SteveT
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Post by SteveT on Nov 29, 2015 16:27:08 GMT
I read the graph as indicating that 30% of the LOANS ACTUALLY SOLD were at par, not 30% of loans for sale selling at par in a week. I don't think that can be right as the 3 lines add to considerably more than 100% [Although, on reflection, I should take nothing for granted in the world of Fallacious Corroboration]
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arbster
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Post by arbster on Nov 29, 2015 16:29:36 GMT
I read the graph as indicating that 30% of the LOANS ACTUALLY SOLD were at par, not 30% of loans for sale selling at par in a week. I don't think it can be that because the totals for that week would add up to about 130%, so it can only mean that of the property parts listed at par, c. 30% sold, while c. 80% of those at a discount were sold. I do wonder about the stats tho, as only 2 weeks earlier ALL of the discounted parts were sold... really...? EDIT: Crossed with SteveT.
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Post by GSV3MIaC on Nov 29, 2015 18:15:45 GMT
ISTR that Funny Calculations stated some place, in the blog Q&A maybe?, that the graph was number sold divided by number (newly) listed, nothing to do with how many were actually on the marketplace (which'd typically be rather more than the number listed on any one day / week / hour whatever) . You'd have to go rummage the other place (or the blog) around and try to find the explanation. Mark Twain strikes again. 8>.
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blender
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Post by blender on Nov 29, 2015 22:16:08 GMT
I believe GSV is right there. I dimly recall seeing that chart and noting that it was to do with sales and listings, the dynamics of the market. It did not seem very useful and was forgotten.
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nick
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Post by nick on Nov 30, 2015 7:51:40 GMT
FC listed their investment trust today on LSE raising £150M . The trust has a target yield of 7% and will deploy across all FC's platforms. It'll be interesting to see how they practically deploy the funds - I would imagine via the WL route. Given that it is a SME income fund I can't imagine they will be deploying much into property, but haven't been able to dig up their prospectus yet.
Link to FT article announcing the listing: www.ft.com/cms/s/0/3333a8dc-968c-11e5-95c7-d47aa298f769.html#axzz3sta3Jrv4 |
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blender
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Post by blender on Nov 30, 2015 8:42:49 GMT
New Autobidders must think they will be lending to SME businesses but will find, increasingly, that their money is going into property development in the new loans. I suppose, to get the money invested quickly, they have to buy a large number of loans on the SM.
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nick
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Post by nick on Nov 30, 2015 8:49:08 GMT
There is a dedicated website set-up for the trust: www.fcsmeif.com/. The prospectus sheds a bit more light on how they are going to deploy the funds: - Investments are randomly allocated by FC on the PM without any consideration of geography, risk rating, sector etc, ie as they currently allocate WLs
- Max allocation to UK 100%, US marketplace 50%, , other 15%
- Are allowed to leverage up to 50% of fund NAV. Stated intention to gear up the trust to target net return of 8-9%pa
I like the use of gearing to boost returns as I imagine they can borrow money cheaper than me for this propose. The shares are currently trading at par and total placing costs were 2%.
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nick
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Post by nick on Nov 30, 2015 8:51:47 GMT
New Autobidders must think they will be lending to SME businesses but will find, increasingly, that their money is going into property development in the new loans. I suppose, to get the money invested quickly, they have to buy a large number of loans on the SM. The money is going to be deployed in the PM via WLs - no purchasing on the SM. There is no mention of property loans at all in the prospectus so I think they are specifically excluded or would have been highlighted within the risk factors.
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sl75
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Post by sl75 on Nov 30, 2015 9:12:00 GMT
So, is the FT wrong in saying "It is eligible for self-invested personal pensions and tax-free individual savings accounts.", or is my stockbroker wrong in giving an error message "This stock may not be able to be held in an ISA."?
Where would I find a definitive answer?
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SteveT
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Post by SteveT on Nov 30, 2015 9:17:21 GMT
So, is the FT wrong in saying "It is eligible for self-invested personal pensions and tax-free individual savings accounts.", or is my stockbroker wrong in giving an error message "This stock may not be able to be held in an ISA."? Where would I find a definitive answer? TrustNet Direct were happy for me to buy via my ISA account when I rang them for a quote about 30 minutes ago (I decided to hold off for now and hope to pick some up at 100 later) [HL's website also shows it as eligible for ISAs and SIPPs]
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nick
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Post by nick on Nov 30, 2015 9:56:24 GMT
So, is the FT wrong in saying "It is eligible for self-invested personal pensions and tax-free individual savings accounts.", or is my stockbroker wrong in giving an error message "This stock may not be able to be held in an ISA."? Where would I find a definitive answer? It trades on LSE, a Recognised Exchange, which is the main restriction for eligible instruments that can be held in an ISA. Can't see anything else that would prevent it being held in an ISA.
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Post by GSV3MIaC on Nov 30, 2015 11:22:57 GMT
So, is the FT wrong in saying "It is eligible for self-invested personal pensions and tax-free individual savings accounts.", or is my stockbroker wrong in giving an error message "This stock may not be able to be held in an ISA."? Where would I find a definitive answer? I'm sure the definitive answer is yes you can, you need a new stockbroker, unless 'may not' really means 'we don't know, let's go find out'. Hargreaves Lansdowne certainly have no problem adding FCIF to my ISA, SIPP, or general shares fund.
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blender
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Post by blender on Nov 30, 2015 11:37:56 GMT
New Autobidders must think they will be lending to SME businesses but will find, increasingly, that their money is going into property development in the new loans. I suppose, to get the money invested quickly, they have to buy a large number of loans on the SM. The money is going to be deployed in the PM via WLs - no purchasing on the SM. There is no mention of property loans at all in the prospectus so I think they are specifically excluded or would have been highlighted within the risk factors. I was meaning, but did not explain well, that the consequence of this fund taking more SME whole loans will be that the consumer lenders on the partial market will be force-fed property, through PM and SM.
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am
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Post by am on Nov 30, 2015 14:07:49 GMT
The money is going to be deployed in the PM via WLs - no purchasing on the SM. There is no mention of property loans at all in the prospectus so I think they are specifically excluded or would have been highlighted within the risk factors. I was meaning, but did not explain well, that the consequence of this fund taking more SME whole loans will be that the consumer lenders on the partial market will be force-fed property, through PM and SM. Except that they don't seem to have enough property to feed us - I've just withdrawn 3.5% of my account total because the uninvested portion was getting out of hand (6% rising to 7.5% when Wolverhampton repays).
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sl75
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Post by sl75 on Nov 30, 2015 14:11:11 GMT
... unless 'may not' really means 'we don't know, let's go find out'. Suspect that's probably the case (I'd not noticed the precise wording until after I'd copy-pasted into post). At a wild guess, maybe their system automatically detects new shares, but awaits manual confirmation of ISA eligibility? I'll give them a call when I get a chance.
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