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Personal Assets v Capital Gearing v RICA?

Closed-end funds and OEICs
Dod101
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Re: Personal Assets v Capital Gearing v RICA?

#506039

Postby Dod101 » June 9th, 2022, 11:56 am

dsc11 wrote:The split pleases me as with a modest holding I'll be able to automatically reinvest dividends on the platform I use ... And the report alluded to this being the rationale.


The dividends from Personal Assets have always been modest so reducing the price per share will allow for dividends to be reinvested where currently it is nearly impossible with only a very modest shareholding. Might also improve liquidity I suppose.

Dod

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Re: Personal Assets v Capital Gearing v RICA?

#506111

Postby AWOL » June 9th, 2022, 4:47 pm

I would factor in fees which are known unlike future performance...

I like RICA but the fees are too high.
PNL fees are a little high.
CGT fees are acceptable.

CGT with a very different asset allocation and varying asset allocation has performed a lot like Vanguard Lifestrategy 60. I'd be tempted to split between CGT, Lifestrategy 60 and maybe another, for the less racy part of your portfolio. I expect CGT will outperform Lifestrategy 60 through rising rates but I could be wrong.

To hear some of the reasoning behind CGTs portfolio listen to this enjoyable podcast...
https://play.acast.com/s/investorschron ... se-this-wo

These are definitely good choices when markets are toppy and bad choices after crashes. Their past performance looks great when markets crash, just like SMT looks great at all time highs. The trick is to invest in these when high and SMT when low... sadly timing is easier said than done.

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Re: Personal Assets v Capital Gearing v RICA?

#506124

Postby mc2fool » June 9th, 2022, 5:19 pm

AWOL wrote:CGT with a very different asset allocation and varying asset allocation has performed a lot like Vanguard Lifestrategy 60

Indeed it has over the last 5 years, but over the last 10 it's a bit of a different story.

Image
https://www2.trustnet.com/Tools/Charting.aspx?typeCode=FACDQ,XO:BALMAN set Timescale to 10y and Add to this chart: Equities - UK Equity - CAPITAL GEARING. Chart basis is With reinvestment

CGT is a capital preservation then growth, in that order, fund. VLS 60 is a 60/40 whatever happens fund, and actually over the long term I would expect it to outperform, but I don't think I'd compare them to start with....

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Re: Personal Assets v Capital Gearing v RICA?

#506127

Postby Aminatidi » June 9th, 2022, 5:29 pm

Interesting re PNL and the share split.

I'm still heavily in CGT and RICA but I've had a bit of an epiphany recently around passives so I'm looking heavily at what to do there.

More for pure equity exposure right now if I was starting from scratch I think right now I'd need a lot of persuading to look past a low cost Vanguard account and one of the LifeStrategy funds.

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Re: Personal Assets v Capital Gearing v RICA?

#506154

Postby Eboli » June 9th, 2022, 7:18 pm

Lootman asked:

I hold 100 shares of PNL so presumably I will end up with 10,000 shares?


Curiously exactly the example used by Chairman Iain Ferguson, who said:

Under the proposals, each existing ordinary share will be subdivided into 100 new ordinary shares. By way of example, if you hold 100 ordinary shares in the company prior to the proposed split, you will hold 10,000 ordinary shares following the split, and the aggregate value of your holding immediately pre and post the proposed split will be unchanged.

The split depends on a positive vote at the AGM in July 2022.

It appears that the special dividend of £1.40 will accompany the first quarterly dividend for 2022/3. Presumably the quarterly dividends after the share split will reduce to £0.014.

Eb

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Re: Personal Assets v Capital Gearing v RICA?

#506161

Postby richfool » June 9th, 2022, 7:50 pm

The split may well make the (PNL) shares more attractive. I have seen comments in various places, including the DT, where people have made comments like: "What £250 per share, no thanks". (And) It does make topping up more attractive to those with modest amounts or dividends to reinvest.

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Re: Personal Assets v Capital Gearing v RICA?

#512483

Postby richfool » July 7th, 2022, 12:53 pm

An update on Capital Gearing trust's portfolio, as at 30th June:
Quarterly Portfolio Update

Capital Gearing Trust P.l.c. announces that, as at 30 June 2022, it held the following investments in other listed closed-ended investment funds, which do not have a stated investment policy to invest no more than 15% of their total assets in other listed closed-ended investment funds:

Name Percentage of net assets
GCP Infrastructure Investments 0.83%
Residential Secure Income 0.60%
Pershing Square Holdings 0.35%
AVI Global Trust 0.27%
UIL Zero Div Pref 2022 0.10%
UIL Zero Div Pref 2024 0.08%
Pantheon Infrastructure 0.04%
Total 2.27%

