Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video 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.
Couple of other funds worth looking at if you're looking to diversify:
Aviva Pensions Rathbone Global Opportunities S6
Aviva Pensions HSBC Islamic Global Equity Index S6
I've had a portion of my pension portfolio invested in them for years.
Crossley - DO you stick with those funds and weightings?
That’s most of the overdone xd fall recovered; given it rose about 5p into the xd that will do nicely
Ps Zac
Best performing funds in the portfolio are, YTD:
CT American fund 9.69%
Fidelity Japan fund 7.99%
Invesco Asian (uk) Z 10.07%
Invesco Global Emerging markets 11.71%
Jupiter Merian North American Equity 11.8%
Morning folks
Hello strictly, glad you have moved over to the sector. I believe a wise move. Sold Bdev at the start of the year, RDW on the day of the merger announcement & BWY on the day before results. Only holding TW at the moment!
Zac, I too took early retirement in 2020 and spent a year extending the family home. With the additional time available to me I decided to give this game a more serious go. Only hold individual shares, no funds.
2022 -3.03%
2023 39.64%
YTD 24.12%
I stated at the end of last year this was my worse performing share last year. This year, it’s bottom but two. Only Wimps & EZY below. IAG & NWG way out in front.
Holding here for the dividend as it plays a large part in my, hopeful 17.4% average return per year. Sitting on a little more cash than usual with the HB sales although doubled my holding on EZY the other day @£5.09
My managed (Fidelity) portfolio is at 7.89% YTD
Some interesting points around differing investment strategies and outcomes. I've been investing for 25+ years. I decided to retire early in 2018 and use my investments for income. It's only really since that point that I've started to keep detailed analysis of my portfolio's performance.
I'm pretty much always fully invested and since 2019 my total calendar year returns are as follows:
2019 +21%
2020 +1%
2021 +17%
2022 -10%
2023 +11%
2024 (ytd) +8%
Probably 2019 I was 30% dividend paying assets and 70% global equity funds
Today 17% dividend paying assets 83% and global equity funds of which 20% are tracker etfs
Good luck all!
Londoner,
I didn't come back on a couple of your points...
You mentioned that you look after investments for four family members....
Up to around nine years ago, I was looking after around twenty investment accounts for family and friends who had followed me into the Game of Strictly Bricks but who'd kinda got stuck like rabbits in the headlights due to the trauma of the credit crunch....
But then I thought to start writing the Strictly Bricks blog ~ which the computer-savvy son of a good friend set up for me ~ and everyone can now manage their own stuff...
And thank goodness for that ~ I enjoy writing the blog, but spending many hours a week trading for everyone was way too much and I've now been able to let go of that job.
With regards to being whacked by the market, my losses have been different to yours....
1987, I was in an actively managed fund and, from memory, that was a hit of around 25%.
2000, I was in cash, waiting for the crash that overall stock market price earnings ratios told me was most likely coming.... I'd spent hours and hours down at Southampton library in 1998 researching old FTs on microfiche to get that information together, and then I came across Robert Shiller's book "Irrational Exuberance" which could have saved me all the bother ~ but there you go, no big deal really, seeing as I still got the right investing outcome by sitting it out in cash until March 2000...
2008...? 50% loss....? As Crocodile Dundee might have said "That's not a knife..!" I lost around 75% from start to finish, so that was effectively 50% then another 50% off that....
Yes ~ it was all emotionally, psychologically and financially rather painful.
And, as you've implied, a Corporal Jones moment...
2020, I was fortunate enough to swerve that one... I clearly remember that I'd read an article by Ambrose Evans-Pritchard in the Telegraph on Valentine's Day while out in Spain describing the coming covid tsunami... like his name, Ambrose is a rather flowery writer, and I don't find myself agreeing with him on much ~ and that's when I can get to grips with what he's on about...
But I remember thinking at the time "Blo.dy hell, he's right on this...!" and though it took a bit of a delay to build up a head of steam to take action, by the end of February I was largely out of shares (all in house builders) and into cash and Index-linked gilts (the latter did ultimately let me down to some degree but that's another story...) and the upshot was that I made just under 20% that year.
Since then, 2022 was the bad boy ~ that was a 37% loss, which I've now almost, though not completely, recovered...
But, all in all, investing just in house builder shares defo ain't for the faint-hearted, is it...? 😊
So now, at least for the time being, I've become an investing wuss and am 75% (and maybe 80% by the end of today... I'm thinking about it...?) in the big insurance boys with the remainder in Bellway.
Strictly
... So, on 12 June I foresee no change in the dividend policy & as they seem to be the flavour of the month all over the FTSE I also see a bit of a share buy back announcement.
As a reminder & for the information of those new to this share I post what the CEO António Simões said in March after he had been in the hot seat for a couple of months.
“Everything I have seen since joining the business in January has confirmed what attracted me to Legal & General. We have an authentic sense of purpose and stand out for our market-leading businesses, performance track record and strong balance sheet, delivered by talented colleagues.
