslibrary.dataretrieval/documents.aspx?user=landgdoc&type=custom_field.www_landg_co_uk.factsheet_UTD&sedol=0195553

The investments:-

Johnson & Johnson Pharmaceuticals & Biotechnology 7.73% of the fund
Pfizer Pharmaceuticals & Biotechnology 4.65%% of the fund
Novartis AG Pharmaceuticals & Biotechnology 4.45%% of the fund
UnitedHealth Group Health Care Equipment & Services 4.14%% of the fund
Roche Holding AG Part. Cert. Pharmaceuticals & Biotechnology 3.98%% of the fund
Merck & Co. Pharmaceuticals & Biotechnology 3.86%% of the fund
AbbVie Inc Pharmaceuticals & Biotechnology 3.13%% of the fund
Amgen Pharmaceuticals & Biotechnology 3.02%% of the fund
Celgene Corp. Pharmaceuticals & Biotechnology 2.49%% of the fund
Sanofi Pharmaceuticals & Biotechnology 2.38%% of the fund

Top ten investments make up 39.83% of the fund.

We saw last week that the US Federal Government shut down due to both political parties failing to agree on the Federal Budget.

The USA spends more money than it earns from taxes.

The debt today:

$20.6 Trillion.

http://www.usdebtclock.org/

That equates to $63,000 dollars per US Citizen.

The UK’s worth grew by the largest amount on record to reach £9.8tn at the end of last year, boosted by land value, which has grown “more than fivefold” since 1995, according to the office of national statistics.

www.ons.gov.uk

Combining the UK’s total assets, the Office for National Statistics (ONS) found that the UK’s value increased by 8.9pc or £803bn between 2015 and 2016. The country’s net worth has risen steadily since 2012, following a course in line with pre-financial crisis conditions. Land was found to be the UK’s single most valuable asset, making up more than half of the UK’s total net worth, according to the annual ONS report, an estimate of the market value of UK assets is known as the national balance sheet.

Non-financial assets increased by £477bn in 2016, with £280bn of that growth coming from rising land value. Land is worth £5.0tn, equivalent to 51pc of the total value of the UK.

However, the growth of land value slowed last year to a 5.9pc increase, compared with rises of 15pc in 2014 and 10pc in 2015.

The ONS noted that land values remain highly dependent on house prices. In 2008 land lost 23pc of its value, some 23pc, as the housing market tumbled. For several years ahead of the crash, land as an asset grew by 18.3pc in value.

The Government was the least valuable sector in the UK, with a value of negative £845bn. This was driven by central government’s massive debt. It was £1.2tn in the red, contrasting with local government which was £356bn in the black.

Since 1995 the value of land has increased more than fivefold, making it our most valuable asset. At £5tn, it accounts for just over half of the total net worth of the UK at end-2016.

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 2017 , 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” 3 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-

13-Dec-2017 0 1/8% Index-linked Treasury Gilt 2036 3 months £800.0000 Million
07-Dec-2017 1½% Treasury Gilt 2047 £2,276.5000 Million
05-Dec-2017 0¾% Treasury Gilt 2023 £2,750.0000 Million

When you add the cash raised:-

∑(£800.0000 Million + £2,276.5000 Million + £2,750.0000 Million) =  £5826.5 Million
Million

£5826.5 Million  = £5.8265 Billion

On another way of looking at it, is in the 31 days in December, HM Government borrowed:-

£187 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 mature 2023, 2036 and 2047. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”

Cash is king. Cash is liquidity, but actually it can be a very value eroding investment, as inflation (rising prices) can devalue and erode the purchasing power of cash

A real example of the risk of holding cash in an pension fund is here:-

http://factsheets.financialexpress.net/SLEFL/EUY4_RX.pdf

The Standard Life L&G Cash Pension Fund

The table below shows the fall in value of the fund. Grim reading.

The Vanguard U.S. Government Bond Index Fund is an fixed income index fund

https://www.vanguardinvestor.co.uk/investments/vanguard-us-government-bond-index-fund-pound-sterling-hedged-accumulation-shares

Total assets of £366.6 Million
Holds 348 Bonds

GIVE me a one-handed economist,” demanded a frustrated American president, Harry Truman,  “All my economists say, ‘on the one hand…on the other’

http://www.economist.com/node/2208841

The Aberdeen New India Investment Trust PLC is a London listed £270 Million investment trust.

http://www.aberdeen-newindia.co.uk/itnewindia/

The objective, to achieve long-term capital appreciation by investing in companies which are incorporated in India or which derive significant revenue or profit from India, with dividend yield from the company being of secondary importance.

Housing Development Finance Corp 9.7% of the fund
Infosys Ltd. 6.9% of the fund
Tata Consultancy Services 6.6% of the fund
Piramal Healthcare Ltd. 5.3% of the fund
ITC, Ltd. 5.2% of the fund
Kotak Mahindra Bank 4.6% of the fund
Grasim Industries Ltd 4.0% of the fund
Hindustan Unilever Ltd. 3.9% of the fund
Godrej Consumer Products 3.6% of the fund
Kansai Nerolac Paints Ltd. 3.5% of the fund

Total 53.1%

Interesting fact:-

Price: 455.50
Net Asset Value: 513.57

Premium/-Discount: -11.31

thus you are buying assets of £5.13 for the price of £4.55

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=50888&action=

Their is massive speculation on the deal, of AT&T buying Time Warner

http://www.bbc.co.uk/news/business-42058846

The world’s leading telecoms and media group is BT plc

www.bt.com

Close behind is AT&T.

www.att.com

The revenues are huge:

https://www.stock-analysis-on.net/NYSE/Company/ATT-Inc/Analysis/Revenues

163,786 million.

That is $163 Billion.

The FTSE Small Cap Index is this:

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=50098&record_search=1&search_phrase=smx

