focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
To generate attractive risk-adjusted returns, principally through income distributions by investing in a diversified portfolio of credit securities.
Find out MoreLondon 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.
They invest in debt instruments on top of corporate bonds which are considered complex. Here's what the fact sheet says:
"The Fund will actively invest in a diversified portfolio of fixed income credit securities that exhibit an illiquidity
premium, and which the Portfolio Managers believe represent attractive relative value. These securities will include (but are not limited to): corporate bonds, asset-backed securities, high yield bonds, bank capital, Additional Tier 1 securities, payment-in-kind notes and leveraged loans."
It's an Investment Trust so ideal for illiquid assets and you have to trust they are honest and know what they are doing like any fund. They are members of the AIC which is my first IT filter. Steady return with an end of year bonus plus the occasional random bonus, 50% last month compared to previous months.
Hi all, can someone explain why this is listed as a 'complex investment' on HL, it throws up a warning questionaire when I look to purchase shares here.
Is there something inherent to the share that I need to keep in mind, or is it essentially a generic 'this is a more unsual thing to invest in' warning like it gives you with Swiss shares?
Extra big dividend this month totalling 0.75p per share. Great news for income seekers.
Full details in RNS no point copying here
". . . (Got in for 82.odd so pleased with a 6% future divi at that rate) . . ."
-------------------
For clarity, it should really turn out to be more of an 8%++ annual divi for this year based on my initial buy-in price today, but I ignored the special rate applied each October for safety.
On a US monthly divi Income trust, you could clearly see each month with sharp saw-teeth progression of the SP in its XD periods.
I couldn't discern any such regular action with SMIF that would assist economical buying in the XD periods - perhaps because 0.5p just doesn't really register in the hurley-burly of XD periods?
- Anyone figured out a system of taking advantage in such short XD periods when attempting to top-up?
It's also possible to keep repeating the test until you pass. I think it's nonsense because all investments are difficult to understand, even after reading the 200 page financial report a retail Investor is unlikely to work out what isn't being said. Some of the investments that have gone bad for me have been due to things that were hard to predict. One in particular, SONG, was basically due to the investment manager with holding important information and inflating the NAV.
SMIF basically deal in debt instruments and seem to be doing a good job. I could spend weeks researching further and still not being able to predict whether this IT would go wrong.
Hello all - Well after many a year’s investing experience my initial buy on here this morning marks a new event in my methodology.
I’m overly heavy in cash at the moment and with virtually nil interest being earnet on cash in my SIPP acc, I’ve at last solved something that’s plagued me from day one at the commencement of my investing journey from way back in the day - how the hell do I get those periods when I’m in cash, into some sort of a bank savings account when I’m heavily in cash without triggering a hefty tax bill?
SMIF and its brethren are the answer!
This will be a) the first tranche of several more in SMIF -
and b) the first Investment Income trust (or CEF, Closed End Funds as they call them in the US) of others I have my eye on - all with much higher yields. (Got in for 82.odd so pleased with a 6% future divi at that rate. Only a a penny premium paid on NAV, not too bad as checked back on those posting of paying 74p - against the NAV at those dates, and it wasn’t possible to pay less than than NAV price - even back at 74p.
It’s the same in the US - these investment vehicles are little known by the average investor. I’ve picked up a lot of info researching these CEF’s over the past month or two.
And although I’m new to Income Trusts I’m picking up things fast and have the life-long investing (trend-following) tools to monitor/control them . . . or I believe I have :)
My SIPP is with HL and had the shock of my life on trying to buy SMIF yesterday (it was late in the day so abandoned buying) as they wouldn’t let me proceed until I had taken ‘a test’.
WTF?!?
Up popped an exam paper, which they required me to take because as they said, only “sophisticated investors”, professional investors etc., should get involved in these ‘complex’ investments and they wanted me to tick which type of investors should NOT get involved with these CEF’s.
The other questions were straightforward but the type of investor sounded a bit nanny-state.
