Member Info for Damienmoore

Microdasys, why not just watch for now and see if the price stabilises? At the moment the knife is still falling.

TerryM1, what do you mean about the risk being "relatively low"? The company has a supermarket trolley load of debt, amounting to £700m, representing 37% LTV and making the business very sensitive to interest rates i.e. A spike in rates could see financing costs exceed rental yields. Combine this with its lack of diversification I am taking it off my watch list. Please don't misunderstand me; I respect all fellow income investors and I have been tempted, but it's definitely not a low risk investment in my opinion.

Guitarsolo, 35,000 shares is a lot to have here when you can diversify. CREI's yield is not far off this and is diversified across Geography, tenant mix, and commercial property types. If I owned 35,000 shares here I would need to check my pants every day, and maybe even wear a nappy. Too many eggs.... DM

Microdasys, if you buy in to this fund you'll be purchasing assets that:

1. Are depreciating over time as the equipment has a finite life, and thus downward pressure on NAV is inevitable.

2. Will see a gradual squeeze in cash flows over time as subsidies are tapered off.

If you buy here you'll be buying in to structured obsolescence and reducing cash flows over time.

Let's not also forget the managers invested in a project that went bust! Be very careful.

Just imagine, if £10,000 went in to a global index tracker or a Vanguard Lifestrategy Fund, you'd be so much better off. Instead, you've been watching other people make bad decisions with your money.

This is a high risk play. It takes one retailer to announce a "change in estate management strategy" for this company to be in big trouble. Their tenant market is far too concentrated.

Atlantic57, no kidding !! Incompetence is never popular.

Nail on the head, CJ66.

Truth is, specialist vehicles like this tend to be designed to benefit the people who invent them. Just stick your cash in an indexed tracker and give stuff like this a body swerve.

Interesting or horrific?

The directors can also increase their fees as the fund scales up. Greed, greed, and more greed.

I'd be more upset about the fact the operating expenses of this fund for 2024 were £4.015m compared to the £27.267m in receipts from the hybrid credit investments. The operating expenses are nearly 15% of the receipts. Of this £1.206m were "directors' fees". So the question is, for whom is this fund being managed for?

Hi Ade. Yes, unuderstood. I do like your description that it is an exchange of capital for income. However, my elaboration is that the manager is a gambler as they are hoping to place bets where they keep the income without losing a capital gain. I have known for a long time that my money is in thge hands of short-termist gamblers here. I'm just hoping they start winning their bets so I can get some of my money back.

CJ66, the dividend has nothing to do with it. Investors simply aren't going to allow incompetent people to have their hands on their money. You wouldn't let an incompetent plumber work on your bathroom, or a builder of ill-repute build your home extension. Why would you let an incompetent fund manager make decisions with your hard-earned money?

Ade, selling call options is a form of gambling, as the call option provider (in this case HFEL) is receiving a fee to sell to the buyer the option to buy stock at a certain price on a certain date in the future. If the stock increases in price above the option price the contract holder will exercise the option. In this case HFEL loses the capital gain on the stock and retains the income (the contract premium). HFEL would of course hope that the stock price moves lower, so the option holder does not exercise their right to buy. It is gambling with a downside protection, but it is gambling. If HFEL opens a lot of options and they all lose, then they are simply converting capital in to income (the option premiums) and losing any additional capital from the margin between the option price and the stock price gain.

Broomtree - How is lagging the index and having a capital decline a "remarkable turnaround"? Perhaps I am missing something. Please explain; I would be interested to have your qualification of the remarkable turnaround you are referring to.

Guitarsolo - I would disagree with your point. The holdings of the trust are deeply liquid and not the proverbial large boat you speak of. In fact the trust was able to sell and buy its holdings 1.2x in the last 12 months. I wonder why the trust has such a huge turnover ;-) ;-)

This trust is for gamblers, as the manager has increased options trading (i.e. betting on short term share price movements) and leverage. Let's hope the gambles pay off and I get some of my money back.

Why is everyone referring to Sat Duhra as the "new manager". He is not a new manager. He managed the trust alongside Mike Kerley, and presided over the capital destuction of the past several years.

There's a filter preventing the NAV disclosures showing. Just pop over to the London Stock Exchange to get the NAV:

https://www.londonstockexchange.com/stock/AEI/abrdn-equity-income-trust-plc/company-page.

Anyone happy with their investment here? I'm quite liking the dividends, although we won't see much capital appreciation for a while, I should think.

A really disappointing set of results, with an 11.9% total return significantly lagging the return for the MSCI AC Asia Pacific ex Japan High Dividend Yield Index return of 17.4%. On top of this, another year of capital decline of £6m. This is better than the £90m decline of last year, but the size of company has eroded further still. Where is the bottom?

There will be no hindsight or apology for losing other people's money. They will simply keep taking their investment management fees and saying to themselves "no matter what we do with other people's money, we get paid anyway."

Fregatr, this manager has lost £20 million of investors money when it should be invested in sensible projects that create reliable cash flows. I personally believe this is incompetence, and judging by the share price movement today, the market thinks the same.

I hope I am wrong and the investment works out for you.

You'd be mad to buy shares in a trust where the management have squandered significant shareholder funds on a speculative investment. This is supposed to be a prudently managed environmental assets trust. Unforgiveable. TRUST = GONE.

Total sum of the last 4 dividends including June's payment is £1.82. Yield remains at around 8% and I'm still a happy bunny here.