And these are the companies:-

AAIF Aberdeen Asian Income Fund
AAS Aberdeen Asian Smaller Companies Investment Trust
ABD Aberdeen New Dawn Investment Trust
ADIG Aberdeen Diversified Income And Growth Trust
AEFS Alcentra European Floating Rate Income Fund Red
AEP Anglo-Eastern Plantations
ALM Allied Minds
ANII Aberdeen New India Investment Trust Ord 25p
AO. AO World
APAX Apax Global Alpha
ARW Arrow Global Group
ASIT Aberforth Split Level Income Trust Ord 1p
ATR Asian Total Return Investment Company
ATS Artemis Alpha Trust
ATT Allianz Technology Trust Ord 25p
AVON Avon Rubber
BBGI BBGI Sicav S.A.
BBH Bb Healthcare Trust Red Ord 1p
BEE Baring Emerging Europe
BGFD Baillie Gifford Japan Trust (the)
BGS Baillie Gifford Shin Nippon
BHGG BH Global Limited GBP
BHMG BH Macro Limited GBP
BIFF Biffa
BIOG Biotech Gwth
BMY Bloomsbury Publishing
BOOT Boot Henry **see BHY**
BOWL Hollywood Bowl Group
BRFI Blackrock Frontiers Investment Trust
BRGE Blackrock Greater Europe Inv Trust
BRLA BlackRock Latin Am
BRNA BlackRock North Amer
BRSC BlackRock Smaller Companies Trust
BRWM Blackrock World Mining Trust
BSIF Bluefield Solar Income Fund
BUT Brunner Investment Trust (the)
CAL Capital & Regional
CAR Carclo
CARR Carrs Group
CGT Capital Gearing Trust
CHG Chemring Group
CIR Circassia Pharmaceuticals
CLG Clipper Logistics
CLIG City of London Investment Group
CLLN Carillion
CMBN Cambian Group
CMCX CMC Markets
CMHY City Merchants High Yield Trust
CMS Communisis
CNCT Connect Group
COST Costain Group
CPR Carpetright
CREI Custodian Reit
CSH W Resources (formerly Caspian Holdings )
CSN Chesnara
CSRT Consort Medical
CTR Charles Taylor
CWD Countrywide
DEB Debenhams
DFS DFS Furniture
DIA Dialight
DIG Dunedin Income Growth Investment Trust
DIGS GCP Student Living
DIVI Diverse Income Trust (The)
DLAR De La Rue
DNDL Dunedin Smaller Companies Investment Trust
DPEU Dp Eurasia N.v. Ord Eur0.12 Di Wi
DSCV Discoverie Group Ord 5p
DVO Devro
EFM Edinburgh Dragon Trust
EGL Ecofin Global Utilities & Infrastructure Trust
EIG EI Group
ENQ EnQuest
EPG EP Global Opportunities Trust
EPIC Ediston Property Investment Company
ESP Empiric Student Property
EUT European Investment Trust
EWI Edinburgh Worldwide Investment Trust
FAN Volution Group
FAS Fidelity Asian Values
FCI F&C Capital & Income Investment Trust
FCIF Funding Circle SME Income Fund
FCRE F&C UK Real Estate Investments
FCS F&C Global Smaller Companies
FDL Findel
FEET Fundsmith Emerging Equities Trust Ord 1p
FENR Fenner
FJV Fidelity Japanese Values
FORT Forterra
FOUR 4imprint Group
FOXT Foxtons Group
FPEO F&C Private Equity Trust
FSFL Foresight Solar Fund
FSTA Fuller Smith & Turner
FSV Fidelity Special Values
GABI GCP Asset Backed Inc Fund
GAW Games Workshop Group
GDWN Goodwin
GEMD Gem Diamonds
GHG Georgia Healthcare Group
GLE Gleeson (M J) Group
GMS Gulf Marine Services
GOCO Gocompare.com Group
GYM The Gym Group
HAN Hansa Trust
HAST Henderson Alternative Strategies Trust
HDIV Henderson Diversified Income
HEAD Headlam Group
HEFT Henderson European Focus Trust
HFEL Henderson Far East Income
HFG Hilton Food Group
HGT HG Capital Trust
HHI Henderson High Income Trust
HINT Henderson International Income Trust
HLCL Helical Bar
HMSF Highbridge Multi-strategy Fund Limited Ord Npv Gbp
HNE Henderson Eurotrust
HNT Huntsworth
HRG Hogg Robinson Group
HSD Hansard Global
HSL Henderson Smaller Companies Investment Trust
HSS HSS Hire Grp
HSW Hostelworld Group
IAT Invesco Asia Trust
IBT International Biotechnology Trust
ICGT ICG Enterprise Trust
IEM Impax Environmental Markets
IIT Independent Investment Trust
IPF International Personal Finance
IPU Invesco Perpetual Uk Smaller Companies Trust
IRV Interserve
ITE ITE Group
IVI Invesco Income Growth Trust
JAI JPMorgan Asian Investment Trust
JCH JPMorgan Claverhouse Investment Trust
JEMI JPMorgan Gbl Emerging Mkts Inc Tst
JESC JPMorgan European Smaller Companies Trust
JETG JPMorgan European Investment Trust Growth
JETI JPMorgan European Investment Trust Income
JFJ JPMorgan Japanese Investment Trust
JLEN John Laing Environmental Assets Group
JMC JPMorgan Chinese Investment Trust
JMF JPMorgan Mid Cap Investment Trust
JMI JPMorgan Smaller Companies Investment Trust
JPGI JPMorgan Global Growth Income
JPS JPMorgan Japanese Smaller Companies Investment Trust
JRS JPMorgan Russian Securities
JUS Jupiter US Smaller Companies
JUSC JPMorgan US Smaller Companies IT
KCOM KCOM Group
KIT Keystone Investment Trust
KLR Keller Group
KMR Kenmare Resources
KNOS Kainos Group
LAM Lamprell
LBOW LCG-Longbow Inv
LIO Liontrust Asset Management
LMI Lonmin
LOOK Lookers
LRD Laird
LSL LSL Property Services
LTI Lindsell Train Investment Trust (the)
LUCE Luceco
LWB Low & Bonar
LWDB Law Debenture Corporation (the)
LWI Lowland Investment Company
LXI Lxi Reit Ord 1p
MAJE Majedie Investments
MCB McBride
MCKS McKay Securities
MCLS Mccoll’s Retail Group
MCP Martin Currie Pacific Trust
MCT Middlefield Canadian INC PCC
MER Mears Group
MGNS Morgan Sindall
MGP Medica Group
MNP Martin Currie Global Portfolio Inv.Trust
MNZS Menzies (John)
MOSB Moss Bros Group
MOTR Motorpoint Group
MPO Macau Property Opportunities Fund
MRCH Merchants Trust (the)
MTC Mothercare
MTE Montanaro European Smaller Co’s Trust
MTU Montanaro Uk Smaller Companies Investment Trust
MUT Murray Income Trust
MXF MedicX Fund
NAIT North American Income Trust (The)
NANO Nanoco Group
NAS North Atlantic Smaller Companies Investment Trust
NCC NCC Group
NCYF CQS New City High Yield Fund
NESF Nextenergy Solar Fund
NTG Northgate
NXR Norcros
OPHR Ophir Energy
OTB On The Beach Group
OXB Oxford BioMedica
OXIG Oxford Instruments
PAC Pacific Assets Trust
PCFT Polar Capital Global Financials Trust
PCGH Polar Capital Global Healthcare Grwth & Inc Tr
PCTN Picton Property Income
PDG Pendragon
PDL Petra Diamonds
PFD Premier Foods
PHI Pacific Horizon Investment Trust
PHP Primary Health Properties
PHTM Photo-Me International
PIN Pantheon International
PMO Premier Oil
POG Petropavlovsk
PRTC PureTech Health
PRV Porvair
PSDL Phoenix Spree Deutschland
PURE PureCircle
RCDO Ricardo
RDL Ranger Direct Lending Fund
RECI Real Estate Credit Investments
RGL Regional Reit Limited
RICA Ruffer Investment Company Limited
RNO Renold
RPS RPS Group
RUS Raven Russia
RWA Robert Walters
SCAM Scottish American Investment Company
SCF Schroder Income Growth Fund
SCP Schroder UK Mid & Small Cap Fund
SDL SDL
SDP Schroder Asiapacific Fund
SDU Schroder Uk Growth Fund
SDY Speedy Hire
SEC Strategic Equity Cap.
SERE Schroder European Real Estate Investment Trust
SERV Servelec Group
SFR Severfield
SIA SOCO International
SJG Schroder Japan Growth Fund
SLET Standard Life Equity Income Trust
SLI Standard Life Investment Property Inc Trust
SLPE Standard Life Private Equity Trust Ord 0.2p
SLS Standard Life UK Smaller Companies Trust
SMIF Twentyfour Select Monthly Income Fund
SOI Schroder Orient
SPO Sportech
SPT Spirent Communications
SQN Sqn Asset Finance Income Fund
SQNX SQN Asset Finance Income Fund
SRE Sirius Real Estate
SREI Schroder Real Estate IT
SST Scottish Oriental Smaller Companies Trust (the)
STCK Stock Spirits Group
STHR SThree
STS Securities Trust Of Scotland
STVG STV Group
SUS S & U
SWEF Starwood European Real Est Fin
TET Treatt
TFIF Twentyfour Income Fund
THRG BlackRockThrogmorton Trust
THRL Target Healthcare Reit
TIGT Troy Income & Growth Trust
TNI Trinity Mirror
TOWN Town Centre Securities
TPT Topps Tiles
TRG TR European Growth Trust
TRI Trifast
TRS Tarsus
TTG TT Electronics
TYMN Tyman
UAI U and I Group
UEM Utilico Emerging Markets
UPGS UP Global Sourcing Holdings
VIN Value And Income Trust
VOF VinaCapital Vietnam Opp. Fund
VP. VP
VSL VPC Specialty Lending Investments
WIN Wincanton
WPC Witan Pacific Investment Trust
XAF Xafinity
XAR Xaar
XPP XP Power
ZTF Zotefoams

The four most dangerous words in investing: ‘this time it’s different.’

– Sir John Templeton

This is one of the most important quotes in investment history. Unfortunately, it’s often misunderstood. Of course, things are always different from one era to the next, but what does not change from era to era is human behaviour and the formation of market extremes.

In the past decade and a half we have had several great examples of investment sector extremes. Remember the gurus that explained the dot-com years by stating it was a new era and the old metrics of valuation did not apply? How about the housing boom? Recall the experts in late 2005 stressing why this time was different, and that the record shattering valuations weren’t a problem?

Identifying extremes is easy in retrospect, but for most investors it’s very difficult in the moment. That’s because the natural human tendency is to chase performance, and the brighter the glow, the more average investors clamour to buy.

Here are a few things to consider regarding equity sector extremes. Timespan is important, extremes take years to develop; a year, two, or even three is typically not enough. The thing to look for is outperformance above the broad market for more than three years. Sectors in a classic bubble formation have usually outperformed for more than four years.

Both the dot-com and housing sectors maintained outperformance for just over five years. For the average investor outperformance for three or four years is an almost irresistible buy, yet history clearly shows us that performance extremes do not last, and when they fail the damage to investors is usually substantial.

The Royal Bank of Scotland.

www.rbs.com

Reading the half year results from RBS makes intereting reading:-

https://investors.rbs.com/~/media/Files/R/RBS-IR/results-center/rbs-group-announcement-04-08-2017.pdf

Total assets of £782,654 Million (£782 Billion)

which is made up of:-

Cash and balances at central banks £86,807m
Net loans and advances to banks £20,685m
Net loans and advances to customers £326,059m
Reverse repurchase agreements and stock borrowing £40,030m
Debt securities and equity shares £86,687m
Derivatives £193,531m
Other assets £28,855m

Total £782,654 Million

That is about 50% of the annual GDP of the UK economy

Cisco is the world leading networking infrastructure supplier.

www.cisco.com

The financials of Cisco are amazing:-

https://s2.q4cdn.com/230918913/files/doc_financials/annual/2017/View-Printable-2017-Annual-Report.pdf

Look at the cash / near cash on page 68:-

Cash and cash equivalents  $ 11,708 million
Investments $ 58,784 million

That is $70,492 Million = $70 Billion

Borrowings (Debt)

Three-month LIBOR plus 0.60% February 21, 2018 $1,000m
Three-month LIBOR plus 0.31% June 15, 2018 $900m
Three-month LIBOR plus 0.50% March 1, 2019 $500m
Three-month LIBOR plus 0.34% September 20, 2019 $500m

Fixed-rate notes:
1.40% February 28, 2018 $1,250m
1.65% June 15, 2018 $1,600m
4.95% February 15, 2019 $2,000m
1.60% February 28, 2019 $1,000m
2.125% March 1, 2019 $1,750m
1.40% September 20, 2019 $1,500m
4.45% January 15, 2020 $2,500m
2.45% June 15, 2020 $1,500m
2.20% February 28, 2021 $2,500m
2.90% March 4, 2021 $500m
1.85% September 20, 2021 $500m
3.00% June 15, 2022 $500m
2.60% February 28, 2023 $500m
2.20% September 20, 2023 $750m
3.625% March 4, 2024 $1,000m
3.50% June 15, 2025 $500m
2.95% February 28, 2026 %750m
2.50% September 20, 2026 $1,500m
5.90% February 15, 2039 $2,000m
5.50% January 15, 2040 $2,000m

Total $ 30,500m = $30.5 Billion

The Halifax (www.halifax.co.uk) produced a very interesting report on the total value of UK residential housing: £6,015 Billion

https://static.halifax.co.uk/assets/pdf/media-centre/press-releases/2017-11-29-total-value-of-housing-stock-6trillion-press-release.pdf

The total value of all the houses in the UK has passed the £6tn mark for the first time, according to The Halifax which also highlights the vast concentration of property wealth in London and the south-east. The value of homes in London is now more than all the houses in Scotland, Wales and the north of England combined. The research also reveals how property values in the south have escalated since the financial crash of 2007-08, despite incomes remaining relatively flat. In 2007 Halifax estimated that the UK’s housing stock was worth a total of £4,077bn, but over the past 10 years the figure has risen to £6.015 Trillion

To put the £6tn figure into context, it is nearly four times the size of the UK’s national debt, which is currently just over £1.8tn, and three times our total national output in 2016 (around £2tn). But even if every house in Britain was sold, the money raised would pay off less than half of the US’s national debt.

The big rises in the value of the UK’s housing stock have mostly taken place in the south. In 2007, the value of housing in the north-east was estimated at £114bn, but today it stands at £136bn – an increase of £22bn.

But in London, houses have jumped in value from £718bn in 2007 to £1,338bn today, a gain of £620bn. Over the same period the value of properties in Northern Ireland actually fell.