Capital Gearing Trust P.l.c. also announces that, as at 30 June 2022, the ten largest investments were as follows
:

Name Percentage of net assets
UK Treasury 0.125% Index-Linked 2024 8.85%
iShares MSCI Japan ESG Screened UCITS ETF 3.44%
SPDR MSCI Europe UCITS ETF 2.40%
US Treasury 0.75% Index-Linked 2045 2.24%
Vonovia 2.13%
Grainger 1.91%
US Treasury 0.375% Index-Linked 2044 1.80%
Greencoat UK Wind 1.50%
Secure Income REIT 1.41%
North Atlantic Smaller Companies 1.32%
Total 27.00%

There were no additional investments with a value greater than 5% of the Company's portfolio.

It should be noted that the above percentages are calculated using 'bid' prices.

https://www.investegate.co.uk/capital-g ... 3634P8E99/

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Re: Personal Assets v Capital Gearing v RICA?

#515265

Postby XFool » July 18th, 2022, 11:48 am


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Re: Personal Assets v Capital Gearing v RICA?

#516319

Postby forrado » July 21st, 2022, 10:29 pm

Personal Assets:

Sebastian Lyon, Chief Investment Officer at Troy Asset Mana gives an update on Personal Assets Trust at the Troy Asset Management Investment Trust Seminar, held on 29 June 2022.

CLICK HERE to watch and listen.

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Re: Personal Assets v Capital Gearing v RICA?

#518195

Postby richfool » July 29th, 2022, 5:22 pm

Personal Assets trust share split:
Personal Assets Trust plc

Date: 29 July 2022

Share Split and Total Voting Rights

Further to the announcement on 27 July 2022 and in advance of the proposed subdivision of its Ordinary shares on a 100 for one basis (the "Share Split") which will take effect from 1 August 2022, Personal Assets Trust plc (the "Company") announces it currently has in issue 3,809,554 Ordinary shares of £12.50 each in the capital of the Company (the "Existing Ordinary shares") and no shares are held in Treasury.

On this basis and in accordance with the Financial Conduct Authority's Disclosure Guidance and Transparency Rules, following the completion of the Share Split, the Company will have 380,955,400 Ordinary shares of 12.5 pence each in the capital of the Company (the "New Ordinary shares") in issue.

The New Ordinary shares will have a new ISIN and SEDOL, as follows:
ISIN: GB00BM8B5H06
SEDOL: BM8B5H0

Application has been made for the admission of the New Ordinary shares to the Official List of the Financial Conduct Authority and to trading on the main market of the London Stock Exchange and to amend the Company's existing block listing facility (the "Admission Applications"). The Admission Applications included the 446,312 Existing Ordinary shares remaining available for issue under the Company's current block listing facility. Upon the amendment of the block listing facility there will be 44,631,200 New Ordinary shares available for issue pursuant to the existing facility.

It is expected that the Share Split will become effective and that dealings in the New Ordinary shares will commence at 8.00am on Monday, 1 August 2022. The last day of dealing in the Existing Ordinary shares will be Friday, 29 July 2022, with the record date for the Share Split being 6.00pm on that day (the "Record Date"). CREST accounts are expected to be credited with New Ordinary shares on Monday, 1 August 2022 and share certificates in respect of the New Ordinary shares are expected to be dispatched to shareholders no later than Monday, 15 August 2022.

The above figure (380,955,400) may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the Disclosure Guidance and Transparency Rules.

Dividend

For the avoidance of doubt, following the Share Split the second interim dividend of £1.40 per Existing Ordinary share announced on 15 July 2022 will now equate to 1.4 pence per New Ordinary share. The payment and record dates for the second interim dividend remain unchanged and the dividend will be paid on 7 October 2022 to shareholders on the register on 26 August 2022. The ex-dividend date will be 25 August 2022.

https://www.investegate.co.uk/personal- ... 55323203U/

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Re: Personal Assets v Capital Gearing v RICA?

#545723

Postby richfool » November 11th, 2022, 9:38 am

Capital Gearing trust's Half Year Results:
Date: 11 November 2022

Capital Gearing Trust P.l.c. (the “Company”)

Announcement of the Half-Year Financial Report for the six months ended 30 September 2022

Chairman’s Statement

Overview

The last six months have witnessed significant headwinds for markets. A combination of rising inflation, geopolitical events, and global economic shifts, and all their associated consequences, have had a bearing on performance in both equity and bond markets. There has been considerable volatility in all asset classes, which the Manager has endeavoured to mitigate. It is no surprise that offsetting the effects of this entirely has proved impossible in the recent six-month period. The downside to the Company’s share price and net asset value has been limited in relative terms, but is nevertheless disappointing given the outstanding record of the Company over most periods since its inception some 40 years ago.