So I stuck the knife into ordinary investors clicking it’s not for them - and thought yep, me? Why I’m a sophisticated investor - see how I smoke a cigarette from a long black cigarette holder whilst lounging in front of my screen like a latter day Noel Coward, do you want me to wear my black suit and a bow tie, and drawl my name’s Bond, James Bond next?
However it was a text screen test only and the computer couldn’t see me - but I passed and was despondent that no certificate for sophistication was forthcoming. What? All those questions and no certificate? Tsk! Duuuh!
A good Company and well run. A monthly dividend with a fairly stable share price. One of my favourite stocks
Thank for your reply, I'm building a portfolio for retirement and leaning on the risky side. A 9% return on dividends, not too bothered about growth just sustained dividend growth that is covered with income. This fund seems to be good as it pays monthly but last year it had no dividend cover like most years, do you know how it still manages to pay out the dividend?
I am a DIY investor
@fraser in the past 12 months 7.87p dividends have been paid which gives a trailing yield of nearly 9.5%!
@ £0.83 a share how is this a 9% + Dividend return?
Looking to add a more on any drop towards the mid 70'.
Been a cracking income play since i bought in a while back - bought too few initially and those monthly payments are too alluring.
Going to get some more of these. Have 100,000 at an average of 73.4p.
Concise summary, thanks Lti. Happy to be holding here.atb
W
I made my first purchase in July 2022 after the share price had retreated from near the £1 level a year earlier. In anticipation of possible further falls It was not a 'fully in' investment.
I then purchased further tranches down to the 69p level, now giving me a good amount invested at an average 74p per share.
The share price was always going to move dependant on the forward outlook of long term Gilts , US bonds , bank base rates etc.
The only investment risk is if any of the underlying investments are no longer able to pay interest on their debt obligations.
I am sure that SMIF investments are carefully selected
SMIF do not have a high percentage invested in any one debt instrument - indeed their top holding Nationwide only accounts for less than 4% of the total.
Regular income returns and finally, some capital appreciation. Oh and dividend paid on time - as good as it gets. Any downside here? After nearly 2 years, the pessimist in me says too good to be true but what's to derail it...touch wood. GL all.
Customer services on email -
''The dividends were delayed as a result of a system issue experienced by our custodian, who processes the dividends on our behalf. This has meant they are currently having to manually process payments to customers and has resulted in delays. We are currently liaising with them to resolve the issue as soon as possible and to prevent further impact.''
Yes, now all good.
Month's
Last months, this months all paid up, relief.
SMIF DIV not payed today by H&L that’s V Unusual.
Me too lti. The 'complaints officer' was conveniently out of the office this morning so no joy, although a message would be passed on. I managed to remain civil but hinted at ombudsman involvement. Honestly, they're behaving like a back street second hand car dealership...
Waiting for the 1st December dividend (Jan one was due today as well).
Phoned HSBC investdirect - still no answer - being investigated as to why it is just payments from SMIF that present a problem.
W8
Thank’s for posting good news. .Today l took a look at Reddit and other chat boards , apparently quite a number of stock and etf accounts held a one of the many custodian banks HSBC use where unable to release funds for dividend payments due to as you say admin Errors. One poster stated as not receiving a £4,000 plus dive payment before Christmas from a word wide dividend etf ..now that would spoil you Christmas. I had visions visions of a very plump Free range turkey walking around a field somewhere, still wiping the sweat of his forehead after a lucky escape.
Progress of sorts. HSBC 'complaints specialist' owned up to admin errors having occurred. He assured me that he would sort it either by the end of the day or early next week. Treated like royalty I was, ahem, although actions speak louder etc.
HL look after my wife's divis Tom. In her experience they are very prompt with all payments, usually on or around the 12th of each month (HSBC take note).
I'm loath to sell SMIF as it's been a terrific income stock for me over the years. With the share price looking a tad more energetic, it's one I want to hang on to, so I hope all's settled by next week. Happy updating LTI, gla.
W
''I'm weary of this''
I would certainly also be frustrated if this were to continue - not because I need the money, but purely because I like to update my spreadsheet asap after a dividend payment day from a stock.