The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Michael Spencer, the former Tory treasurer and founder of ICAP, has sealed a deal to sell his online spread betting firm, City Index, to a US rival for $118m (£73.9m). City Index , which is owned by Mr Spencer's private vehicle IPGL, has been bought by American group Gain Capital Holdings. The deal will allow the combined company to serve 235,000 customers in more than 180 countries with annual trading volumes of over $3 trillion.
Pimco: net of Gross: On Friday, as Mr Gross announced he would leave Pimco, which he founded in 1971, yields were at 2.5%. That is called having the wind at your back. But he did not just drift. He outperformed his benchmark by a percentage point a year. That difference, small though it may sound, compounds quite nicely, thank you. His departure has a Wagnerian flavour. He had feuded with his famous colleague Mohamed El-Erian; he has made some bad calls in recent years; assets have been leaving TRF ($71 billion worth in the past 16 months, leaving a mere $221 billion behind). There was noise about an SEC investigation of an exchange-traded fund he managed just this week. There are, however, substantive questions for the three companies that will be affected by the move: Allianz, Pimco, and Mr Gross’s new employer, Janus Capital. Allianz, the German insurer that has owned Pimco since 2000, should spin it off or sell it. This was true before Mr Gross left and, while the timing becomes trickier now, remains so. Having the companies together creates modest benefits, if any. The two are managed separately, and Allianz’s valuation does not reflect Pimco’s value – a classic conglomerate discount. Pimco faces a different problem: managing a very big pile of money at a time when most assets are priced for modest returns (the “new normal” as Mr Gross liked to put it). The crucial question is how aggressively Pimco’s new leaders shift out of bonds into other asset classes.
up more than 10% in 3 days, lost half of that in 2 days. i was contemplating to hold onto this due to the great entry price i had but in the end, i sold out yesterday because other shares are not performing well and wanted to lock in some profits. until closer to the ex-div date, i'll look into ICP again. good luck, guys.
good on ya mate. looks like we both got it right on time. not sure why but i can only suspect there is a large institutional order to fill.
A great week, have been watching for a while and came in on Monday, but not exactly sure what is fuelling the rise?
alright mate u look like u're having fun talking to yourself. oh yeah? really! well, toppa the day to ya. i'm off to the exchange to buy me some GSK shares. righty ho!
broke past previous resistance. this is heading closer to 500p.
usually kinda slow to rise, but this is quite a high spike, about 4%? to 5%?
looks like a good level to enter now.
there's nothing that can quite beat the feeling of logging on half an hour before closing to see that a share you hold looks like it is going to break previous trading range. except surfing. :)
although it's been some months, i am happy that the patience is finally paying off....glad to see this breaking past previous short term highs. still an amazing yield at this price.
Not much to take from ICP's third quarter trading update today. I think management have to drive harder to grow their business segments which operate in some attractive markets. PS: I own these shares
Positive Points: Intermediate Capital Group and Nomura Holding Inc have agreed to set up a mezzanine debt fund in Japan, citing increased demand as the world's third-largest economy recovers. Each company will allocate 10 billion Yen to the initiative. Operationally, strong fundraising momentum across products was reported, with 2.4 billion euros committed to date. ICG anticipate another record fundraising year for third party assets under management. The hike in pre-tax profits was primarily due to the inclusion of £110.1 million recycled to profit from reserves. A progressive dividend policy continues to be pursued. The total dividend for the last full financial year was increased by 5.25%. An interim dividend of 6.6p has been proposed.
Negative Points: While ICG's investment portfolio remains broadly resilient, a reducing number of weaker assets continue to underperform, reported management. Total group Assets under Management (AUM) declined by 6%. The group has exposure to interest rate and foreign exchange risk. A marked deterioration in economic conditions would impact on group performance. The company has substantial exposure to euro-denominated assets.
Financial Highlights: Intermediate Capital reported a rise in pre-tax profit to £155.3 million, from £39.6 million in the same period a year earlier. The period saw high levels of balance sheet realisations. As a consequence, total assets under management were down 6% to 12.1 billion euros since 31 March. An interim dividend of 6.6p was declared, an improvement on the 6.3p paid a year earlier. Overall group debt improved from £1.1billion to £740 million in the period.