Our 2023 performance reflects these strengths. We are on course to achieve our five-year targets, and demonstrated resilience in challenging markets to achieve record new business volumes in pension risk transfer, UK annuities and US protection, increasing our store of future profit. Our international assets under management and alternative assets portfolio continue to grow, as does our position in the UK defined contribution pensions market.
We must be as ambitious for Legal & General’s future as we are proud of our history. This is the right moment to take a fresh perspective, build on our track record and set out a vision for profitable and sustainable growth. I look forward to outlining our strategy and plans at our Capital Markets Event on 12 June.”
So there we have it 12 June should be an interesting day, I personally like the bit about being ambitious.
In addition, confidence in the dividend paying capacity is underpinned by the Group’s strong earnings and strong balance sheet, which has Solvency II regulatory capital of £16.6bn: a surplus of £9.2bn in excess of a capital requirement of £7.4bn.
I should add that did say the numbers include taking all dividends in shares - personally I bought LGEN pre COVID at 262p, bought more when COVID hit at 185p creating a 228p average - traded a couple of times between 280/295p - taking these "turns" and the dividends into account my average is now 161p not counting the divi due in June - LGEN is my best performing share.
Stark indeed! There are no doubt some real opportunities in today's market, the trouble is there are many bear traps too as you say, & spotting the difference is getting harder & harder. Mainly because it's becoming more & more difficult to believe what many companies are telling investors, IMHO.
Hope you've had a great time in New Zealand, safe journey. K
From a Yahoo article:
£10,000 invested in Lloyds at an average 5.3% will give me an investment pot of £48,866 after 30 years. This would pay me £2,517 a year, or £210 a month in dividends.
£10,000 invested in Legal & General at an average 8.5% will give me £126,925 after 30 years. This would pay me £10,308 a year, or £859 a month!
Krusty,
Thanks for the leads on different companies to check out...
I put the three of them on my watchlist to take a butcher's at later, but right now I'm out in New Zealand visiting family and due to fly home tomorrow morning ~ so probably not a good time for that... 😊
First glance, though, suggests they're all rather small cap for me.... I have learned that I suffer with a kind of "investing claustrophobia" if I'm stuck in a share I can't quickly trade out of if the decision takes me.
Inland Homes being the particular case in point a while back...
Having looked at the five year price graph, I suppose if you were buying Jupiter today and not a few years ago it would probably be easier to smile about it though..? 😊
I researched the whole of the FTSE100 back in 2003 and concluded, taken as a whole and to borrow from Kipling, that it was a trap set by knaves for fools...
However, back then ~ having just checked back for someone on my blog ~ LGEN was on a div yield of 4.8% and now it's nearly double that....
And Bellway was making an ROE of 20% in 2003 and now it's only on 4.1% for 2024.
Taking all the above numbers into account ~ is that difference stark, or what...?
Strictly
No tax on dividend held in an isa account you can earn as much as you like.
Fisherking, I don't pay a penny in tax on my dividends. But then, I've spent the last 20+ years diligently moving investments into ISA's for me & my wife, taking advantage of the excellent annual allowances available.
I think you need to reset your password strictly, someone is pretending to be you on LGEN & MNG!
Seriously now, welcome to the rest of my world. As well as TW., BDEV & PSN I'm also in here, MNG &, for better or worse, JUP. All had their merits at time of purchase, but it's been a bit of a roller-coaster. I bought my MNG for 205 (stop laughing) so that's not too bad, my average here is 277 so not great, & I don't even want to look at JUP although I only have a tiny holding. They've all helped supplement my income, and I'm still hopeful I might get my shirt back eventually. I don't do tips (I'm a terrible investor, mostly) but as you've stepped out into the shark-infested waters, you might want to run the rule over REDD & MEGP. Both still appear to have considerable growth potential whilst already paying a decent dividend.
Good luck, don't forget where your footings are though. K
Hi Fisherking, many thanks for your response. TBH, I'm not altogether sure how LGEN calculates the dividend reinvestment rate. My understanding is that they work out an average price based on low to high SP over the period of time between XD and payment date. I may be wrong on this and will gladly be put right. In terms of the tax situation on dividends, this is something I'm a tad more savvy. Remembering that my particular LGEN holding is kept in an ISA tax wrapper, here's the official word on the matter:
"You do not pay tax on any dividend income that falls within your Personal Allowance (the amount of income you can earn each year without paying tax). You also get a dividend allowance each year. You only pay tax on any dividend income above the dividend allowance. You do not pay tax on dividends from shares in an ISA" .
Hope this helps clarify the matter of tax on dividend payments. Good luck.
Phyl
I'm afraid your dividend s are now taxed
Unless you are on low income and I certainly don't know anyone that is on a low income can invest in the market.
I am retired employee of prudential cache securities and I have stated on here that I have been invested in LGEN
For over 5 years at least and they are not performing as some of their peers like Aviva.
I think if my memory serves me right the highest price over 5 years has been ,3.09.
Let's hope things in the world change sooner rather than later.
