Member Info for haggismchaggis1

Documents:

https://www.google.co.uk/search?&q=site%3Aschroders.com+AFC+UK+Smaller+Companies+Fund&oq=site%3Aschroders.com+AFC+UK+Smaller+Companies+Fund

Fund update: Q4 2020

Performance overview
The fund generated a very strong absolute return, but underperformed the FTSE Small Cap (ex IT) index, which enjoyed an exceptionally strong performance over the period.

Drivers of fund performance
Key individual contributors included mobile advertising platform provider Tremor International, hydrogen cell manufacturer AFC Energy, travel and logistics group Jet2, digital inkjet technology specialist Xaar and Invinity Energy Systems, a manufacturer of vanadium-based electricity storage solutions.

We took some profits in a number of positions which performed very well in 2020, including AFC Energy and Avon Rubber.

Final Report and Accounts
May 2020

AFC
Holding 5,600,00
Market Value = £1,305,000
% of net Fund assets = 0.32

ITM
Holding = 0

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Schroder Institutional UK Smaller Companies Fund
Interim Report and Accounts
August 2020

Risk profile 6 out of 7 (up one level)

AFC
Holding 22,875,000
Market Value = £4,735,000
% of net Fund assets = 0.91

ITM
Holding = 0

Schroder UK Smaller Companies Fund
Interim Report and Accounts
November 2019

Investment objective and policy
The Schroder UK Smaller Companies Fund (the ‘fund’) aims to provide capital growth in excess of the FTSE UK Series Small Cap ex Investment Trusts (Gross Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of small-sized UK companies.
The Fund is actively managed and invests at least 80% of its assets in equity and equity related securities of small-sized UK companies. These are companies that are incorporated, headquartered or have their principal business activities in the UK and, at the time of purchase, are similar in size to those comprising the bottom 10% by market capitalisation of the UK equities market.

Review of Investment Activities
Hydrogen cell manufacturer AFC Energy and ITM Power, which makes electrolysers to extract hydrogen from water, performed very well. Both reported progress commercialising their technology, which resonated with the market given the policy focus on applying clean energy technology more widely.

Risk Profile
Level 5 from 7 (more towards higher risk higher reward)

Portfolio Statement

AFC Energy
Holding at 30.11.19 = 41,133,801
Market Value = £7,651,000
% of net Fund assets = 1.57
AFC is the top holding under Oil & Gas sector, ITM also held from this sector as below
AFC is the 14th biggest percentage holding of the Fund, out of 100 companies

ITM Power
Holding at 30.11.19 = 1,779,152
Market Value = £1,199,000
% of net Fund assets = 0.24

Total Fund Value £488,386,000

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Final Report and Accounts
May 2020

AFC
Holding 5,600,00
Market Value = £1,305,000
% of net Fund assets = 0.32

ITM
Holding = 0

--------------------------------------------

Schroder Institutional UK Smaller Companies Fund
Interim Report and Accounts
August 2020

Risk profile 6 out of 7 (up one level)

AFC
Holding 22,875,000
Market Value = £4,735,000
% of net Fund assets = 0.91

ITM
Holding = 0

So, where did Schroders put all the AFC stock? Well here is one Fund where AFC stock is held, and I'm posting a timeline for the documents from Schroders Website. You can see the documents for yourself from the link I am posting at the end of the information.

This Fund does not appear to hold all of the AFC stock that Schroders have/had, so there is more in other Funds somewhere.

What can we conclude from this information?

1) The Fund does have restrictions on the MCap size of companies it can buy (Exactly as I told you is the case with Funds having MCap restrictions like £500m!!), so those claiming otherwise are proven wrong again. "at the time of purchase, are similar in size to those comprising the bottom 10% by market capitalisation of the UK equities market."

2) The Fund is set up with the aim of beating the FTSE UK Series Small Cap ex Investment Trusts, it failed to do that last year! Sorry, but you can only blame the Fund Manager for that, as the Fund choices to buy/sell/hold are his responsibility)

3) The Fund held 1,779,152 ITM at the end of 2019 but sold them by May 2020, missing out on the huge recent upside.

4) In 2019 the Funds AFC holding represented 1.57% of the Fund, 14th highest. At some point they would want to rebalance the Fund by lowering that percentage, once in profit on the shares, so selling was inevitable. By May 2020 they had dropped to 0.32%. After the placing in July 2020 they were back up to 0.91%.

5) In the Q4 update they stated they had already taken some profit on AFC, but presumably they had not sold down by 1% of AFC, so did not have to report it. This has to be allowed for when reading the latest Schroders holdings RNS.

6) The Fund Managers has highlighted a few times how well AFC has done commercialising it's technology and it's share price performance.

7) Just because a Fund sells some of it's huge holding, does not mean it is bad for the stock, especially when the selling is only feeding demand, not forcing the share price down like a distressed seller would.

The other thing affecting the stock market this afternoon would have been the announcement that Boris was going to do a press conference about increasing covid restrictions, that could definitely have spooked the market.

https://www.standard.co.uk/business/markets/uk-gdp-ftse-shares-live-b899825.html

Actually, it looks more like a market wide blip down with a bottom at 15:30 when AFC dropped. Look at the FTSE-100 chart, BARC, LLOY, HSBA, BP., even CWR and ITM, all have the same dip and recovery at 15:30.