In total, 68% of private property wealth, amounting to £3.8tn, is concentrated in the south, up from 62% in 2007. The stock of privately owned homes in Britain also increased in number from 21.5m to 23.4m. Among the biggest gainers of property wealth in the south have been landlords and second home owners. Halifax said that while the average rate of owner-occupation in the UK was 63%, it stands at just 48% in London.

The vast majority of housing wealth is owned by the over-55s. Halifax estimated that under 35-year-olds own just 3.3% of the UK’s net property wealth, while the over-55s hold 63.3%.

Aviva plc paid out its November dividend on the 17th Nov 2017

www.aviva.com

It paid out 8.4p a share.

http://otp.investis.com/clients/uk/avivaplc/rns/regulatory-story.aspx?cid=759&newsid=945856

The total number of voting rights in Aviva plc is 4,011,205,623

So what did the 8.4p dividend cost Aviva PLC ?

Thus:

4,011,205,623 x £0.084 = £336,941,272.33

That is £336m.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10028&record_search=1&search_phrase=aviva

That is a yield of over 4.5%.

Yesterday it was announced that Royal Dutch Shell was buying the UK’s First Utility

www.shell.com

The news:-

https://www.first-utility.com/press/First-Utility-agrees-sale-of-business-to-Shell

Shell’s purchase of First Utility means, that Shell has aquired 850,000 domestic gas, electric and telecoms customers

The figures for the deal are not public but show’s how Shell is transforming itself it a domestic energy supplier.

850,000 customers, say each are paying £100 a month for Gas and Electric, imagine the new cash flow for Shell:-

£100 a month x 850,000 customers = £85,000,000 a month for Shell, that is £85m cash income a month

Today, BP plc pays out it’s December quarterly dividend.

www.bp.com

A dividend of $0.10 a share

http://otp.investis.com/clients/uk/bp_plc/rns/regulatory-story.aspx?cid=233&newsid=956941

$0.10 a share =  7.4435 pence per share.

Now, the total number of voting rights in BP p.l.c. is 19,792,111,166

http://otp.investis.com/clients/uk/bp_plc/rns/regulatory-story.aspx?cid=233&newsid=954328

Thus:-

19,792,111,166 shares x 7.4435 pence per share = £1,473,225,794.64

That is £1.473 Billion in cash paid to shareholders.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10022&record_search=1&search_phrase=bp

That is 6.1% yield.

Tomorrow, Wednesday 20th December Royal Dutch Shell pays out its quarterly dividend.

www.shell.com

RDSA Royal Dutch Shell A FTSE 100 $0.47 (35.02p)
RDSB Royal Dutch Shell B FTSE 100 $0.47 (35.02p)

https://irssl.euroinvestor.com/asp/ir/IRM_Shell/ssl2017/NewsRead.aspx?storyid=13739543&ishtml=1

Royal Dutch Shell plc’s capital consists of 4,544,414,617 A shares and 3,745,486,731 B shares, each with equal voting rights. Royal Dutch Shell plc holds no ordinary shares in Treasury.

The total number of A shares and B shares in issue is 8,289,901,348

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=133655

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=133755

Now, Shell is paying out 35.02p a share thus:

The total number of A shares and B shares in issue is 8,289,901,348 x 35.02p = £2,903,123,452.07

That is £2.903 Billion. That is a yield of 5.9%

https://www.youtube.com/watch?v=POz98tF7ovc

www.bt.com

The global leader in Telecommunications

The AIM 100 Index is the 100 companies listed in the London Alternative Market.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=113101&record_search=1&search_phrase=aim 100

The growth in the past 12months is incredible. 20% growth, see the chart below.

The companies are:-

4d pharma PLC
Abcam PLC
accesso Technology Group PLC
Advanced Medical Solutions …
Alliance Pharma PLC
Amerisur Resources PLC
Andrews Sykes Group PLC
Applegreen PLC
Arbuthnot Banking Group PLC
ASOS PLC
Benchmark Holdings PLC
Blue Prism Group PLC
boohoo.com PLC
Breedon Group PLC
Brooks Macdonald Group PLC
Burford Capital Ltd
Camellia PLC
CareTech Holdings PLC
Central Asia Metals PLC
Clinigen Group PLC
Conviviality PLC
Craneware PLC
Crystal Amber Fund Ltd
CVS Group PLC
Dart Group PLC
dotDigital Group PLC
Eco Animal Health Group PLC
Eddie Stobart Logistics PLC
EMIS Group PLC
Falcon Oil & Gas Ltd
Faroe Petroleum PLC
Faron Pharmaceuticals Oy
Fevertree Drinks PLC
First Derivatives PLC
Frontier Developments PLC
Gamma Communications PLC
GB Group PLC
Gooch & Housego PLC
Greencoat Renewables PLC
Highland Gold Mining Ltd
Horizon Discovery Group PLC
Hotel Chocolat Group PLC
Hurricane Energy PLC
Hutchison China Meditech Ltd
IDOX PLC
IG Design Group PLC
Impellam Group PLC
Iomart Group PLC
IQE PLC
James Halstead PLC
Johnson Service Group PLC
Joules Group PLC
Keywords Studios PLC
Learning Technologies Group…
Majestic Wine PLC
Manx Telecom PLC
Mattioli Woods PLC
M&C Saatchi PLC
Midwich Group PLC
Mortgage Advice Bureau (Hol…
M P Evans Group PLC
Mulberry Group PLC
Next Fifteen Communications…
Nichols PLC
Numis Corp PLC
Oakley Capital Investments Ltd
Origin Enterprises PLC
Pan African Resources PLC
Patisserie Holdings PLC
Plus500 Ltd
Polar Capital Holdings PLC
Purplebricks Group PLC
Quixant PLC
Redde PLC
Renew Holdings PLC
Restore PLC
RhythmOne PLC
RWS Holdings PLC
SafeCharge International Gr…
Safestyle UK PLC
San Leon Energy PLC
Scapa Group PLC
Smart Metering Systems PLC
Sound Energy PLC
Staffline Group PLC
Summit Germany Ltd
Taptica International Ltd
Telford Homes PLC
Thorpe (F W) PLC
Time Out Group PLC
UK Oil & Gas Investments PLC
Vertu Motors PLC
Victoria PLC
VinaLand Ltd
Wandisco PLC
Watkin Jones PLC
Xeros Technology Group PLC
XLMedia PLC
YouGov PLC
Young & Co’s Brewery PLC

BlueZest is a new lender on the UK market, financing mortgages for buy to let investors and property developers.

http://www.bluezest.com/

How are they going to finance the mortgages they advance to borrowers ?

The issuance of a bond to raise the funds:-

http://www.bluezest.com/bond-investors/

The BlueZest Secured Retail Bond PLC

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/other/13440843.html

On the 22nd of November 2017 BlueZest Secured Retail Bond PLC, a wholly-owned subsidiary of BlueZest Funding Limited, established a £1.5bn secured retail bond programme
Thus raising £1.5b in funding from this bond, secured against the properties they lend the cash from the bond programme.

Interest rate: 5.25% Per Annum

So, raising £1,500,000,000 = £1.5 Billion: How many mortgages could this be ?

if we assume, that each mortgage is £250,000 that BlueZest advance on a property worth £300,000 so the borrow has to put down £50,000 cash deposit, in my rough example:

£1,500,000,000 (funds from the bond issue) / £250,000 (each mortgage) = 6,000 loans funded.

As we come to the end of the year, it worth reflecting the movement in the FTSE-100

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=50058

From 6750 in Jan 2017 to today at just over 7300. A nice 12month gain, delicious

The UK Flagship index, The FTSE-100: It is worth over £2,000 Billion

AAL Anglo American   19,250.16 £Million
ABF Associated British Foods 23,342.51 £Million
ADM Admiral Group   5,503.03 £Million
AHT Ashtead Group   9,490.28 £Million
ANTO Antofagasta   8,983.62 £Million
AV. Aviva    20,467.53 £Million
AZN AstraZeneca   60,750.35 £Million
BA. BAE Systems   17,576.76 £Million
BAB Babcock International Group 3,515.16 £Million
BARC Barclays   33,032.14 £Million
BATS British American Tobacco 108,460.20 £Million
BDEV Barratt Developments  6,117.24 £Million
BKG Berkeley Group Holdings (The) 5,147.14 £Million
BLND British Land Co   6,301.10 £Million
BLT BHP Billiton   28,386.25 £Million
BNZL Bunzl    7,107.91 £Million
BP. BP    97,217.50 £Million
BRBY Burberry Group   7,311.75 £Million
BT.A BT Group   25,893.33 £Million
CCH Coca-Cola HBC   8,633.83 £Million
CCL Carnival   10,030.13 £Million
CNA Centrica   8,077.91 £Million
CPG Compass Group   23,715.10 £Million
CRDA Croda International  5,618.36 £Million
CRH CRH    21,621.31 £Million
CTEC ConvaTec Group   3,756.34 £Million
DCC DCC    6,351.10 £Million
DGE Diageo    64,036.46 £Million
DLG Direct Line Insurance Group 5,010.50 £Million
EXPN Experian   14,187.34 £Million
EZJ easyJet    5,594.68 £Million
FERG Ferguson   13,303.49 £Million
FRES Fresnillo   9,454.35 £Million
GFS G4S    3,982.17 £Million
GKN GKN    5,320.75 £Million
GLEN Glencore   48,769.38 £Million
GSK GlaxoSmithKline   62,934.53 £Million
HL. Hargreaves Lansdown  7,584.36 £Million
HMSO Hammerson   4,110.89 £Million
HSBA HSBC Holdings   147,240.09 £Million
IAG International Airlines Group 12,568.10 £Million
IHG InterContinental Hotels Group 8,197.13 £Million
III 3i Group   8,743.62 £Million
IMB Imperial Brands   29,271.43 £Million
INF Informa    6,171.80 £Million
ITRK Intertek Group   8,388.27 £Million
ITV ITV    6,432.60 £Million
JMAT Johnson Matthey   5,853.42 £Million
KGF Kingfisher   7,223.94 £Million
LAND Land Securities Group  6,906.49 £Million
LGEN Legal & General Group  15,929.22 £Million
LLOY Lloyds Banking Group ORD 47,520.05 £Million
LSE London Stock Exchange Group 13,057.54 £Million
MCRO Micro Focus International 10,765.59 £Million
MDC Mediclinic International 4,126.72 £Million
MERL Merlin Entertainments  3,601.13 £Million
MKS Marks & Spencer Group  5,079.75 £Million
MNDI Mondi    8,584.59 £Million
MRW Morrison (Wm) Supermarkets 5,081.36 £Million
NG. National Grid   29,790.22 £Million
NMC NMC Health   5,808.70 £Million
NXT Next    6,522.39 £Million
OML Old Mutual Group  9,697.31 £Million
PPB Paddy Power Betfair  7,060.91 £Million
PRU Prudential   48,136.41 £Million
PSN Persimmon   7,811.41 £Million
PSON Pearson    5,702.42 £Million
RB. Reckitt Benckiser Group  45,820.41 £Million
RBS Royal Bank of Scotland Group 33,051.67 £Million
RDSA Royal Dutch Shell  107,248.19 £Million
RDSB Royal Dutch Shell  89,723.14 £Million
REL RELX    18,392.35 £Million
RIO Rio Tinto   47,477.11 £Million
RR. Rolls-Royce Group  15,649.66 £Million
RRS Randgold Resources  6,375.82 £Million
RSA RSA Insurance Group  6,200.38 £Million
RTO Rentokil Initial  5,839.96 £Million
SBRY Sainsbury (J)   5,080.06 £Million
SDR Schroders   7,804.55 £Million
SGE Sage Group (The)  8,360.66 £Million
SGRO Segro    5,480.99 £Million
SHP Shire    33,288.00 £Million
SKG Smurfit Kappa Group  5,555.22 £Million
SKY Sky    16,085.70 £Million
SLA Standard Life Aberdeen  12,787.83 £Million
SMIN Smiths Group   5,854.27 £Million
SMT Scottish Mortgage Investment 6,312.34 £Million
SN. Smith & Nephew   11,422.90 £Million
SSE SSE    13,913.47 £Million
STAN Standard Chartered  24,290.13 £Million
STJ St James’s Place  6,393.75 £Million
SVT Severn Trent   4,943.81 £Million
TSCO Tesco    15,919.93 £Million
TUI TUI AG    7,939.69 £Million
TW. Taylor Wimpey   6,364.01 £Million
ULVR Unilever   51,474.78 £Million
UU. United Utilities Group  5,588.08 £Million
VOD Vodafone Group   59,816.01 £Million
WPG Worldpay Group   8,472.00 £Million
WPP WPP Group   16,511.60 £Million
WTB Whitbread   6,551.99 £Million