Dividend reinvestment seems at the time to be ok or at least it sounds that way but consider when you get your dividend the shares have recovered to
Well above your ex dividend price so therefore when your money is reinvested
You will not receive as many shares as you would as the price has risen again.
Jinkar thanks for the reference I’ll have a look. In answer to your question regarding holding Lgen, my take is that the American market is overvalued, the ft 100 appears to be on a up trend
and there is always constant chatter of take overs. Aviva was recently attracting speculation so one would assume that someone has also run the rule over Legal and General.
Even if there was a bid for another insurer the sector would perhaps benefit from any potential take over. So, it’s definitely one to hold is my view.
Something to think about.
@Finley, The Indian fund I use is AIE. It is an investment trust. Gone well over the last few years, a drop off in the last week or so. New to this board as I bought in to the dividend capture strategy in one of my ISA accounts. I thought I would have to hold over the summer at least but been surprised by upside momentum.
Does anybody have any bullet points that could persuade me to hold? My dividend capture strategy has worked so far this tax year.
GLA.
Going for a Sector is one way of doing things but it wouldn’t be mine, I prefer cover in various unless there’s a reason to avoid
Strictly, in my very humble opinion, you could have switched into something else much worse than LGEN. I'm a long termish investor here and been through the highs & lows on perhaps far too many occasions. Sometimes I question myself for holding this stock, but something tells me to persevere. My strategy for what its worth, is to secure tax free dividend payments to supplement my pension in a couple of years time. I may sell a few closer toward the time and invest elsewhere to reduce my exposure but thats a decision for another day. Good luck here.
Robleo,
I actually thought I was being a bit of a wuss investing across all three of the insurance big boys rather than just going for one, but that's because I'm new to this sector and there is a certainly sense of safetly in numbers...
Whereas, within the house builder sector, where I am more confident, rightly or wrongly, of what I am about, I have been happy to be invested 100% in a single share on quite a number of occasions when and for as long as, to my view, that company has been the stand out best value...
Of course, I'm not Warren Buffett and I haven't always called it right... ☹
But I'm happy to stand on my track record if anyone wants to judge me on it and this game has been providing me with a decent enough crust for the past twenty four years to be much more than just satisfied with it.
I wish you well though, following your own path of a blend of shares and funds...
Strictly
Londoner,
"I recall your focus in the housing sector was on tangible book value. Given Bellway’s focus on organic growth I could imagine Bellway featured in your recovery plays, but my focus is on the macro, as was my question yesterday - what’s different this time round for the house builders. While I understand your decision to rotate to a different sector, I’m left wondering why you think the traditional builders will return to their previous growth rates, albeit starting 3-years out."
My concern is very much that the house builders may not get back to their former glory.
Bellway have averaged a return on equity of around 16% for the past 40 years.... that's pretty awesome ~ to put some numbers on it, they've turned a starting BVPS in 1983 of 51p into a 2023 BVPS of 2,871p plus paid out 1,361p in dividend over that time...
How many investors have beaten that...?
Of course, you'd have had to know to be in Bellway at the outset, and the irony for me is that I sold my business (which gave me the capital to invest) in 1984 but didn't start managing my own stuff until 2000 and didn't have my house builder share epiphany until 2003.
It took me ten years of paying attention and trading on perceived value gaps to firstly catch Bellway up and then finally overtake its performance through trading.
So I could have profitably sat on my a.se for a decade and done nothing if I'd have only known about Bellway from the get go.
Not for nothing is the company affectionately known as Ghost Dog in our investing circle.
......................
"I’ve posted my macro view to the Vistry board, in which I attempted to make the case that it will be different this time for the traditional builders, hence my preference for Vistry’s partnership model. I post my ideas in the hope of receiving a response along the lines, you’re wrong and this is why!"
In sharp contrast to Bellway, Vistry is somewhat less-than-affectionately known as Battersea in our group.... as a fellow London lad, you'll no doubt understand the connotation..? 😊
We've had much discussion about this company on our blog ~ several of us agree that we see it as the triumph of jam tomorrow over past track record.
To put some numbers on it, from 1987, Bellway's BVPS went from 183p to 2,871p with 1,282p of div, whereas Bovis/Vistry BVPS only went from 185p to 600p, with 701p of div.
Over the past decade, Vistry's BVPS has stood still...
And yet, for this dubious confection, one pays a PBV of over 2.0 for Vistry compared to below 1.0 for Bellway....
Maybe they will yet emerge triumphant and, of course, it takes a buyer and a seller to make a market, and clearly others see this very differently to me...
If you would like to chat about all this on our blog, which was until very recently dedicated to house builders but now also embraces the big insurance boys ~ which has come as a bit of a shock to some of the folk on the blog ~ let me know....
Stric
Fair points, except the risks of selling before XD and hoping to buyback at a price lower than the dividend was declared by numerous people. I did that this time (not bought back in yet) and for the time being, it looks like I've missed out.
But I've done this for 3 years in a row and profited very well.
I certainly wouldn't advise anyone to follow my lead. Each to their own. What I've achieved in the past is no indicator of future performance.