We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Bond prices weakling a bit today (including AT1's ). I would expect to see a small pullback in the nav early next week.
They have been issuing at marginally over 1.5% (last was at 172.5, rather than 172.2) so there must be a good demand.
The price seems to be almost entirely governed by the price of their equity issuance.
They have 0.96% exposure to Stonegate which has just put out a warning-
'The owner of Slug & Lettuce has warned it faces a “material uncertainty” over its ability to continue as a solvent business as it struggles to refinance a debt pile of £2.2 billion.'
Whilst it is a function of investing in HY bonds I am surprised that they have not offloaded more of the 'obvious' riskier ones over the past year. Stonegate, Signa and Thames were clearly going to have issues refinancing.
NCYF 's 4% exposure to Stonegate was my reason for dropping this fund a year ago.
Clearly not a typo! It looks like they may have moved 0.69 from income into bonds as the increase in the ex-income value jumped more than would be expected for how bonds/AT1's were performing last week. The interesting bit then will be what happens to these numbers when it goes ex-div in 10 days as there is not enough in this pot atm to cover the next divi.
I have given up asking them, I have only ever once received a reply to email. On one hand they (allegedly) want to encourage to retail investors but then seem very poor at communicating with them compared to some of their peers.
They have also been creeping the gearing up over the past couple of weeks, possibly taking advantage of some slightly weaker bond prices?
Something not quite right with the nav values today. Typo?
Date, without income, with income, income, 1.5% premium, min equity issue price.
4th 166.80 169.77 2.97 2.54655 172.32
3rd 165.96 169.62 3.66 2.5443 172.16
Their Thames Kemble bonds are down another 50% today - now sits at 12.7. However, given the previous falls it is becoming an ever decreasing percentage of the portfolio!
Signa Prime Creditors Back Restructuring Dangling 30% Payout. Creditors at Signa Development, a smaller sister unit, are scheduled to vote on a similar restructuring plan later (today)Monday. BIPS hold 0.05% in Signa Development (it was 0.5% this but devalued x10!)
Despite Altice and Signa improving there is a slight drop in Nav, probably reflecting AT1’s weakening a little since Wednesday last week.
'France’s billionaire Saadé family agreed to buy Altice Media, a unit of Altice France including news channel BFM TV, for a total enterprise value of €1.55 billion. Altice France bonds rose the most on record after the announcement on Friday.'
They still held 0.36% over two bonds at the last portfolio disclosure.
As expected did not scale back so I got all of my shares back plus some extra. In the end it increased my average holdings by 1%, as it was near zero risk it was just about worthwhile (mainly because I have a relatively large holding..).
The dilution to this years revenues was 0.05 p, I had calculated it to be 0.08 so marginally lower than expected. This figure does not include the historic reserves. The impact on the nav is hard to judge as it moves daily. Net borrowing has fallen from 10% to 7%.
I do feel that the whole placing was contrived to let one or more II's in and the wrap issue was just a sop to retail investors. Hopefully they will make good use of the funds raised for new investments and we will see a benefit from the exercise.
It looks like they were not over subscribed for the wrap issue -around £4.6M raised vers a cap of £6.8.
I took a punt and sold half of mine across two accounts at 172.3, if they have not scaled back then I will not get rich but it will compensate for the dilution of reserves and cover the cost of a short holiday. If they do scale, I should still get the excess back without a loss (especially as the nav has slipped the past few days).
I may be wrong, but it looks like they are letting the sp creep up above their typical premium so that when they issue the placing shares next week, at half the usual premium, it will look a better deal due to the 'apparent' larger discount on the share price.
I was surprised too, looked at investing in HDIV before deciding on BIPS, the placing seems to benefit Invesxo through increased management fees rather than existing holders
On the flip side does show ii's have confidence in Bips
It is a shame that they did not push it out to the divi payment date so that they could have been recycled back in.
Well I was not expecting this. I can only assume that one or more of the II's in HDIV have requested to buy into BIPS.
