littleoldlady
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Post by littleoldlady on Mar 1, 2017 19:03:11 GMT
Can anyone explain the calculation of annual interest shown for buying a share in PMF A? It says that a £100 share due to return £108 and costing £108.12 will return 7.4%. AFAICS this is a negative return. So maybe they are ignoring the PM Fee? Naughty naughty if so. But even then the price without the fee is £106 giving a return of £2 or 1.8868% for 5 months so about 4.5%pa.
What am I missing?
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 1, 2017 19:28:36 GMT
Can anyone explain the calculation of annual interest shown for buying a share in PMF A? It says that a £100 share due to return £108 and costing £108.12 will return 7.4%. AFAICS this is a negative return. So maybe they are ignoring the PM Fee? Naughty naughty if so. But even then the price without the fee is £106 giving a return of £2 or 1.8868% for 5 months so about 4.5%pa. What am I missing? Each share is worth £100, which @8% returns £8pa Cost of share is £108.12 Return/cost = % return 8/£108.12 =7.4% Its not a negative return, its just a return that is reduced by the purchase being made at a premium. Property shares par value changes in relation to underlying asset value, finance shares par value always remains £100. Your always going to get a reduced coupon buying them on the SM
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Steerpike
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Post by Steerpike on Mar 1, 2017 19:32:51 GMT
Of course the return of £8 is somewhat depleted by the capital loss when you sell your share that cost £108.12 for £100.
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littleoldlady
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Post by littleoldlady on Mar 2, 2017 8:29:06 GMT
Of course the return of £8 is somewhat depleted by the capital loss when you sell your share that cost £108.12 for £100. To a simple little old lady that is a negative return.
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jnm21
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Post by jnm21 on Mar 5, 2017 17:11:09 GMT
Just went through the same "am I missing something" with PMF C - at 10.56 including fee, I make it a 24p gain. The PM annual interest figure is totally pointless as the 80p interest paid may well be 7.58% of 10.56, but I would have paid 56p premium. I reckon a ~4% annualised return would be much more useful to show.
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jnm21
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Post by jnm21 on Mar 19, 2017 3:37:08 GMT
Of course the return of £8 is somewhat depleted by the capital loss when you sell your share that cost £108.12 for £100. To a simple little old lady that is a negative return. Apologies for going off topic a little, but on the negative returns theme, can anyone explain where the value is in the SM £15+ prices for SPV 54? The yield seems mediocre (appreciate that I am a dinosaur for judging based on past performance) and I can't see a black & white revised valuation figure to suggest well over 50% capital growth.
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littleoldlady
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Post by littleoldlady on Mar 19, 2017 8:10:40 GMT
To a simple little old lady that is a negative return. Apologies for going off topic a little, but on the negative returns theme, can anyone explain where the value is in the SM £15+ prices for SPV 54? The yield seems mediocre (appreciate that I am a dinosaur for judging based on past performance) and I can't see a black & white revised valuation figure to suggest well over 50% capital growth. Maybe it's something to do with: "The first geared opportunity offered to Property Moose investors with 50% finance in place from a commercial lender."
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littleoldlady
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Post by littleoldlady on Mar 19, 2017 8:46:46 GMT
Can anyone explain the calculation of annual interest shown for buying a share in PMF A? It says that a £100 share due to return £108 and costing £108.12 will return 7.4%. AFAICS this is a negative return. So maybe they are ignoring the PM Fee? Naughty naughty if so. But even then the price without the fee is £106 giving a return of £2 or 1.8868% for 5 months so about 4.5%pa. What am I missing? Each share is worth £100, which @8% returns £8pa Cost of share is £108.12 Return/cost = % return 8/£108.12 =7.4% Its not a negative return, its just a return that is reduced by the purchase being made at a premium. Property shares par value changes in relation to underlying asset value, finance shares par value always remains £100. Your always going to get a reduced coupon buying them on the SM And what about the share value (100.85 as I write). This is 8 months old @ 8%pa so why isn't it about 105.33?
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jnm21
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Post by jnm21 on Mar 19, 2017 10:32:41 GMT
Apologies for going off topic a little, but on the negative returns theme, can anyone explain where the value is in the SM £15+ prices for SPV 54? The yield seems mediocre (appreciate that I am a dinosaur for judging based on past performance) and I can't see a black & white revised valuation figure to suggest well over 50% capital growth. Maybe it's something to do with: "The first geared opportunity offered to Property Moose investors with 50% finance in place from a commercial lender." I can't see it - from what I can see they have only paid off 3-4K of the mortgage. Really keen to know what I'm missing - a seam of gold under the property?
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