To be ready for the next market crash, there will be one the timing is the unknown. We need to re-visit the last crash (Covid), as always a picture saves a thousand words.
U knew that LWDB was a dividend hero, if u didn’t u do now.
From the chart u buy the yield, of course there was no way of knowing if the price would continue to fall but u are happy with the yield.
Your knowledge rewarded u and then simply re-invest the dividends back into the Trust.
Today, u could take out your stake and re-invest in a higher yielder, also u could take out some profit and re-invest in another higher yielder.
The dividends from LWDB are now free u have achieved the holy grail of investing that u have a share that pays u regular income and sits in your account at nothing, zero, zilch.
Your yield on your initial investment would now be around 20%.
Alexander Ohlsson, Chair of Foresight Solar, said:
“Foresight Solar has delivered resilient performance, once again proving solar power’s effectiveness and, as an asset class, showing its stability against a complex macroeconomic backdrop.
“During the period, we faced some of the worst weather conditions in the fund’s history in addition to falling power prices. Despite this challenging environment, Foresight Solar closed the six months to 30 June 2024 only moderately behind expectations and on track to deliver its 8.00 pence per share dividend target for the year.
When I fcast the future earnings for the Snowball, I never plot any future dividend growth, because it’s tiny and I use any increase in dividends as a buffer for any dividends that disappoint. KISS.
Note: the yield for RGL has not caught up with events, yet.
If u want to do your own calculations for your plan, u do have a plan ? the above is from the calculatorsite.com
Note the calculation is for the dividend compound growth and doesn’t include any share growth or buying Trusts with a higher yield and as the price rises the yield falls and u flipped into another high yielder, subject to the market at the time.
When cometh the day when there are no ‘safe’ Trusts to re-invest the Snowball’s dividends in around 7%, remembering no Trusts dividends are completely safe but some Trusts dividends are safer than others. Normally the market is ahead of u there and the yields will be lower.
One option would be to re-invest the earned dividends into a world tracker, knowing that if u can choose when to sell u will not lose any of your hard earned. No guarantee that u will make 7% and u need to have the ability to sit thru the ETF flatlining for multi years. Also when the ETF falls u may print a loss on your investment with no income to re-invest.
I don’t think the ‘cometh’ day will be anytime soon.
The number of investment companies hitting 52-week high discounts reached double digits last week – the first time that’s happened in over three months. But which sector contributed a third of the names on the list?
By Frank Buhagiar
We estimate there to be 12 investment companies that saw their share prices trade at 52-week high discounts over the course of the week ended Friday 13 September 2024 – three more than the previous week’s nine.
Four of this week’s 12 herald from the renewables sector. It has been a while since that happened. Back in Q1 2024, renewable investment companies were regular contributors to the 52-week high discount list. That was when the higher-for-longer interest rate narrative dominated market sentiment – as well as making financing more expensive, higher interest rates lead to higher discounts rates which are used to value a company’s assets. Higher discount rates equal lower valuations.
So, with interest rates now coming down in the UK and Europe and with the first cut expected possibly this week in the U.S. why the sudden jump in renewable 52-week high discounters? Might be down to news this week from Aquila European Renewables (AERS) that its long-running strategic review failed to find a buyer willing to pay an acceptable price for the company. AERS will now hold a continuation vote at the next AGM which could lead to the fund being wound up.
The AERS news, which was released on 12 September, good for a slight narrowing in the fund’s share price discount. Not for the likes of Atrato Onsite Energy (ROOF), Ecofin US Renewables Infrastructure (RNEW) and HydrogenOne Capital Growth (HGEN) though, the share prices of which all set new year-high discounts the next day. Could it be a size issue? AERS already on the small side with a market cap of £260 million (total assets of over £500 million), so too Gore Street Energy Storage (GSF) on £288 million (total assets of over £500 million), but the other three all have sub-£100 million market caps and total assets of between £100 – £200 million. Are they just too small to register on the radar of larger peers – not big enough to move the needle and all that
And don’t forget it was only on 9 September that RNEW announced its own strategic review had failed to find a buyer for its assets and that it too would be proposing a managed wind down of its own. Looks like some sub-scale funds might just be too small to be of interest to the big players. And if that’s what the market thinks then share prices could lose any potential bid froth they may have once had baked in. Take away any takeover excitement/potential and share prices may well lose a prop and discounts could widen. Now, having just said that, what price a renewables takeover announcement hitting the screens in the next few days to blow this theory out of the water ?