Total     £2,029,210.01 Million

That is £2.029 TRILLION: The value of the FTSE-100

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 November 2017, 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” 3 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-
21-Nov-2017 0 1/8% Index-linked Treasury Gilt 2026 £1,000.0000 Million
16-Nov-2017 1¼% Treasury Gilt 2027 £2,722.3200 Million
09-Nov-2017 0¾% Treasury Gilt 2023 £2,750.0000 Million

When you add the cash raised:-

∑(£1,000.0000 Million + £2,722.3200 Million + £2,750.0000 Million) =  £6,472.32 Million

£6,472.32 Million  = £6.47232 Billion

On another way of looking at it, is in the 30 days in November, HM Government borrowed:-

£215 million each day for the 30 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 2023, 2026 and 2027. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”

Legal and General.

http://www.legalandgeneralgroup.com/files/pdf/results/2017/half_year_results/2017_half_year_results.pdf

Look after assets worth £951bn. That is about 67% of UK Annual GDP.

Yesterday, Royal Dutch Shell broke the £200bn valuation:

www.shell.com

It is two share listings, Shell A and Shell B

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=133655

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=133755

Yesterday:

Shell A was worth: £ 108,862m
Shell B was worth: £ 91,390m

A combined value of £200,252 million = £200.252 Bn.

The Foreign and Colonial Investment Trust is a flagship investment trust listed on the London Stock Exchange.

http://www.fandc.com/foreign-and-colonial-investment-trust/

It dates back to 1868, and allowed small investors to get access to global stock markets.

On Wednesday 1st October it paid out 2.5p per share to shareholders.

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/FRCL/13412215.html

The total number of voting rights in the Company is 542,582,345

Thus:

542,582,345 x £0.025 = £13,564,558.63

That is a £13m divident payout.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10192&action=

1.6% yield

The fall in one day was dramatic. Look at the performance over 1 year. A high of 235p to the current low of 138p

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10029

Rio Tinto is one of the largest natural resources companies in the world.

www.riotinto.com

Its shares have gone from £30 a share 12months ago to now over £37 a share.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10071&record_search=1&search_phrase=rio

The Bank of England base rate is 0.5%

Getting a decent income on investments in the climate, post financial crisis is hard.

But look at the owner of British Gas plc:

www.centrica.com

The dividend yield is incredible.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10029&record_search=1&search_phrase=CNA

7%

https://www.youtube.com/watch?v=gDiKG8LYfqM

Amazing.

http://womeninfintech.co.uk/wp-content/uploads/2017/11/wif_2017_powerlist.pdf

Alexandra Foster, from BT is in the list, BT [www.bt.com] the world’s leading telecommunications and media corporation.

http://linkedin.com/in/alexandrajfoster

https://www.youtube.com/watch?v=gZMXutj29EE

The Bank of England thinks that 75,000 banking jobs could be lost from The City of London due to the UK leaving The EU.

http://www.bbc.co.uk/news/business-41803604

What could this mean ?

If the average London banker salary is say £80,000 what money will be lost to the UK Treasury in lost income tax ?

So:-

75,000 people x £80,000 = £6,000,000,000 (£6 billion in salaries)

approx 50% of this is paid in Income Tax and National Insurance.
That means immediately a loss of revenue for the UK Treasury of £3,000,000,000

Then the salaries post of tax is used to rent or mortgages or buying food, the cost of living.
All that disposable income is also lost to the UK economy.

75,000 jobs being lost, could mean, £6 Billion lost to the UK economy,

Brexit will result in the UK becoming poorer.

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 October 2017, 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 (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-

24-Oct-2017 0 5/8% Index-linked Treasury Gilt 2042 £650.0000  Million
19-Oct-2017 1¼% Treasury Gilt 2027 £2,599.2400 Million
10-Oct-2017 1¾% Treasury Gilt 2037 £2,500.0000 Million
05-Oct-2017 0¾% Treasury Gilt 2023 £3,162.5000 Million

When you add the cash raised:-

∑(£650.0000  Million + £2,599.2400  Million + £2,500.0000 Million + £3,162.5000 Million) =  £8911.74 Million

£8911.74 Million  = £8.91174 Billion

On another way of looking at it, is in the 31 days in October, HM Government borrowed:-

£287 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 mature 2042, 2037, 2027 and 2023. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”

Stock market prices are in the financial press. Their is a lot of talk about the global stockmarkets being highly over valued. What is interesting is seeing the valuations of some technology companies.

Lets look at American Telephone and Telegraph (AT&T).

http://www.nasdaq.com/symbol/t

Now lets look at Facebook

http://www.nasdaq.com/symbol/fb

The difference is huge.

AT&T’s market value is: $203,049,800,000 ($203 Billion)

Facebook’s market value is $523,481,434,266  ($523 Billion)

Two huge technology companies, one over 100 years old, and the other is less that 15 years old.
Yet Facebook is worth more than twice that of the telephone giant, AT&T.

https://www.youtube.com/watch?v=o8Dn6bnCMQc

Morrisons PLC paid out its November dividend.

http://www.morrisons.com

It paid out 1.66p per share, what did this cost Morrisons PLC ?

https://otp.tools.investis.com/clients/uk/morrison/rns/regulatory-story.aspx?cid=623&newsid=946302

The total number of voting rights in Wm Morrison Supermarkets PLC is 2,355,206,626.

Thus:

2,355,206,626 x £0.0166 = £39,096,429.99

That is £39m in cash

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10248&action=

That is 2.4% yield.

Facts from the Q3 HSBC Results 2017

The Hong Kong and Shanghai Banking Corporation released its Q3 results on the 30th October.

http://www.hsbc.com/investor-relations/group-results-and-reporting?pid=HGHQ:EL:IN:XX:HOM:1710:001:3Q2017

The numbers are staggering, in the sense the bank is vast.

Total assets $2,526,214 MILLION, yes $2.526 TRILLION
Loans and advances to customers $945,168, yes $945 Billion
Cutomer accounts deposits $1,337,121, yes $1.337 TRILLION
Debt securities in issue $59,740, yes $59 Billion of bonds

https://www.youtube.com/watch?v=EIJqtWUiUCs&app=desktop

The Standard Life Passive Plus III Pension Fund is a fund from Standard Life that is actually a funds of funds.

https://uk.standardlifeinvestments.com/SL_P_Passive_Plus_III.pdf

It is also the default fund that investors (pension savers) with BT, who joined after March 2001, and is given to staff who join the BT Retirement Savings Scheme.

https://www.btretirementsavingscheme.com/bt/

The goal of this fund is to provide long term growth while being managed to a level of risk, rather than a
level of return. The fund is part of the Passive Plus range, which aims to offer five different combinations of
investment risk and return levels

Current Fund Size £2,744.3 Million

SL VANGUARD FTSE UK ALL SHARE INDEX 14.6% of the fund
SL SLI GLOBAL ABSOLUTE RETURN STRATEGIES 13.9% of the fund
SL VANGUARD US EQUITY 13.3% of the fund
SL VANGUARD UK SHORT-TERM INVESTMENT GRADE BOND 10.8% of the fund
SL VANGUARD UK INVESTMENT GRADE BOND INDEX 10.8% of the fund
SL PROPERTY PENSION 6.3% of the fund
SL VANGUARD FTSE DEVELOPED EUROPE EX UK EQUITY INDEX 5.7% of the fund
SL VANGUARD UK GOVERNMENT BOND INDEX 4.9% of the fund
SL VANGUARD JAPAN STOCK INDEX 4.1% of the fund
SL MONEY MARKET PENSION 4.1% of the fund
SL VANGUARD PACIFIC EX JAPAN STOCK INDEX 3.4% of the fund
SL VANGUARD EMERGING MARKETS STOCK INDEX 3.3% of the fund
SL SLI GLOBAL HIGH YIELD BOND 2.8% of the fund
SL GLOBAL PROPERTY SECURITIES ASSET 2.0% of the fund

The performance:

Year to 30/06/2017 (%) 11.0
Year to 30/06/2016 (%) 3.7
Year to 30/06/2015 (%) 5.6
Year to 30/06/2014 (%) 7.2
Year to 30/06/2013 (%) 7.2

You can see year on year growth.