Interim results: Specialist asset manager ICG and Nomura Holdings Inc have agreed a 50:50 partnership to facilitate the future structuring and distribution of new domestic mezzanine investments and funds. The funds will be managed by a local Japanese fund management company that will be established. Nomura and ICG have agreed to allocate 10 billion Yen each to the initiative. It is planned that a fund would provide institutional investors opportunities to invest in mezzanine debt with financial sponsors and in growth/expansion capital. Alongside the announcement, ICG reported first-half pre-tax profits of £155.3 million, up from £39.6 million in the same period a year earlier. The company's assets under management shrank 6% to 12.1 billion euros, primarily because of a reduction in the value of its investment portfolio. Meanwhile, Intermediate Capital said it has seen strong fund launches, raising 2.4 billion euros. These included ICG Longbow's third fund closing at £700 million, Senior Debt Partners' strategy on target to close in excess of 1.5 billion euros, and two European collateralised debt obligations totalling 950 million euros were also raised. "We have shown excellent fundraising momentum during the period. We are approaching the final close of our Senior Debt Partners strategy which, when reached, will be the third successive product to achieve its maximum size. Our funds are also investing on schedule and we have a solid pipeline across all of our markets" Christophe Evain, Chief Executive, said in a statement
Positive Points: The group said its mezzanine portfolio performance continued to be broadly resilient, despite the challenging economic environment. ICG closed two deals in the period with its European Fund V supporting a management led buyout of ATPI (a UK travel based management company) and acquiring senior debt in an existing portfolio company - Icopal. Furthermore, two other deals were signed, one in the UK and one in Norway, which are expected to complete before the year end, subject to regulatory approvals. ICG also reported that its credit funds' performance are as expected, delivering strong returns in the context of a rising market. A strong balance sheet was reported by management with available cash and unutilised bank lines of £406 million at 31 December 2012. A progressive dividend policy continues to be pursued. When interim results were declared in November 2012, the Board declared an interim dividend of 6.3 pence per share.
Negative Points: The present volatile market conditions could impact on ICG's investment and fundraising activities. A marked deterioration in economic conditions would impact on group performance. The company has substantial exposure to euro-denominated assets.
Interim management statement: In a brief update, specialist asset manager ICG announced a 7% growth in assets under management since the end of September, and a 13% rise since the start of the financial year to 12.9 billion euros, driven by good progress in fundraising for its mezzanine funds. Fundraising on ICG Europe Fund V was seen at its maximum permitted size of €2.5 billion, and a first close of £212 million on ICG-Longbow Fund III was reported. These numbers included €500 million and £50 million, respectively, committed by ICG. Management added that its credit funds are performing as expected and delivering strong returns, notwithstanding a mixed macro picture for 2013. Elsewhere, within its investment company business segment, the group stated its portfolio performance remained broadly resilient, mindful of the prolonged economic slowdown
"We are announcing some pleasing progress for our Fund Management Company. The fundraising for ICG Europe Fund V, which is already 15% ahead of our €2bn target at €2.3bn, will result in this fund being our largest ever mezzanine fund and the largest fund of its type in Europe. This is a considerable achievement in a very difficult fund raising environment and supports our ambition to grow our fund management franchise. "Institutional investors are increasing allocations to credit as they recognise the contribution this asset class can make to the overall yield of their portfolio. We are confident that this trend will continue. The success of ICG Europe Fund V, with a highly diversified global investor base, is an endorsement of our strong position in the credit markets and evidence that our recently enhanced distribution capabilities are already delivering benefits." The group said that in the first six months of the financial year it invested £469m on behalf of the mezzanine funds and ICG, which is more than the £406m invested in the whole year to March 31st 2012.
intermediate Capital Group, the specialist investment firm and asset manager, has reported a significant drop in half year group pre-tax profit (PTP) as a result of the difficult economic climate, but still announced a 0.3p increase in the dividend payment to 6.3p. Although fund management company PTP edged £0.1m higher to £17.2m in the six months ended September 30th, investment company PTP declined from £91.7m to £22.4m, giving overall PTP of £39.6m (2011: £108.8m). Earnings per share more than halved from 21.6p to 10.3p. In addition to the economy, the group also attributed the reduction to PTP to a slow exit market, which it said has resulted in a low level of realised capital gains. It also took material provisions for two large assets which are undergoing restructurings. The investment portfolio was also lower, decreasing from £2,414m to £2,344m year-on-year, while third party assets under management fell from €9,165m to €9,127m over the same period. However, assets under management rose 6.0% to €12.1bn in the first half of the year, up from €11.4bn at March 31st, with continued momentum into the second half. This includes €9.1bn in third party funds. Chief Executive Officer Christophe Evain, said: "The difficult economic climate has negatively impacted our results for the period, leading to provisions for two large assets and a low level of realisations. The remainder of the portfolio is broadly resilient but the economic environment remains volatile.
Positive Points: Fundraising within ICG's Europe Fund V was reported as above target, with €2.3bn of commitments received to date. The group said that this will result in this fund being its largest ever mezzanine fund and the largest fund of its type in Europe. A strong balance sheet was reported by management with unutilised debt facilities of approximately £442 million following a further £80 million retail bond issue in September. A progressive dividend policy continues to be pursued. The Board has declared an interim dividend of 6.3 pence per share in the latest period.
Negative Points: Net impairments for the period of £64.8 million (2012: £28.4 million) were reported. Provisions were taken on four assets, including £11.7 million relating to impairments of shareholder loans and £70.2 million relating to two large mezzanine assets. The present volatile market conditions could impact on ICG's investment and fundraising activities. A marked deterioration in economic conditions would impact on group performance. The company has substantial exposure to euro-denominated assets.
Financial Highlights: Group profits before tax in the six months to 30 September were £39.6 million, compared to £108.8 million in the first half a year earlier. Assets under management rose 6% to £12.1 billion and included £9.1 billion of third party funds. An interim dividend of 6.3 pence was declared.