Four investment trusts closed last week. How many more will go?
By: Elliot Gulliver-Needham
Investment Reporter
The number of investment trusts on the market has fallen to new lows.
Last week, four separate investment trusts handed in their notice, announcing they would be shuttering.
Aquila European Renewables, Ecofin US Renewables, Gulf Investment Fund and Keystone Positive Change, all said they would be liquidating, as the number of trusts on the London Stock Exchange continued to dwindle.
The number of investment trusts has fallen to its lowest level in years for a number of reasons, including high discounts, pressure on small trusts, and ongoing issues around cost disclosure.
However, almost all of the trusts last week said they would be closing for a simple reason: Performance.
Why did the investment trusts close?
With a total of ten mergers announced so far this year, far above the four last year and five in 2021 and 2022, more trusts are feeling the need to combine and get big to stay afloat.
What might be more worrying for investors, however, is the events of this week, with funds simply shuttering rather than finding an eligible buyer.
Selling off assets can take years, and ultimately can signal to the market that the trust was never worth backing in the first place.
Three of the trusts that announced they would be pursuing a closure last week have suffered a period of very poor performance, especially the two renewable focused trusts, which had fallen 43 and 11 per cent over the last year.
While Keystone is up more than seven per cent over the last year, it is still down 21.3 per cent over the last five years.
Gulf Investment Fund, which only controls £96m in assets, decided to pursue a wind down due to its small size.
All of the trusts also cited their discounts, which is a problem throughout the sector. Just 26 investment trusts on the market are trading at a premium, with their share prices sitting above the value of their underlying assets.
This is naturally pushing investors to question whether they might get more value by simply selling off the assets of the fund, getting back their full value rather than sitting on an average 14 per cent discount.
However, performance in the sector is picking up. The average trust’s share price is up more than 17 per cent in the last year, or 45 per cent over the last five.
Out of the 366 trusts tracked by the Association of Investment Companies, only 85 funds have seen their share price fall over the last year, with 42 falling by double digits in the time period.
The fact that all of the trusts that are closing have issued below average performance may suggest a winnowing effect for the better, cutting out the funds that have failed to match their peers.
Trust
Share price over last year
Share price discount to underlying assets
Ecofin US Renewables Infrastructure
-43.1 per cent
-45.9 per cent
Aquila European Renewables
-11.21 per cent
-21.9 per cent
Keystone Positive Change
7.8 per cent
-7.1 per cent
Gulf Investment Fund
6.1 per cent
-4.8 per cent
Source: Association of Investment Companies
The news followed four other trusts indicating they would be departing the main market the week before, though three of these were due to being bought out.
Tritax Eurobox and Balanced Commercial Property Trust both received takeover bids, while Aurora announced it would be absorbing fellow trust Artemis Alpha. However, JP Morgan’s Global Core Real Assets did fail its continuation vote, meaning it will also be shuttering.
“On the whole, I feel the rationalisation of the sector is healthy, after all the returns on three of these four funds have undoubtedly disappointed investors,” said James Carthew, head of investment company research at Quoteddata.
“However, I believe that Gulf Investment along with Tritax EuroBox and Balanced Commercial Property Trust… may be missed in time. It would not surprise me if similar vehicles relaunched in a few years.”
Artemis Alpha Trust PLC ex-dividend date Fidelity European Trust PLC ex-dividend date Oakley Capital Investments Ltd ex-dividend date Patria Private Equity Trust PLC ex-dividend date Regional REIT Ltd ex-dividend date Triple Point Energy Transition PLC ex-dividend date Unite Group PLC ex-dividend date
Change of Name to Foresight Environmental Infrastructure Limited
At the Company’s AGM held on Friday 13 September 2024, shareholders voted in favour of the resolution to change the Company’s name to Foresight Environmental Infrastructure Limited (“FGEN”).
As such, the change of name became effective on Monday 16 September 2024.
Further, the Company’s stock market ticker will become “FGEN”, effective as of 08:00 a.m. on Tuesday 17 September 2024. In conjunction, the Company’s website will also change to https://www.fgen.com/
The Company’s ISIN, SEDOL, and CUSIPs will remain unchanged and its Legal Entity Identifier (LEI) remains 213800JWJN54TFBMBI68.
Shareholders should note that their shareholdings will be unaffected by the change of name. Existing share certificates should be retained as they will remain valid for all purposes and no new share certificates will be issued.
