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Zac,

In theory, yes, as Eccles succinctly described it. But, the SP is subject to so many external factors. Not least of which is the lack of interest in the UK market as a whole and this sector in particular. Whatever good work the BOD are doing with that 45% (and it looks to me that they are doing a good job) it won’t have much impact on the SP until market attitudes change. Dull for those needing to trade or sell in the short term but great for those looking for income. I’m happy with the SP remaining low as it means I can buy more income at a good price. Can you tell me of another ftse 100 that has the next 6 years of profits already booked?

Having said that some of my funds have shown tremendous growth in the past year (a few of whom you have written about on this bb). But isn’t that the point of a portfolio, however unbalanced.

GLA

The traditional view was that well managed money should double every 10 years on a total return basis.

At current prices and forecast dividends for LGEN you should achieve that with plenty of time in hand. Plainly the divi is doing most of the work and normally I’d be worried about a company’s ability to maintain or grow the dividend at this level but I take a lot of comfort from the fact that they have already booked the next 6 years profits.

Thanks Meconopsis for a really useful counterpoint view.

The NAV argument in particular is strong and, whilst I’d like to see the discount widen a little more before I top up, I am sure that it will in time at least return to par or better. I am happy to buy the assets for a discount and to collect the, albeit reduced, dividends whilst I wait for the discount to turn into a premium.

The minority might not be as tiny as you imagine.

Thx. How did I miss that? I think I’ll take a day off….

Hi BeReyt,

The Barclays rating isn’t showing yet on this site. Can you post a link to it?

Many thanks

There must have been quite a deterioration in performance if EPS is to approx halve in h2. In their half year results last Aug they said they were still on track to meet their 5 years goals for 2020-24 which included increasing the dividend by 5% pa and growing the EPS at a faster rate than the dividend.

All will be revealed in early March.

Mildly worrisome though.

Pokerchips.

Many thanks for that. Interesting read.

Can anyone explain in layman’s terms what the introduction of offshore reinsurance means in real terms? I get the worries about the reinsurer being either too small or outside the cover of PPF but am interested to know what cover is being provided and the benefits vs the risks.

There was a comment on the times article comparing it to CDO’s (which seems far-fetched).

Probably not helped by Jo Cumbo’s piece in the FT yesterday (mon 4th) about the risks of the PRT market.

I haven’t seen the article but have heard about it and am keen to hear more. Can anyone précis it?

I have asked the same question on the PHNX board.

Many thanks

I gather that Jo Cumbo wrote a piece in the FT on Mon 4 Feb 24 outlining the risks of the PRT market.

I missed it and don’t have a subscription. Can anyone post a précis or explanation?

Many thanks

Poker,

All index funds will own all sorts of sin stocks that might trouble the consciences of the righteous. Not much one can do about that bar not buying index or other funds unless they are specifically designed to avoid such companies.

That doesn’t detract from my (new) view of the potential of the Indian economy to prosper and Jupiter India to grow from here.

Pokerchips

Agreed.

Though it is often hard for a private investor to make those calls and so there is a lot to be said for pound/cost averaging.

Once I am persuaded by the fundamentals of a stock or fund I will initiate a holding and then over a period of time add to it in small (£1k-5k) chunks. If I started at too high a price (as seems so often to be the case) I will average down over time.

As I tend to buy and hold rather than trade this works well.

I have bought LGEN in a range from 180 to 296p and have an average of 235p now. I will continue to top up on dips and as funds allow. I’ll probably still be holding when I check out and look forward to many years of divis.

I rather like the fundamentals of Jupiter India (thanks Anon3) and have initiated a holding. I’ll top up over time until I have reached my target % and then sit and wait to see how it performs. If I buy over the course of a year I should end up with a fair average.

DYOR, GLA, TFIF etc

My thoughts too. Especially as retirement is close.

I topped up this am at 506p. Happy to keep doing so and holding after yesterday’s update.

Thx Anon. If only there were a bb for Jupiter India

Wouldn’t dream of investing directly in India.

Am down to 10 direct investments in Uk co’s and apart from US I would only invest overseas via funds.

I might be concerned about some of the other letters in BRICS but not so much the I.

As Anon mentioned, the demographics are interesting. 1/4 of the world’s population under the age of 25 live there. The potential for long term growth will be enhanced by the pro business stability of a continuing Modri government.

So, am happy to have 1-2% of my portfolio invested in an India focussed fund.

If anything, I suspect I will worry more about being so overweight in LGEN.

Anon, btw which of the classes do you have? X or D?

I have realised that I have virtually no exposure to India bar via a world index fund and agree that its future looks interesting.

Aware of the risk of a pull back, especially if I start buying it, but as I tend to hold for a long time and buy piecemeal I relaxed about that.

Will it look like a stupid decision in 10 years? Rather like LGEN, I suspect not.

DYOR etc

Apologies Anon. I was a bit hasty.

I was looking at this on my phone on the train and didn’t scroll to the right. That was, of course, the pandemic year.

I see that it was up an impressive 40+% last year. I will do more research on a larger screen.

I have also come to the conclusion that I need glasses to read my phone.

Is that the Jupiter India that was down 4+% last year?

Thx Moneybox.

I will take a look at it