At the half year to 30 September 2022, the net asset value per share was 4,798.4p, compared to 5,025.1p at 31 March 2022. This represents a total return of -3.5% over the past six months and -1.8% over the past 12 months, which, whilst disappointing in absolute terms, is a relatively satisfactory result when compared to overall market declines.

https://www.investegate.co.uk/capital-g ... 0000P8B26/

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Re: Personal Assets v Capital Gearing v RICA?

#559597

Postby richfool » January 6th, 2023, 12:03 pm

The latest quarterly portfolio update for Capital Gearing trust:
Friday 06 January, 2023
Capital Gearing Trust Plc
Quarterly Portfolio Update

CAPITAL GEARING TRUST P.L.C. (the 'Company')

LEI: 213800T2PJTPVF1UGW53

Quarterly Portfolio Update

Capital Gearing Trust P.l.c. announces that, as at 31 December 2022, it held the following investments in other listed closed-ended investment funds, which do not have a stated investment policy to invest no more than 15% of their total assets in other listed closed-ended investment funds:

Name Percentage of net assets

GCP Infrastructure Investments 0.71%
Residential Secure Income 0.41%
Pershing Square Holdings 0.36%
AVI Global Trust 0.33%
UIL Zero Div Pref 2024 0.07%
Total 1.88%

Capital Gearing Trust P.l.c. also announces that, as at 31 December 2022, the ten largest investments were as follows:


Name Percentage of net assets
UK Treasury 0.125% Index-Linked 2024 9.61%
iShares MSCI Japan ESG Screened ETF 3.43%
UK Treasury 0.125% Index-Linked 2029 3.36%
US Treasury 0.625% Index-Linked 2043 2.83%
SPDR MSCI Europe Energy ETF 2.36%
US Treasury 0.75% Index-Linked 2045 1.87%
UK Treasury 0.125% Index-Linked 2026 1.75%
Lyxor Stoxx Europe 600 Basic Resources ETF 1.52%
US Treasury 0.375% Index-Linked 2044 1.49%
UK Treasury 2.5% Index-Linked 2024 1.47%
Total 29.69%

There were no additional investments with a value greater than 5% of the Company's portfolio.

It should be noted that the above percentages are calculated using 'bid' prices.

https://www.investegate.co.uk/capital-g ... 5429P8A87/

I hold RICA and PNL, but not CGT.

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Re: Personal Assets v Capital Gearing v RICA?

#559626

Postby MaraMan » January 6th, 2023, 2:32 pm

Thanks for posting. I hold CGT and RICA, but not PNL. Am tempted to go for a full house though.

MM

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Re: Personal Assets v Capital Gearing v RICA?

#567393

Postby richfool » February 10th, 2023, 9:42 am

Cross Post to Ruffer's January 2023 Report:

viewtopic.php?p=567391#p567391


I continue to hold RICA and a smaller holding in PNL.

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Re: Personal Assets v Capital Gearing v RICA?

#570224

Postby forrado » February 22nd, 2023, 8:44 am

Re: Capital Gearing Trust – PR Newswire Announcement, Tuesday, 21st September 2023.

Subject: Transaction in own shares - see ...

https://www.investegate.co.uk/capital-gearing-trust-plc--cgt-/prn/transaction-in-own-shares/20230221172427PB458/

“On 21 February 2023 Capital Gearing Trust P.l.c. (the “Company”) bought 73,000 of its own Ordinary shares of 25p to be held in Treasury at a price of 4,850 pence per share. The Company’s issued share capital now consists of 26,580,263 Ordinary shares, of which 73,000 shares are held in Treasury. Therefore, the total number of shares with voting rights in the Company is 26,507,263.”

This is indeed a rare announcement. The last time the trust had cause to buy in its own shares was 12th March 2020, at the very start of Covid lockdown timeline, when global equity markets literally fell off a cliff. One needs to scroll back to September 2000 to find further Capital Gearing “transaction in own shares” notices. Though, to be honest, as a close watcher of how Personal Assets, Capital Gearing and Ruffer perform relative to each other, I was expecting this easing off in buyer demand to happen sooner or later.

Since the start of the year the share price of Capital Gearing has been gradually drifting lower at a faster rate than the NAV, moving from a 2% premium to a 1.5% discount in the process. This following a near 36-month period that saw relentless market demand for Capital Gearing shares resulting in the number of shares in issue to rise from 10,878,172 (on 2nd January 2020) to 26,580,236 (on 20th December 2022), of which 73,000 are currently being held in Treasury. That’s an increase by a factor of just short of 2-and-half times. Having seen how this film likely plays out several times before, after any extended period of expansion will follow a period of consolidation. This is the reason why trees don’t grow to the sky – and Capital Gearing is no exception.