With a lower than usual premium to nav its hard to see how it does existing holders much of a favour (after the dilution of reserves, cost for BIPS of investing the raised monies etc), although it should reduce marginally overhead charges /per share (in theory!).
At least it is after the current ex-div date so that is not diluted...
The div is the reason I bought, the capital gains are a bonus 🙂
It looks like capital gains have maxed out for now. Still accruing income at a rate more than fast enough to cover the div though.
Safe and boring definitely has its place for me when it comes to providing a pension income.
I moved from a more speculative growth pot of individual shares to a more income focussed IT based one last summer in preparation for my partner retiring next year (although this may now be pushed back).
I like divi paying IT's as they provides a steady income without me having to make the decision as to when to top slice.
Given that they also have revenue reserves the amount you need to keep in cash in case of a protracted down turn is arguably less than with some other strategies. Platform charges are also lower than OEIC's on the one I use.
I don't change things much but I will move the odd chunk around if I think the price or macro considerations warrant it. I also have some growth orientated IT's in the mix to provide some capital gains.
Total returns since last August have been 11.2% which compares reasonably to four mixed asset income funds from the the main names that I bench mark against (the worst -Fidelity is actually 2% down!)
I did keep enough back for a reasonably sized small cap pot to keep me entertained but, with the odd exception, that has not gone so well this year, however it has been very good at times in the past and is far more fun than premium bonds....
Only a small holding for me, sold my shares in Shell after holding for many years and bought gilts TR38 below par paying a coupon of 4.75% for the next 15 years for retirement income - safe and boring hopefully ;-)
Invested in Bips and a few FTSE 100 companies offering high yields which will hopefully benefit from interest rates falling next year
First time investing in a investment trust so bit of a learning curve for me, so happy to read your posts and increase my knowledge :-)
Thanks, glad it is useful. I have a large holding in Bips and I find that writing makes me focus on the details rather than just following it with a cursor look.
A couple of the banking bonds I follow (not CoCo’s) that are held by the fund are now back close to their February 2023 highs (clearly still off from historical highs though), this is not reflected by the AT1’s (from the AT1S) which are still around 14% off this level. As circa 25% of the fund is in AT1’s it indicates that there is good scope for further increases in the share price as confidence in this sector continues to return.
Thanks for posting Monkshood, just wanted to let you know your posts are appreciated :-)
The next quarters income is now covered.
It would have been nearly a couple of weeks ago but 0.34p 'disappeared' from the income account around the same time as the big drop in the Signa bond (between 2nd and 3rd Nov). I did email to ask where it went - fees/reserves /reinvested? but as always it is hard to get any response from Board or Investment Managers.
Signa have filed for insolvency. Their bond (DE000A3KS5R1 held by Bips) has dropped from 60 down to 10 although most of this fall was at the start of the month. It was (at the last portfolio update -August ) 0.53% of holdings so will have taken about 0.4% off the nav although this should have been priced in by now.
Sterling Index back up to around 3200. Also nice to see that Santander got off a $2.5B issuance yesterday at 9.625% . This follows UBS's oversubscribed $3.5B issue a week ago and another $1.75B for Barclays this week which settled at a similar rate to Santander. It looks like the market has finally settled down now after the Credit Swiss problems in the Spring.
From a recent presentation by the fund manager I think that BIPS is currently holding circa 25% in CoCo's.
A good point to get in. Rates look to be topping out and the indicters I use as a proxy for Bips have all been heading back up after the recent lows.
Hi Guys,
Bought in this morning, first time for me to own a investment trust, hopefully will be a good long term investment, bonds prices have taken a bit of a kicking with inflation and interest rates up, but hopefully turning the corner now, with European Inflation down to 2.9% in October
However European growth is also down, which could mean we are heading for a recession, hopefully shallow and it won't last long
Anyway enough of me rambling, good luck to all holders
After bips went ex div in July it still had 0.83 p of income showing, after going ex div yesterday this has increased to 1.25p.
So they are comfortably going to have enough income for a good divi cover for the year as well as extra to top up the shareholder reserves again this year.