Garonne, after 12 years of holding the stock, I'm definitely not bailing when it's only just started to move towards my target price.

Schroders can sell too soon if they have to, they are playing with other people's money and have to take profit when they can, I don't, it's my money, I make my own choices.

P.S the RNS has had ZERO effect on Tradegate.

So I've just caught up with the 55 posts since I went for a run, and what's my analysis?

Some of the usual scaremongering drivel that always accompanies someone like Schroders reducing their holding

Some typical traders saying they'll sell out on Monday in the hope they get loads of others to sell out, meanwhile said traders will jump right back in as close to the bottom of the dip as they can

Some longs that can smell the bull***t a mile away, clearly pointing it out

Some knowledgeable posters telling any readers exactly how it works when someone like Schroders with a big chunk of cheap stock takes some profit, and why.

Here's my 2p worth:

Schroders have a lot of cheap stock from placings, they are looking at a big profit on that stock.

Did they trash the price in a huge hurry to get out of the door with their profit? NO

Did they sell massive chunks that everyone would see, that would scare people out of the stock and make the price plummet? NO

Did they feed shares into a rising market to meet the high demand since 15 December, including from other ii's? YES

Did they keep an orderly market for the stock? YES

Does it matter that they sold? NO, because there were buyers!! All they did was feed demand!!

Does it matter if they keep selling? NO, because the MCap is being maintained at £500m, it must be clear now that they set this as their point of selling, because they know that it's also the point where other big ii's are buying the stock.

Do I care if anyone here sells out on Monday? NO, because big news could come Tuesday and it will be them kicking themselves, not me.

I have posted my target price for the end of this year, and I believe the stock will reach it whether Schroders sell their entire holding or not. I won't be selling for a few years anyway, so this is all a load of unnecessary noise really.

Well that's a HUGE uncrossing trade, and they paid a premium for it over the closing price!

1,217,226 at 77.7p, with the closing Bid 76p and Ask 76.6p, so paid 1.1p more than the closing ASK price to collect over 1m shares!!

"No doubt, somebody is making a lot of money out of this."

Yeah, the MM's! :-D :-D

Looking at buys vs sells on ADVFN, the MM's have squeezed out nearly another 1m shares today, I guess that tree shake was to help that. The 1m has to go somewhere (as per the big late reported trades I keep posting), they can't go into a black hole, so look out for late reported trades at 5:30pm, or on Monday during the day.

I do wonder if the move to publishing the filled orders to 12:00 the next day was because people like me were looking for them at 5:30pm and posting them one BB's? Either way, they can't hide them!!

This is why PLUG and FCE are down. Still many multiples of the AFC MCap though!!

https://www.investors.com/news/plug-power-stock-fuelcell-stock-sink-analyst-warns-limited-upside/

DesertWolf will still be saying there's no communication from the company (I do wish he'd change the record!) but here goes with some of the news items I've found today. Some really good places for AFC to get noticed, just look at the site names.

Institutional Investing In Infrastructure
https://irei.com/news/afc-energy-engineering-consultancy-sign-hydrogen-generation-agreement/

Green Car Congress
https://www.greencarcongress.com/2021/01/20210115-afc.html

Transport And Energy
https://transportandenergy.com/2021/01/14/afc-energy-partners-with-ricardo/

Renewable Energy Magazine (links out to EnergyDigital)
https://www.renewableenergymagazine.com/todays_press/latest-renewables-news-hot-off-the-press--3--1-1-1-1

EnergyDigital
https://www.energydigital.com/renewable-energy/afc-energy-signs-hydrogen-fuel-cell-agreement-ricardo

ShipInsight
https://shipinsight.com/articles/ricardo-teams-with-afc-energy-on-hydrogen-power/

Power Links (under Hydropower)
https://powerlinks.news/hydropower/news/afc-energy-hooks-ricardo-strategic-engineering-collaboration

Power Links (under BLNG)
https://powerlinks.news/blng/pr/afc-energy-ricardo-team-hydrogen-fueled-power-propulsion-systems

Japan News site
https://www.minyu-net.com/prwire/PR202101159842.php

FuelCellWorks
https://fuelcellsworks.com/news/afc-energy-announces-strategic-collaboration-with-global-engineering-consultancy-ricardo-to-develop-global-applications-for-hydrogen-power-generation/

LOL!! :-D :-D

Garonne, there you go again with that bit of negativity. The question is, can you ever write a post that doesn't have that negative twist in it somewhere??

Garonne, better still, turn your computer off and come back in a month or 12.

I'm sure you said you were long term, so what difference does it make to you if the share price goes up 5p this week or down 5p?

Surely what matters to you is that the SP is at £1.50 at the end of the year?

Or do you just feel like you have to throw in some doubt and negativity every day?

Who makes the most money for an MM?

1) A private investor that does 50 trades a year at an average £5k each

2) An ii that does several IPO's a year at £100m average, plus buys big chunks of stock worth £100k every day

Go figure!!