First enacted back in 2015, and near identical to that operated by Personal Assets, Capital Gearing’s closely monitored premium-discount control mechanism has never been truly two-way tested in the hard light of day. Rather, its function over the years has been to drive the demand for the trust’s shares in the secondary market. Barring any change in investor sentiment, I will be interested to see how effectively the discount control side of the process now performs if apparent signs of consolidation continue, causing previous strong investor demand for Capital Gearing shares to subside for any length of time.

In the spirit of full disclosure I have been a Capital Gearing Trust shareholder for a number of years via a SIPP.

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Re: Personal Assets v Capital Gearing v RICA?

#570268

Postby Lootman » February 22nd, 2023, 11:51 am

forrado wrote:First enacted back in 2015, and near identical to that operated by Personal Assets, Capital Gearing’s closely monitored premium-discount control mechanism has never been truly two-way tested in the hard light of day. Rather, its function over the years has been to drive the demand for the trust’s shares in the secondary market. Barring any change in investor sentiment, I will be interested to see how effectively the discount control side of the process now performs if apparent signs of consolidation continue, causing previous strong investor demand for Capital Gearing shares to subside for any length of time.

I hold these three ITs as well. Since I do not trade in and out of them, the discount and premium are only of academic interest to me. In fact I go months without looking at the price or valuation - that is part of the appeal of them.

In the case of CGT wasn't there also a desire to increase the liquidity of the shares? It used to have very low daily trading volumes and that led to a wide bid-to-offer spread. It can be off-putting to buy into something and immediately be down 5%!

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Re: Personal Assets v Capital Gearing v RICA?

#570397

Postby forrado » February 22nd, 2023, 10:16 pm

Lootman wrote:In the case of CGT wasn't there also a desire to increase the liquidity of the shares? It used to have very low daily trading volumes and that led to a wide bid-to-offer spread.

Indeed there was. Having watched how successfully Personal Assets operated its price control mechanism, in 2015 Capital Gearing introduced a near identical PCM version with the express aim of improving the market liquidity of the shares. Prior to 2015 the shares were highly illiquid with off-putting premiums and wide bid-to-offer spreads being the order of the day. When I look back at the 2014 Annual Report, the share price premium was 7%, the number of shares in issue were 2,926,906 and shareholder funds stood at £91.3m. Anyone who cares to look at the most recent half-yearly and full year reports for Capital Gearing will see the transformation that has taken place over the course of less than 9 years. And, it's all down to that price control mechanism and the ability of the trust to use it to feed newly created shares into the market. My concerns are this creation process may have run its natural course, hence my previous statement that there is a reason why tress don't grow to the sky.

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Re: Personal Assets v Capital Gearing v RICA?

#570415

Postby richfool » February 23rd, 2023, 5:54 am

Ruffer's guide to volatile inflation:

https://www.trustnet.com/news/13363273/ ... -inflation

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Re: Personal Assets v Capital Gearing v RICA?

#570487

Postby Hariseldon58 » February 23rd, 2023, 11:04 am

I like the style of Peter Spiller of CGT , he talks a lot of sense and early in 2022, like many others I saw headwinds ahead with inflation and consequently higher interest rates. I added a substantial portion of assets to an "alternative" sub portfolio which had a lot of holdings in common with CGT. Trusts that should have been able to increase income with inflation, it didn't work out well...

I underestimated the steep rise in interest rates that made my "alternate" trusts look less attractive on the income side to bonds and the market became more concerned about leverage in these trusts, even when their lending costs were fixed for many years ahead, so not a disaster on a portfolio level but I switched back to a more conventional portfolio and interesting to look at a snapshot of my portfolio from mid August 2022. I have gone back to a substantial holding in TIPS and UK Short Investment Grade+ bonds combined with an equity portfolio that looks much like a developed world tracker with some small cap and emerging markets biases. The bond component will cover income needs for a decade and the equity component could be left alone for the decade if need be.

I'm not sure that the likes of CGT and PNL offer much against a Life Strategy style portfolio, apart from their substantial holdings in Index Linked bonds.

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Re: Personal Assets v Capital Gearing v RICA?

#583605

Postby richfool » April 18th, 2023, 2:47 pm

Personal Assets trust quarterly report (April 2023):

https://www.patplc.co.uk/wp-content/upl ... 2-2023.pdf

They don't seem optimistic on equities:

We have actively reduced
our equity allocation over the past two years,
to a level which is currently just above 20%.
This is the lowest allocation the Trust has had
since 2008. Meanwhile, the 30% of the Trust
invested in ‘liquidity’ is largely assigned to
short-dated US and UK government bonds that
are now delivering respectable nominal
returns


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