UK Mortgages PLC, an investment fund that buys residential mortgages, managed by TwentFour Asset Management pays out its quarterly dividend.

https://twentyfouram.com/funds/uk-mortgages-fund/

The dividend is 1.5p a share on the 31st October (today)

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/UKML/13393822.html

250,000,000 shares in issue:

Thus:

£0.015 x 250,000,000 = £3,750,000.00

That is £3.75million in dividends.

http://content.prnewswire.com/documents/PRNUK-1509171649-CA52_UKML_Factsheet_-_July_2017_CC.pdf

https://www.youtube.com/watch?v=mOS4wAsBnvM

The newly merged company, of Standard Life and Aberdeen Asset Management has issued debt to fund its business

https://www.standardlifeaberdeen.com/

Various debt instruments are issued (bonds)

https://www.standardlifeaberdeen.com/investors/for-debt-investors

https://www.youtube.com/watch?v=r2dGl-2OEsk

The FinTech sector has loads of new companies offering financial solutions to the time poor who can now use automated systems to buy investments.

https://www.wealthify.com/

is a new one that has just been taken over by Aviva PLC

https://www.aviva.com/media/news/item/aviva-to-make-strategic-investment-in-wealthify-17830/

Platforms like Wealthify are “Robot Investors” that invest client money into collective investments like Unit Trusts, and use various different types of asset classes and different types of funds

They spread the risk over these types of assets:-

Alternatives – 7%
Cash – 2%
Commodities – 11%
Corporate Bonds – 6%
Government Bonds – 12%
Property – 4%
Shares – 58%

Funds from investment companies such as:

Vanguard
Aberdeeen Asset Management
Henderson Janus
Fidelity
Legal and General
Blackrock
iShares

Yesterday, Standard Life Aberdeen paid out its maiden dividend.

https://www.standardlifeaberdeen.com/

This is the merger of Aberdeen Asset Management and Standard Life

The dividend is 7p per share.

https://otp.tools.investis.com/clients/uk/standard_life/rns/regulatory-story.aspx?cid=65&newsid=936066

The total number of voting rights in the Company, as at 29 September 2017, is therefore 2,977,315,478.

Thus:-

2,977,315,478 x £0.07 = £208,412,083.46

That is £208m

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=186960

The Supermarket Income REIT plc is a London Listed investment trust owning Supermarket real estate, that it gets an income from the rent the supermarket pays.

https://www.supermarketincomereit.com/

Currently they own 3 supermarkets:

https://www.supermarketincomereit.com/portfolio-overview

Sainsbury’s, Ashford, Address: Simone Weil Ave, Ashford TN24 8YN
[Supermarket Income REIT acquired the property in August 2017 for £80.0 million, reflecting a net initial yield of 4.5%]

Tesco, Thetford, Address: Kilverstone, Thetford, Norfolk IP24 2RL
[Supermarket Income REIT acquired the property in August 2017 for £43.2 million, reflecting a net initial yield of 5.4% or 5.6% after the agreed RPI-linked rent review in December 2017.]

Tesco, Bristol, Address: Lime Trees Rd, Bristol BS6 7XW
[Supermarket Income REIT acquired the property in August 2017 for £28.5 million, reflecting a net initial yield of 4.9%. ]

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=54589400

£99m market capitalisation

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/SUPR/13378063.html

A dividend declared of 1.375p. They plan a quarterly dividend.

On Tuesday 12th Oct, GlaxoSmithKline paid out its October dividend to shareholders.

www.gsk.com

The dividend was 19p per share.

What did this cost GSK plc ?

http://otp.investis.com/clients/uk/GlaxoSmithKline2/rns_new/regulatory-story.aspx?cid=410&newsid=935732

The total number of voting rights in the Company is 4,918,631,170

Thus:-

4,918,631,170 x £0.19 = £934,539,922.30

That is £934m

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10042

5% yield.

The TechMark Index is London’s technology index.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=50149

It has grown over the past 5 years from:

2021 5 years ago, to today at over 3400

https://www.youtube.com/watch?v=r9b3vOcu3oY

The Henderson Alternative Strategies Trust PLC is a London listed £115m Investment Trust.

https://www.janushenderson.com/ukpi/fund/320

Managed by Henderson Janus, it invests in diversified, international, multi-strategy portfolio which offers access also to specialist funds including hedge and private equity

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=13411

It’s top ten holdings are:

5.9% Blackrock European Hedge Fund
5.1% Ceiba Investment Ltd
4.9% Riverstone Energy
4.7% Schroder Gaia Indus Pacific Choice
4.6% Mantra Investissement
4.0% Majedie Tortoise Investmetn
3.9% Baring Vostock Inv PCC Core
3.9% Summit Germany
3.8% Helium Fund Select S
3.7% Gensis Emerging Markets

What is interesting is this:

Shareprice = £2.95
Asset Price = £3.30

Thus you are able to buy assets worth £3.30 for £2.95…… that is a  big discount.

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 September 2017, 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” 3 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-

27-Sep-2017 0 1/8% Index-linked Treasury Gilt 2036 £950.0000 Million
19-Sep-2017 1½% Treasury Gilt 2047 £2,500.0000 Million
13-Sep-2017 1¼% Treasury Gilt 2027 £2,500.0000 Million

When you add the cash raised:-

∑(£950.0000  Million + £2,500.0000 Million + £2,500.0000 Million) =  £5,950 Million
Million

£5,950 Million Million  = £5.950 Billion

On another way of looking at it, is in the 30 days in June, HM Government borrowed:-

£198 million each day for the 30 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 2027, 2036 and 2047. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”

The FTSE-100 Pharma Company Astra Zeneca paid out its September Dividend.

http://www.astrazeneca.com/

68.9p per share.

https://www.astrazeneca.com/investor-relations/Stock-exchange-announcements/transparency-directive-voting-rights-and-capital-01082017.html

The total number of voting rights in AstraZeneca PLC is 1,265,794,991

Thus:-

1,265,794,991 x £0.689 per share = £872,132,748.80

That is £872million

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10009&record_search=1&search_phrase=az

A yield of over 4.7%

FTSE 100 Index is a market-capitalisation weighted index of UK-listed blue chip companies.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=50058

It is made up of these sectors:

Oil & Gas 3 Companies who total market capitalisation is £261,815 Million 13.71% of the FTSE-100
Chemicals 2 Companies who total market capitalisation is £10,113 Million 0.53% of the FTSE-100
Basic Resources 8 Companies who total market capitalisation is £154,949 Million 8.12% of the FTSE-100
Construction & Materials 1 Company who total market capitalisation is £22,673 Million 1.19% of the FTSE-100
Industrial Goods & Services 15 Companies who total market capitalisation is £128,229 Million 6.72% of the FTSE-100
Automobiles & Parts 1 Company who total market capitalisation is £5,467 Million 0.29% of the FTSE-100
Food & Beverage 3 Companies who total market capitalisation is £80,680 Million 4.23% of the FTSE-100
Personal & Household Goods 8 Companies who total market capitalisation is £269,391 Million 14.11% of the FTSE-100
Health Care 6 Companies who total market capitalisation is £184,553 Million 9.67% of the FTSE-100
Retail 6 Companies who total market capitalisation is £41,454 Million 2.17% of the FTSE-100
Media 6 Companies who total market capitalisation is £61,907 Million 3.24% of the FTSE-100
Travel & Leisure 9 Companies who total market capitalisation is £77,673 Million 4.07% of the FTSE-100
Telecommunications 2 Companies who total market capitalisation is £83,413 Million 4.37% of the FTSE-100
Utilities 5 Companies who total market capitalisation is £70,410 Million 3.69% of the FTSE-100
Banks 5 Companies who total market capitalisation is £257,187 Million 13.47% of the FTSE-100
Insurance 8 Companies who total market capitalisation is £115,197 Million 6.03% of the FTSE-100
Real Estate 4 Companies who total market capitalisation is £23,751 Million 1.24% of the FTSE-100
Financial Services 7 Companies who total market capitalisation is £47,625 Million 2.49% of the FTSE-100
Technology 2 Companies who total market capitalisation is £12,521 Million 0.66% of the FTSE-100

Totals 101 Companies, total vaue £1,909,009 Million 100.00% of the FTSE 100 Index.

That is £1.9 Trillion.

The Vanguard U.S. Investment Grade Credit Index Fund is a world class fixed income fund.

The Fundamentals of the fund

Number of bonds 6,306
Effective Yield To Maturity 2.9%
Average coupon 3.8%
Average maturity 9.3 years
Average quality A
Average duration 6.5 years
Cash investments 0.6%.

The Fund holds:

AAA 13.6%
AA 11.0%
A 32.8%
BBB 40.6%
Less than BBB 0.0%
Not Rated 2.0%

Total 100%

Assets of the fund:-

Corporate-Industrial 41.4%
Corporate-Financial Institutions 24.3%
Gov-Related-Agency 10.3%
Gov-Related-Sovereign 4.8%
Corporate-Utility 4.8%
Gov-Related-Supranational 4.1%
Securitized-Commercial Mortgage Backed Security 3.7%
Gov-Related-Local Authority 3.0%
Securitized-Asset Backed Security 1.7%
Treasury 1.3%
Cash 0.6%
Securitized-Mortgage Backed Security Pass-through 0.0%
Other 0.0%

Total 100.0%

Legal and General plc is the giant FTSE-100 Life Insurer and Investment Manager.

http://www.legalandgeneral.com

The yield is incredible.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10055&action=

https://www.youtube.com/watch?v=weAUQIZG9xU

The Reserve Bank of India published it latest annual report.

https://www.rbi.org.in/scripts/AnnualReportPublications.aspx

Interesting to see the statistics on Foreign Direct Investment in India.

https://www.rbi.org.in/scripts/AnnualReportPublications.aspx?Id=1221

The United Kingdom in the 6th Largest Investor in India with last year an investment of $1,301m into India.

