M&G High Income Share Discussion Threads

[blackpoolsteve] 20/2/2017 20:31

Yes,the winding up document stated that the illustative value of the income shares would be 55p.
The entitlement of the Zeros is 122.832p,nearly 1p off the above NAV of 56.4p.maybe less the final dividend of say 1p or less which is due on 3rd March,which means the 55p value will be fairly accurate.

Anybody any ideas for a good income alternative to MGHI?

[skinny] 20/2/2017 17:17

20 February 2017
M&G High Income Investment Trust P.L.C.

The Board of M&G High Income Investment Trust P.L.C. announce
that the net asset value (NAV) at 12:00 noon today was £448 million.

Income Shares * 56.94p 'XD'
Capital Shares 0.00p
Zero Dividend Preference Shares 121.91p
Income & Growth Units 56.94p 'XD'
Package Units 178.85p 'XD'

The net asset values have been calculated on a cum-income basis,
with dividends payable deducted from net assets on the ex-dividend
date. Financial assets are valued on a mid-market price basis.

* The ex-income NAV of each Income Shares is 56.40p.

[colonel a] 27/1/2017 13:38

Just got the letter offering cash or 6 roll over {exchange} options.
All roll over options are at a rate to be determined.
Cash is NAV less cost.

[bingham] 27/1/2017 12:22

Was looking at JPEI but divi a bit low.

[blackpoolsteve] 27/1/2017 08:32

Just online as your request came in.Any suggestions for reinvestment? UKCM looks interesting.
Regards.,Steve

[bingham] 26/1/2017 16:37

Corr that was a quick response BPS, as no posts since August.

[blackpoolsteve] 26/1/2017 14:05

Yes thats correct,and final dividend due to go xd on 3rd March,I think. Not sure of final cash payout,if you dont do a rollover,but it looks about 50p
Regards,Steve

[bingham] 26/1/2017 13:58

XD 1.55p yesterday I believe.

[timbo003] 05/8/2016 16:46

WOW a 2.7p rise in NAV between noon yesterday and noon today, the bond portfolio must have benefited from the rate rise as it's unlikely to be due entirely to the equity portfolio.

[rcturner2] 05/8/2016 07:56

timbo, I agree, given the spread on the shares there doesn't seem that much point in selling before windup.

[timbo003] 05/8/2016 07:30

>>>>RCT

I don't have significant capita gains on these income shares, so I'll take the cash and consider reinvesting in the secondary market (at a discount to NAV) rather than take the roll over and invest at the underlying NAV

I definitely won't sell before wind up as I would then no longer qualify for the likely final post wind up payment which should include a significant VAT rebate payment.

[rcturner2] 05/8/2016 07:11

Cheers tim. It would be helpful if they had actually set a date for announcing what they intend to offer.

[timbo003] 05/8/2016 07:06

....a couple of other noteworthy items from the results:



* They have already made £350m provision for winding up cost (see note 5) so the current NAV reflects these likely costs already.

* There could be a post-windup payment for reclaimed VAT on management fees, I'm not sure over what period this would apply, but last year fees were £3.7m (note 4) so 20% of that is circa 700K and if the rebate were over a 10 year period that could be as much a £7m (i.e. 2.7p/share).

* The decrease in interest rates announced yesterday will have increased NAV of the bond portfolio, the Annual report states that this would be circa £4M for a 0.5% reduction (see note 16) so presumably it would be approaching £2m for a 0.25% reduction in interest rates (i.e. 0.8p/share)?

[timbo003] 05/8/2016 06:23

The commentary on the winding up process from the results released earlier this week are fairly self-explanatory:




Winding-up

The Board is mindful of the fact that the Company is approaching the end of its planned life and is due to be wound up on 17 March 2017 and for cash to be returned to shareholders. The Board believes that it would be beneficial to shareholders as a whole, for the Manager to have some flexibility around the Company's permitted exposure to convertible and fixed interest securities, so as to help position the Company's portfolio ahead of the Company's winding-up in March 2017. It has therefore agreed that the Manager may invest up to 40% of the portfolio in such assets, representing a non-material increase to the permitted limit of 30% in the current investment policy. We expect to continue reducing the equity content gradually over the next few months following the strong rally in the stock market after the Referendum. We also retain the option of protecting the capital value of the portfolio through the use of derivatives at the appropriate time.

The Board is aware that a number of shareholders will have latent capital gains within their holding, and so we are considering potential investment options for shareholders in addition to the cash return. While the exact nature of the options to be made available to shareholders are yet to be determined, the Board intends to offer shareholders at least one roll-over option, which will allow a tax efficient roll-over into a new investment. The Board and its advisers expect to consider a range of different roll-over options, including both open-ended and closed-ended investment companies.

[blackpoolsteve] 27/7/2016 15:25

I agree with your comments erstwhile

[blackpoolsteve] 27/7/2016 06:55

I think the trust will announce plans by February 2017,if memory serves me right

Kind regards, Steve

[rcturner2] 27/7/2016 06:33

Does anyone know what the timetable is for the windup of the trust? When are we likely to be asked whether we want to roll over or take cash?

[timbo003] 26/4/2016 22:58

>>>>Sleepy

Your analysis is correct.

If the shares were wound up today (with no fees incurred) and the Zeros were paid out in full today, then the income shares would receive the current NAV for the units (MGHU) minus the final redemption value of the zeros (MGHZ)

i.e. 169.15p - 122.83p = 46.32p




I hold a few income shares (MGHI) which currently trade at at around today's wind up value (i.e. a 0% discount), however they still offer good value as you get some decent gearing for nil premium and there are still a few good dividends to come (which should be covered by revenue coming in as dividends from the investment portfolio).

[sleepy] 26/4/2016 22:04

Erstwhile - not saying you are wrong but the current ord NAV is based on the Zdps being valued at c 113p whereas they will be repaid for more than that ( c123p?) Every extra penny on the Zdps repayment price is a penny off the ord NAV

[rcturner2] 26/4/2016 11:30

Do zeros exist any more though? I thought they were tainted and had been abandoned?

[aleman] 30/3/2016 10:17

3 trading days of the tax-year left. CGT and dividend tax changes next year so some might want to make porfolio changes this year. It's less than a year to wind up of MGHI and there are no proposals for a roll-over vehicle yet. Some investors might have wanted to sell in the current tax-year if they knew what the new proposals are, but it is nearly too late. Not a very good show.

[mister md] 25/2/2016 08:54

nice dividend paid into my account today ;)