Another IT I'm invested in.
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ukmtk wrote:Any ideas why AEI suddenly plunged just under 5% at close today?
Another IT I'm invested in.
PrefInvestor wrote:Well umtk I have to say I fail to see the attraction of AEI. High yield yes, good look to its current top 10 holdings too, but its performance is just dreadful, now down from over 300 to 260 YTD, so over 10% - and down even more over longer timescales.
Just look at its share price chart on HL or any other investment website. It’s big drop back in January I suspect was due to performance of Close Brothers (CBG) which fell by about 50% at that time due to its significant exposure to the car finance sector and the current problems there, CBG was an AEI top ten holding at the time. Guessing yesterdays move was likely another similar event but I haven’t seen any news.
ATB
Pref
moorfield wrote:PrefInvestor wrote:Well umtk I have to say I fail to see the attraction of AEI. High yield yes, good look to its current top 10 holdings too, but its performance is just dreadful, now down from over 300 to 260 YTD, so over 10% - and down even more over longer timescales.
Just look at its share price chart on HL or any other investment website. It’s big drop back in January I suspect was due to performance of Close Brothers (CBG) which fell by about 50% at that time due to its significant exposure to the car finance sector and the current problems there, CBG was an AEI top ten holding at the time. Guessing yesterdays move was likely another similar event but I haven’t seen any news.
ATB
Pref
I had a little chuckle reading that from someone who calls themselves "PrefInvestor".
The clue as to what AEI does well is in the name. 23 years of increasing dividends and counting. If it's income AND capital growth you're after your're in the wrong pub, clearly. Try the one down the road (or reinvest the income).
I think many discerning income investors building a well diversified PHY would elect to hold it
EthicsGradient wrote:moorfield wrote:It looks like it cannibalises its capital to achieve income.
moorfield wrote:I had a little chuckle reading that from someone who calls themselves "PrefInvestor".
The clue as to what AEI does well is in the name. 23 years of increasing dividends and counting. If it's income AND capital growth you're after your're in the wrong pub, clearly. Try the one down the road (or reinvest the income).
I think many discerning income investors building a well diversified PHY would elect to hold it
Prefinvestor wrote:
That's a feature of many high yield investments, they effectively pay you some of your own money back while losing some of it in the process!
PrefInvestor wrote:Anyone interested in AEI might find their full portfolio as of 28-Feb-2024 of interest. This is available on their website as an Excel spreadsheet via this link:-
https://www.abrdnequityincome.com/docs? ... 35708d5e5f
Note: This should open directly on an iPad allowing you to view or download the portfolio, at least it did for me. On a PC it downloads the Excel spreadsheet containing the portfolio into your Downloads folder which you will then need to open using a program that can read Excel .xlsx files - which should be possible with most spreadsheet programs.
The portfolio explains a lot….
ATB
Pref
mike wrote:For those with difficulty loading, the latest factsheet from 31 January is here...
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