The table below shows India’s largest investors, $

36,317million.

Yesterday, Fri 22nd Sept 2017, the oil major BP, paid its shareholders its September dividend.

www.bp.com

It was $0.10 a share = 7.6213p a share.

What did that cost BP ?

The total number of voting rights in BP p.l.c. is 19,757,724,586

http://otp.investis.com/clients/uk/bp_plc/rns/regulatory-story.aspx?cid=233&newsid=912897

Thus:-

19,757,724,586 x 7.6213p = £1,505,795,463.87

That is £1,505 Million = £1.505 Billion

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10022&record_search=1&search_phrase=BP

That is a yield of over 6%.

The risks of weak financial regulation

https://www.youtube.com/watch?v=b2q3sdJvNpU

The objective of Aberdeen New Dawn Investment Trust PLC is to provide shareholders
with a high level of capital growth through equity investment in the Asia Pacific
countries excluding Japan.

http://www.newdawn-trust.co.uk/itnewdawn/

Its top ten holdings are:-

Aberdeen Global-Indian EquityC (India) 12.6% of the fund
Samsung Electronics Pref (Korea) 4.8% of the fund
Jardine Strategic (Hong Kong) 4.7% of the fund
Aberdeen Global – China A Share (China) 4.3% of the fund
Oversea-Chinese Banking Corp. (Singapore) 4.1% of the fund
TSMC (Taiwan) 3.6% of the fund
AIA (Hong Kong) 3.4% of the fund
Ayala Land (Philippines) 3.3% of the fund
City Developments (Singapore) 2.9% of the fund
Rio Tinto (Australia) 2.6% of the fund

Total of the top ten make up 46.3% of the fund

Fundamentals:-

Gross assets £332.7m
Debt £29.1m
Cash £1.3m

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10651&action=

A yield of 1.7% in a climate of UK interest rates of 0.25%

The 2 Long Term Investors: Asad & Ayana Karim

The Jupiter India Fund is a UK based Unit Trust investing in India and beyond. The Fund aims to achieve long-term capital growth. It will invest primarily in companies which operate or reside in India. It may also invest in companies based in
Pakistan, Sri Lanka and Bangladesh and in companies which derive a significant proportion of business from or within India.

https://www.jupiteram.com/UK/en/Individual-Investors/Our-Funds/Asset-Classes/Equities/Jupiter-India-Fund?sc=GB00B4TZHH95

Top Ten Holdings
Hindustan Petroleum 7.1% of the fund
Godfrey Phillips India 4.3% of the fund
Biocon 3.5% of the fund
State Bank of India 3.1% of the fund
Interglobe Aviation 2.9% of the fund
Reliance Capital 2.5% of the fund
Infosys 2.4% of the fund
Bharat Petroleum 2.4% of the fund
Gillette India 2.2% of the fund
Indian Oil 2.2% of the fund

Total 32.5%

Fund Value: £1,087m

The Royal Sun Alliance Group is a large UK non-life insurer.

http://www.rsagroup.com/

It has a debt programme to help fund its operations

http://www.rsagroup.com/investors/bond-investors/

The outstanding debt that is issued in bonds by RSA Group is:-

Total loan capital £1,254 Million.

This is made up of:-

£5m in Subordinated guaranteed US$ bonds [The rate of interest payable on the bonds is 8.95%]
£359m Perpetual guaranteed subordinated securities [rate of interest payable is 6.701%]
£496m Guaranteed subordinated step-up notes due 2039 [bear interest at a fixed rate of 9.375%]
£394m Guaranteed subordinated notes due 2045 (GBP) [bear a fixed rate of 5.125%]

One can see the debt holders (bond holders) are getting a massive interest rate (coupon) for holding RSA Debt.

The FTSE-All Share is a large Index that represents 639 Companies.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=50100&record_search=1&search_phrase=FTSE All-Share

The 19 sector components that make up the index are:-

Oil & Gas 18 Companies with a market capitalisation of £272,642 Million 11.41% of the index
Chemicals  8 Companies with a market capitalisation of £14,749 Million  0.62% of the index
Basic Resources  22 Companies with a market capitalisation of £167,331 Million  7.00% of the index
Construction & Materials  16 Companies with a market capitalisation of £35,867 Million  1.50% of the index
Industrial Goods & Services  95 Companies with a market capitalisation of £231,185 Million  9.67% of the index
Automobiles & Parts  1 Company with a market capitalisation of £5,467 Million  0.23% of the index
Food & Beverage  15 Companies with a market capitalisation of £91,942 Million  3.85% of the index
Personal & Household Goods  26 Companies with a market capitalisation of £289,646 Million  12.12% of the index
Health Care  22 Companies with a market capitalisation of £202,368 Million  8.47% of the index
Retail 35 Companies with a market capitalisation of £72,998 Million  3.05% of the index
Media  22 Companies with a market capitalisation of £79,443 Million  3.32% of the index
Travel & Leisure  36 Companies with a market capitalisation of £108,052 Million  4.52% of the index
Telecommunications  6 Companies with a market capitalisation of £88,921 Million  3.72% of the index
Utilities  7 Companies with a market capitalisation of £75,035 Million  3.14% of the index
Banks  11 Companies with a market capitalisation of £265,625 Million  11.11% of the index
Insurance  19 Companies with a market capitalisation of £130,918 Million  5.48% of the index
Real Estate  53 Companies with a market capitalisation of £59,442 Million  2.49% of the index
Financial Services  211 Companies with a market capitalisation of £177,522 Million 7.43% of the index
Technology  16 Companies 20  with a market capitalisation of £20,712 Million 0.87% of the index

Totals  639 Companies with the total value of £2,389,866 Million making 100.00% of the index.

That is £2.389 Trillion

https://www.youtube.com/watch?v=7Qo_f7Gzqds

The Junior Oils Trust is a fund that invests in smaller oil companies.

http://www.junioroils.com/

The Fund is managed by Sector Investment Managers Ltd and Marlborough Fund Managers Ltd

https://www.marlboroughfunds.com/

http://www.sectorinvestments.com/

It’s performance since inception has show huge growth and then slump. The investment objective of the Junior Oils Trust is to provide long-term capital growth from a global portfolio of small to medium capitalisation companies specialising in oil exploration and production

http://www.junioroils.com/fund-performance/

Its top ten holdings:-

1. Questerre Energy 11.0% of the fund
2. FAR Ltd 7.1% of the fund
3. Carnarvon Petroleum 5.8% of the fund
4. Africa Oil 5.1% of the fund
5. Ophir Energy 5.0% of the fund
6. Painted Pony 4.9% of the fund
7. Cooper Energy 4.7% of the fund
8. Faroe Petroleum 4.4% of the fund
9. Tamarack Valley 4.4% of the fund
10. Pantheon Resources 4.0% of the fund

This makes up 56.5% of the fund.

The FTSE-250 is the next biggest index on the London Stock Exchange after the FTSE-100. It represents the next 250 largest companies.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=50059

The Ticker Symbol is “MCX”

Look at the growth.

From 12,000 points 5 years ago to today, at 19,600

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 August 2017, 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” 3 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-

23-Aug-2017 0¾% Treasury Gilt 2023 £3,158.6280 Million
08-Aug-2017 0 1/8% Index-linked Treasury Gilt 2026 £1,000.0000 Million
01-Aug-2017 1¼% Treasury Gilt 2027 £2,250.0000 Million

When you add the cash raised:-

∑(£3,158.6280  Million + £1,000.0000  Million + £2,250.0000 Million) =  £6,408.63 Million
Million

£6,408.63 Million  = £6.40863  Billion

On another way of looking at it, is in the 31 days in June, HM Government borrowed:-

£206 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 mature 2023, 2026 and 2027. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”

https://www.youtube.com/watch?v=CHPOhdcOU5o

The F&C Global Smaller Companies PLC

The Foreign & Colonial Global Smaller Companies PLC is a London Listed Investment Trust.

http://www.fandc.com/fandc-global-smaller-companies/

A £775m fund. It is a fund of funds, as it holds shares in other investment companies that are investing in global smaller companies.

Its top ten holdings are:-

Eastspring Investments Japan Smaller Companies 4.6%
Aberdeen Global Japanese Smaller Companies 3.9%
Scottish Oriental Smaller Cos Inv Trust 3.0%
Pinebridge Asia ex Japan Small Cap Equity 2.0%
Utilico Emerging Markets 1.6%
HSBC GIF Asia ex Japan Equity Smaller Companies 1.4%
Aberdeen Global Asian Smaller Companies 1.3%
Manulife Global Asian Smaller Companies 1.2%
Alleghany 1.1%
Franklin Financial Network 1.1%

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=11839&record_search=1&search_phrase=fcs

A yield of 0.8%

The Schroder Income Growth Fund plc is a London listed Investment Trust.

http://www.schroders.com/en/uk/asset-manager/fund-centre/funds-in-focus/schroder-income-growth-fund-plc/

It has raised its dividend consistently for the last 21 years.

Its holdings are:-

Assura PLC Ord GBP0.1
AstraZeneca USD0.25
Aviva Ord GBP0.25
BAE Systems Ord GBP0.025
Bellway Ord GBP0.125
BP Plc Ord USD0.25
British American Tobacco Ord GBP0.25
BT Group Ord GBP0.05
Burberry Group Ord GBP0.0005
Centrica Ord GBP0.061728
Daily Mail & General Trust Ord NV GBP0.125
ENI EUR1
Galp Energia SGPS SA-B EUR1
GlaxoSmithKline Ord GBP0.25
Greencore Group Plc EUR0.01
Halfords Group Ord GBP0.01
HSBC Holdings Ord USD0.50
IMI Plc Ord GBP0.2857
Imperial Brands Plc Ord GBP0.10
Intermediate Capital Group PLC Ord GBP0.2625
ITV Ord GBP0.10
John Laing Group PLC WI Ord GBP0.10
John Wood Group Ord GBP0.04285714
Laird Ord GBP0.28125
Legal & General Ord GBP0.025
Lloyds Banking Group Ord GBP0.1
London Stock Exchange Group GBP0.069186
Micro Focus International Ord GBP0.1
NEX Group Plc GBP0.175
Nordea NPV
Pearson Ord GBP0.25
Prudential Ord GBP0.05
Relx PLC Ord GBP0.1444
Rio Tinto Ord GBP0.10
Roche Holding Gsh NPV
Royal Dutch Shell ‘A’ EUR0.07
Royal Dutch Shell ‘B’ EUR0.07
Smurfit Kappa Group (LN) EUR0.001
Taylor Wimpey GBP0.01
TP Icap Plc Ord GBP0.25
Unilever Ord GBP0.031
Unite Group Ord GBP0.25
Vodafone Group Ord USD0.2095238

Total market value of investments £225,977,655

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=13404&record_search=1&search_phrase=schroder

A yield of over 3.5%

On Friday 25th August, Greencoat UK Wind PLC paid out its August dividend. A member of the FTSE-250 Index.

http://www.greencoat-ukwind.com/

A dividend of 1.6225p per share.

