Member Info for Dminvestor

Can anyone tell me if I live in the uk whether to buy Pfizer in London using the ticker OQ1N.L or should I buy in New York using the ticker PFE ? And in either case can I get the reduced withholding tax on my dividends ? Many thanks

I am reticent to sell this share as I have approx 15,000 shares with an acquisition price of 3.15 and while I am happy to see the shares recover a little, I am worried about the high exposure to China. The severe risk of China invading Taiwan which seems ever more likely would lead to a crash in the share price and probably would never recover. If I add together the exposure to China,Taiwan and Hong Kong it’s circa 40%. Is this trust just to risky? Any views

Spar hawk

Many thanks for your link to lemon fool. It’s a good site to gauge what others are thinking. To minimise my risk of the pref’s being redeemed at par (worst case scenario) I have concentrated my holding in preference shares on ones that are closer to par such as STAC and GACB

I would like to add another pref share to spread my risk but cannot find one attractive enough

And so fourth

Thanks for the info. Seems we have this to look forward to :-((

No loss in capital but loss of high yield and not many options to replace it without risk

Spyhawk

Many thanks.

Also just read about bank of Ireland buying out Bristol and west preference shares. Seems they are being forced to sell ( if I understand it well enough) by year end no loss of capital but loss of a generous yield for the future.

Rhinocol

Many thanks. The buy out of Bristol and west preference shares is interesting. It seems that the holders are being forced to sell by end of year if I understand it well enough. Ok without loss of capital but loss of future high yield.

I have quite a few of these myself but there is a cloud on the horizon in 2025. As I remember, in 2025 these preference shares cannot be included in the banks tier one capital and therefore there will be pressure to replace them or buy them out. What such terms would be anyone could guess but given the past debacle I can’t think we would leave us worse off. Could be a loan stock offering a yield similar to what we earn today? ( this is what Lloyds bank did a few years ago which was great until they cancelled the loan stick a few years later at an unfair rate to the holders.

I am optimistic in that given the past debacle any buy out will be fair and therefore we should enjoy the returns for now

I have quite a few of these myself but there is a cloud on the horizon in 2025. As I remember, in 2025 these preference shares cannot be included in the banks tier one capital and therefore there will be pressure to replace them or buy them out. What such terms would be anyone could guess but given the past debacle I can’t think we would leave us worse off. Could be a loan stock offering a yield similar to what we earn today? ( this is what Lloyds bank did a few years ago which was great until they cancelled the loan stick a few years later at an unfair rate to the holders.

I am optimistic in that given the past debacle any buy out will be fair and therefore we should enjoy the returns for now

I have quite a few of these myself but there is a cloud on the horizon in 2025. As I remember, in 2025 these preference shares cannot be included in Aviva’s tier one capital and therefore there will be pressure to replace them or buy them out. What such terms would be anyone could guess but given the past debacle I can’t think we would leave us worse off. Could be a loan stock offering a yield similar to what we earn today? ( this is what Lloyds bank did a few years ago which was great until they cancelled the loan stick a few years later at an unfair rate to the holders.

I am optimistic in that given the past debacle any buy out will be fair and therefore we should enjoy the returns for now

I have quite a few of these myself but there is a cloud on the horizon in 2025. As I remember, in 2025 these preference shares cannot be included in Aviva’s tier one capital and therefore there will be pressure to replace them or buy them out. What such terms would be anyone could guess but given the past debacle I can’t think we would leave us worse off. Could be a loan stock offering a yield similar to what we earn today? ( this is what Lloyds bank did a few years ago which was great until they cancelled the loan stick a few years later at an unfair rate to the holders.

I am optimistic in that given the past debacle any buy out will be fair and therefore we should enjoy the returns for now

Further to my last post on a 5 year view it’s worse than I expected as share in aug 2018 was £3.57 and now £2.22 ie a decline of £1.35 measured against dividends of £1.17

On a nine year view the share loss is £1.10 against dividend income of £1.98

The decline in the share price this year being £0.59 has really hurt the returns

I have a large holding in HFEL and have held for ten years with a purchase price over £3.00 a share. I am very disappointed with the share performance. The dividend income of the trust is artificially boosted by dividend washing ( buying the share cum dividend and selling xd ) Great for income but at the expense of capital. I have now taken the view that my quarterly dividend contains a very large element of a capital return and I expect the share to continue to go down further. You need to look at the total return numbers I.E. including the dividend which is slightly positive if you net 40% share decline over 5 years with a dividend income just about in excess of that decline.

I have found on page 15 of the 2022 accounts a useful ten year summary where it splits revenue and capital return but before their own charges I assume. This shows a capital and income gain of 190 versus a dividend payout of 218. The figures for 2023 are liable to make the cumulative numbers considerably worse I am afraid

So I suppose I am holding on in the forlorn hope that china will bounce back which will lead to a partial recovery in the share price. I certainly will not increase my exposure further.

I have read all the posts this year and looked at the accounts for 2022. The decline in the value of the net assets of the business in 2022 was huge at £22.6 million plus another £4.5 million of exchange losses. This equates to over 17p per share. We don’t know how much of this loss is due to dividend washing which in turn increases the dividend income but creates a capital loss. It therefore makes it more difficult to assess the true performance of this trust. I would much prefer the benefit of the capital washing be attributed as part of the capital element of the trust I.e taken to reserves rather than boosting the dividend payout. I would accept a lower dividend payout in turn. We would then at least know how the trust is really doing, since at the moment the dividend includes a large element of a capital return. In my own mind I am think that in the absence of any information from the trust on this, I shall treat half my dividend as a capital return and therefore not income I can spend freely. To take this to its logical conclusion there will be no capital value left assuming that the underlying investments don’t rise significantly in value.

I don’t understand why you say there are charges to hold this share. I collect my dividend in full with no deductions.If you are paying any tax within the ISA your broker sho7ld be getting the tax back I believe