The total voting rights in UK Greencoat Wind is 736,700,850

http://otp.investis.com/clients/uk/greencoat/rns/regulatory-story.aspx?cid=2184&newsid=858924

Thus the cost of the dividend:-

736,700,850 shares x £0.016225 = £11,952,971.29

That is £11million

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=7013076&action=

A 5% yield.

The British Empire Trust is a London Listed FTSE Investment Fund.

http://www.british-empire.co.uk/

Managed by Asset Value Investors

http://www.assetvalueinvestors.com/

The British Empire Trust plc (“British Empire”) was established in 1889 in order to generate profits for its shareholders by investing in the shares of other companies

today is has assets of over £750 million

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=11153

A yield of over 1.6%

It’s top 30 holdings are:-

Wendel Investment Holding Company 1.28% holding    6.25% of the fund
Jardine Strategic Investment Holding Company 0.16% holding  5.94% of the fund
NB Private Equity Partners Investment Company 9.99% holding  5.27% of the fund
JPEL Private Equity Investment Holding Company 15.58% holding  5.28% of the fund
Investor AB ‘A’ Investment Holding Company 0.47% holding  5.07% of the fund
Riverstone Energy Investment Company 4.57% holding   4.90% of the fund
Pargesa Investment Holding Company 1.10% holding   4.90% of the fund
Symphony International Holdings Investment Company 12.91% holding 4.68% of the fund
Tetragon Financial Investment Company 4.231% holding   4.09% of the fund
Adler Real Estate Real Estate Company 6.88% holding   3.99% of the fund
Aker ASA Investment Holding Company 1.69% holding   3.96% of the fund
Better Capital (2009) Investment Company 17.44% holding   3.81% of the fund
Toyota Industries Investment Holding Company 0.28% holding  3.64% of the fund
Kinnevik AB Investment Holding Company 0.69% holding   3.56% of the fund
AP Alternative Assets Investment Company 1.55% holding   3.47% of the fund
Exor Investment Holding Company 0.31% holding    3.16% of the fund
Hudson’s Bay Retail Holding Company 2.53% holding   3.03% of the fund
Digital Garage Investment Holding Company 3.67% holding   2.93% of the fund
DIC Asset Real Estate Company 4.85% holding    2.70% of the fund
Tokyo Broadcasting Investment Holding Company 0.93% holding  2.60% of the fund
SC Fondul Proprietatea – GDR Investment Company 0.46% holding  2.53% of the fund
Swire Pacific ‘B’ Investment Holding Company 0.56% holding  2.37% of the fund
Vietnam Phoenix Fund ‘C’ Investment Company 22.302% holding  1.93% of the fund
GP Investments Investment Company 14.62% holding   1.74% of the fund
Athene Holding Investment Company 0.25% holding    0.79% of the fund
SC Fondul Proprietatea Investment Company 0.03% holding   0.78% of the fund
Dragon Capital Vietnam Property Real Estate Company 15.4% holding 0.64% of the fund
LMS Capital Investment Company 12.05% holding    0.50% of the fund
Ashmore Global Opportunities – GBP Investment Company 12.572% holding 0.30% of the fund
Dolphin Capital Investors Real Estate Company 2.52% holding  0.18% of the fund

Top thirty investments  94.99 % of the Total Fund

The Carador Income Fund PLC is a London listed investment fund, managed by GSO / Blackstone Debt Funds Management LLC.

http://www.carador.co.uk/

The investment objective of Carador Income Fund PLC (the “Company” or “Carador”) is to produce attractive and
stable returns, with low volatility compared to equity markets, by investing in a diversified portfolio of senior notes of
collateralised loan obligations (“CLOs”), collateralised by senior secured bank loans and equity and mezzanine
tranches of CLOs.

Its top ten holdings:-

1. First Data Corp 1.01% of the fund
2. Transdigm 0.80% of the fund
3. Valeant Pharmaceuticals 0.79% of the fund
4. Dell Inc 0.77% of the fund
5. Calpine Corp 0.73% of the fund
6. Univision Communications 0.73% of the fund
7. Centurylink Inc 0.71% of the fund
8. Community Health 0.70% of the fund
9. Albertson 0.68% of the fund
10. Asurion Corp 0.64% of the fund

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=1927542&action=

UK Student Loans.

The media and politicans have been talking about the level of student debt.
No one can explain properly the level of debt.

Student loan debt in the UK has risen to more than £100bn for the first time, underlining the rising costs young people face in order to get a university education

The reason for the ballon in debt is simple. The rise in student debt has been driven partly by rules introduced in 2012, allowing universities in England to charge up to £9,000 a year in tuition fees
Before 2012, university fees were much lower.

So it began:-
Student loans first became part of the student support package in 1990/91. In that year students could take out a maximum of £420, and then it started to climb on the amount that could be borrowed.
Initially the loans were for living costs, as student tuition fees were paid by the local authorities.
Then over the years changes were made to stop local authorities paying the fees and loans were introduced to pay for the tuition fees, it was in 2006/07 when new students attending institutions in England and Northern Ireland could be charged variable fees of up to £3,000, it was New lending from 2006/07 was subject to a 25-year maximum term after which they are written off.
Then the fees start to rise.

At the end of 2016-17 total publicly owned debt for English students and EU students studying in England was £89.3 billion.

The Government has projected that the outstanding cash value of publicly owned student debt in England will increase to around £100 billion in 2016-17, £500 billion in the mid-2030s and £1,000 billion (£1 trillion) in the late 2040s. The real (2014-15) value is expected to exceed £100 billion around 2018, £200 billion in the late 2020s and stabilize around £300 billion by the middle of this century. These figures assume that fee increase in line with inflation from 2016.

http://researchbriefings.files.parliament.uk/documents/SN01079/SN01079.pdf

The numbers are staggering.

The Vanguard Funds Vanguard S&P 500 ETF is a fund that tracks the USA’s largest Index, the S&P 500.

https://www.vanguardinvestor.co.uk/investments/vanguard-s-and-p-500-ucits-etf/overview-tab

£14,674m of assets in this fund.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=2701271&record_search=1&search_phrase=vusa

Vanguard S&P 500 UCITS ETF seeks to track the performance of the index, a widely recognised benchmark of U.S. stock market performance that is comprised of the stocks of large U.S. companies.

The PIC (Pension Insurance Corporation), is a UK based insuring company, specialising in securing the liabilities of Defined Benefit pension schemes.

At year-end 2016, we had £22.6bn of assets and insured 134,900 pension fund members.

https://www.pensioncorporation.com/

What it does, is to take over the pension responsibility from companies.

So, a company is divested of all responsibility for supporting its pension fund. The pension fund is typically wound up and the trustees discharged, the assets pass across to PIC, which becomes responsible for paying pensions and pension fund members from the company become PIC policyholders following transition period

Thus de-risking the company of its pension liabilities and risks, but also then allowing the company to focus on its core business and passing in responsibility of its pension fund and pensions to the PIC.

There has been a lot of talk in the UK Press about the huge pension deficit in the UK Universities Pension Scheme.

http://www.bbc.co.uk/news/uk-40763577

The Universities Superannuation Scheme (USS) is one of the largest principal private pension schemes in the UK

http://www.uss.co.uk

USS is the principal pension scheme provided by universities and other higher education and associated institutions in the UK. It has over 390,000 members across over 350 institutions.

Net assets of the scheme £60.5 Billion:-

Securities (equities and bonds) £43.5 Billion
Pooled investment vehicles £13.1 Billion
Derivatives (net) £0.2 Billion
Property £2.1 Billion
Cash balances £2.0 Billion
Defined contribution investments £0.5 Billion
Other investment balances £(0.9) Billion

Net assets of the scheme 60.5 Billion

Top 20 assets held:-

Asset Value £m
UK Treasury 0.75% IL 22/03/2034 £1,955.0 Million 3.2% of the fund
UK Treasury 3.25% 22/01/2044 1,161.1 Million 1.9% of the fund
UK Treasury 4.25% 07/03/2036 1,132.3 Million 1.9% of the fund
US Treasury 0.625% IL 15/02/2043 1,009.5 Million 1.7% of the fund
US Treasury 0.75% IL 15/02/2042 908.0 Million 1.5% of the fund
UK Treasury 0.625% IL 22/03/2040 729.3 Million 1.2% of the fund
UK Treasury 1.5% 22/07/2047 690.8 Million 1.1% of the fund
UK Treasury 4.5% 07/09/2034 636.3 Million 1.1% of the fund
US Treasury 1.375% IL 15/02/2044 591.5 Million 1.0% of the fund
Royal Dutch Shell 505.0 Million 0.8% of the fund
UK Treasury 4.25% 07/09/2039 463.8 Million 0.8% of the fund
UK Treasury 0.125% IL 22/03/2044 377.5 Million 0.6% of the fund
Roche Holding 357.7 Million 0.6% of the fund
US Treasury 3.75% 15/08/2041 327.4 Million 0.5% of the fund
US Treasury BOND 3.125% 15/02/2042 307.2 Million 0.5% of the fund
Flughafen Zuerich AG 292.1 Million 0.5% of the fund
Samsung Electronics 290.5 Million 0.5% of the fund
UK Treasury GILT 3.5% 22/07/2068 281.3 Million 0.5% of the fund
US Treasury 2.125% IL 15/02/2040 276.1 Million 0.5% of the fund
Vodafone Group 274.1 0.5% of the fund
https://www.uss.co.uk/~/media/document-libraries/uss/how-uss-is-run/reports-and-accounts/2017-report-and-accounts-scheme.pdf

The Templeton Emerging Markets Investment Trust is a very highly regarding London FTSE-250 listed investment trust that is known to be the leader when it comes to Emerging Markets investment.

http://www.temit.co.uk/

Top Ten Holdings are:-

SAMSUNG ELECTRONICS CO LTD 7.33%
BRILLIANCE CHINA AUTOMOTIVE HOLDINGS LTD 7.18%
TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD 4.65%
NASPERS LTD 4.59%
TENCENT HOLDINGS LTD 3.87%
UNILEVER PLC 3.83%
ALIBABA GROUP HOLDING LTD 3.37%
HON HAI PRECISION INDUSTRY CO LTD 3.36%
ASTRA INTERNATIONAL TBK PT 2.96%
COMPANIA DE MINAS BUENAVENTURA SA 2.73%

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10319&record_search=1&search_phrase=temp

The total investments are:-

Standard Life posted it final sets of figures before it merges with Aberdeen Asset Management

https://www.standardlife.com/dotcom/investor-information/financial-results.page

Salient Facts:

Assets under administration (AUA) increased by 1% to £361.9bn
Fee based revenue up 5% to £836m
Interim dividend per share up 8.2% to 7.00p

Standard Life is the pension provider for BT’s employees who joined after 2001, the BT Retirement Savings Scheme.

BT, the world’s most dynamic media and telecommunications corporation.

www.btretirementsavingscheme.com

On Friday 4th August, Vodafone PLC paid out its 2017 half year dividend.

www.vodafone.com

It was 8.95p a share (€0.1003 a share)

http://www.vodafone.com/content/index/investors/shareholders/ordinary_shareholders/dividends.html

What did this cost Vodafone plc ?

The total number of voting rights in Vodafone is 26,667,760,581

http://tools.eurolandir.com/tools/Pressreleases/GetPressRelease/?ID=3363238&lang=en-GB&companycode=uk-vod&v=

That means:-

26,667,760,581 x 8.95p a share = £2,386,764,572

That is £2.386 Billion

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10097

5.9% yield.

The JPMorgan Asian Investment Trust is a £320m London Listed Investment trust.

https://am.jpmorgan.com/gb/en/asset-management/gim/per/products/d/jpmorgan-asian-investment-trust-plc-ordinary-shares-gb0001320778

Top Ten Holdings:

Samsung Electronics  7.6%
Tencent  6.9%
AIA  5.8%
Alibaba  5.2%
Ping An Insurance  3.8%
HDFC Bank  3.2%
Kasikornbank  2.6%
CNOOC  2.6%
CK Hutchison  2.6%
Taiwan Semiconductor  2.4%

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=50971

The The ETFS ISE Cyber Security Go ETF is an London Listed “Exchange Traded Fund” that invests in Cyber Security companies.

Its holdings are:-

SPLUNK INC USD 0.001
VERINT SYSTEMS  INC.
F5 NETWORKS INC NPV
AKAMAI TECHNOLOGIES INC
SOPHOS GROUP PLC 3P 144A
RADWARE LTD ILS 0.05
SCIENCE APPLICATIONS INT USD 0.0001
JUNIPER NETWORKS INC USD 0.00001
CHECK POINT SOFTWARE TECHN USD 0.01
PALO ALTO NETWORKS INC USD 0.0001
QUALYS INC USD 0.001
MIMECAST LTD
TREND MICRO INC/JAPAN NPV
LEIDOS HLDGS INC USD 0.0001
VERISIGN INC USD 0.001
GEMALTO NV EUR 1.0
PROOFPOINT INC USD 0.0001
FORTINET I USD 0.001
BAE SYSTEM ORD GBP0.025
BARRACUDA NETWORKS INC USD 0.001
BOOZ ALLEN HAMILTON HLDG C USD 0.01
CISCO SYS INC USD 0.001
IMPERVA INC USD 0.0001
FFRI INC NPV
MANTECH INTL CORP USD 0.01
RAPID7 INC USD 0.01
VASCO DATA COM USD0.001
VARONIS SYS INC USD 0.001
KEYW HLDG CORP USD 0.001
A10 NETWORKS INC USD 0.00001
CYBERARK SOFTWARE LTD ILS 0.01
GIGAMON INC USD 0.0001
ZIX CORP USD 0.01
CONTRA AVG TECHNOLOGIES NV RR USD NPV
FIREEYE INC USD 0.0001
SYMANTEC CORP USD 0.01
PRECISE BIOMETRICS AB
AHNLAB INC KRW 500.0

£241,378,509 of Assets: That is £241m

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=45727174&record_search=1&search_phrase=ISPY

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 July 2017, 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 (http://www.dmo.gov.uk/) to raise cash for HM Treasury:-
25-Jul-2017 1½% Treasury Gilt 2047 £2,500.0000 Million
19-Jul-2017 0¾% Treasury Gilt 2023 £3,162.4980 Million
06-Jul-2017 1¼% Treasury Gilt 2027 £2,867.8060 Million
When you add the cash raised:-

∑(£2,500.0000  Million + £3,162.4980 Million + £2,867.8060  Million) =  £8530.304 Million

£8530.304 Million  = £8.530304 Billion

On another way of looking at it, is in the 31 days in July, HM Government borrowed:-

£275 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 mature 2023, 2027 and 2047. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….”

Vanguard of the USA has launched a very low cost plaform for investors to access the global Equity and Bond market.

www.vanguard.com

One of the largest money managers in the world.

The funds:-

https://www.vanguardinvestor.co.uk/what-we-offer/all-products

Today, UK Mortgages PLC has paid out its quarterly dividend.

https://twentyfouram.com/en/funds/uk-mortgages-fund/

it is paying out 1.5p per share.

250,000,000 shares in circulation

Thus:

£0.015 x 250,000,000 = £3,750,000.00

That is £3.75m cash paid to shareholders

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=41993839

A yield of 3.2%

The State Oil Fund of the Republic of Azerbaijan is the Sovereign Wealth Fund of Azerbaijan.

SOFAZ is the name.

http://www.oilfund.az/

It is all stems from 1995, when a consortium was organized, known as the Azerbaijan International Operating Company (AIOC). Originally AIOC was composed of eleven major international companies: BP (UK), Amoco (U.S.), LUKoil (Russia), Pennzoil, (now Devon of U.S.), UNOCAL (U.S.), Statoil (Norway), McDermott (U.S.), Ramco (Scotland), TPAO (Turkey), Delta Nimir (now Amerada Hess of U.S.), and SOCAR (Azerbaijan).

Since then Exxon, now ExxonMobil (U.S.); ITOCHU (Japan); and INPEX (Japan) have joined the consortium and McDermott, Ramco and LUKoil have sold their shares.

It is this massive investment that has created investment revenues for the State Oil Fund of the Republic of Azerbaijan to invest its profits.

SOFAZ’s currency assets in the beginning of 2017 $33, 147 Million = $33 Billion

78.9% Fixed income and money market instruments
12.9% Equities
4.6% Real Estate
3.6% Gold.

It owns 78 St James Street, in London.

Guess who is the tenant ?

http://www.scagliolaco.com/project12.php

HSBC. A tenant that will pay the rent on time.

Investing is like a See Saw:

Buy Low, when the “see saw” is Down, and Sell High, when the “see saw” is Up

The Edinburgh Investment Trust plc is a London Listed FTSE-250 Investmen Company, managed by Invesco Perpertual.

https://www.invescoperpetual.co.uk/portal/site/ip/products/productDetail?contentId=136c6f4edefed210VgnVCM1000002e1ebf0aRCRD

It’s top 10 holdings are:
Reynolds 6.6%
British American Tobacco 5.5%
BP 4.4%
AstraZeneca 3.7%
Imperial Brands 3.7%
Provident Financial 3.6%
BAE Systems 3.6%
Altria – US common stock 3.6%
Legal & General 3.2%
Roche – Swiss common stock 3.1%

41.0% of the top 10 holdings

Portfolio breakdown % portfolio
FTSE 100 50.5%
FTSE 250 ex Inv Companies 23.4%
International Equities 15.2%
FTSE Small Cap Fledgling AIM ex Inv Companies 6.0%
Other Split Cap & Inv Companies 4.4%
Cash & Cash Equivalent 0.5%
Total 100.0%

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10171&record_search=1&search_phrase=edinburgh

A yield of 3.4%

The Custodian REIT plc is a UK London Listed Property Investment Company.

http://www.custodianreit.com

The Company’s investment objective is to provide Shareholders with an attractive level of income together with the potential for capital growth from investing in a diversified portfolio of commercial real estate properties in the UK.

130 property assets with a nationwide portfolio.
Portfolio value of £383.5m
Properties split across various real estate usage:

44% Industrial
16% Retail
15% Office
11% Retail Warehouse
14% Other: (Hotel, Restaurant, Trade Counter, Nursery, Motor Trade)

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=27772757

A yield of over 5%

Today 3i (Investors in Industry) paid out its dividend to its shareholders.

www.3i.com

18.5p per share.

What is the cost of this dividend to 3i PLC ?

http://otp.investis.com/clients/uk/3i_group_plc/rns/regulatory-story.aspx?cid=39&newsid=887837

3i Group plc has 972,826,882 issued ordinary shares, thus:-

972,826,882 x £0.185 = £179,972,973.17

That is £179 Million.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10050&record_search=1&search_phrase=3i

2.9% yield.

The peer to peer lender AssetzCapital have launched The Property Secured Investment Account

www.assetzcapital.co.uk

The Property Secured Investment Account is a way to invest exclusively in property backed loans designed to help you spread your risk across a broad range of autodiversified loans.

https://www.assetzcapital.co.uk/our-investment-accounts/property-account/

Here is how it works:-

https://player.vimeo.com/video/220451960?title=0&byline=0&portrait=0

A yield of 5.5% backed by a provision fund. Delicious.

Yesterday, Marks and Spencer the UK flagship high street retailer paid out its July Dividend.

www.marksandspencer.com

11.9p per share.

What is the cost of this dividend to Marks and Spencer PLC ?

http://otp.investis.com/generic/regulatory-story.aspx?newsid=888055&cid=228

The Company’s capital consists of 1,624,731,648 ordinary shares with voting rights.

Thus:-

1,624,731,648  x £0.119 = £193,343,066.11

That is £193 Million.

http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=10057

2.4% yield.