|Ryan's dreams less than 9 months ago...
"A focus for Ryan in 2016 is to stabilise the discount further in order to hopefully expand the size of the fund. The trust previously traded at around an 8 per cent discount to net asset value, says Ryan, while last year it traded at a small premium.
“Long term we would love to grow the trust, but for us to be able to do that we need to make sure there is trading volume to give investors comfort they can get in and out,” he says. “It would be lovely to have the trust as one of the larger ones in the sector.”
What a complete failure by Blackrock and more importantly in the past couple of months The Board - I'd vote to sack the lot of them.|
|Usually the word abysmal covers very poor perfor UImance,
but in this case it may not even suffice.
There are decent IT available on well over 10% discounts so
unless they are going to instigate a strict discount control mechanism
in whatever new form BIST takes, it is perhaps difficult to view these
as a buy.
How liquid are some of the holdings?, "alternatives"for example which comprise
a decent % of the fund.|
|Lol you're right - some poor souls sold out at under a £ (seems the bid gapped).
Underperformance must be mainly govnt bond-related, & fearing we're clearly nearer the top of the bond market than the bottom, doesn't inspire me to go long.
I'd have thought a good money-making strategy would be "do the opposite of whatever BIST do".|
|NAV down another 1p even though FTSE near all time highs. Shocking under-performance.
With dividend unsustainable and all the uncertainty as to the future direction I think a 20% discount is merited so I will not be buying back in again at over 100p.
The price did seem to spike down to 100p earlier today.|
|Not saying BIST isn't a buy if you think the strategic review will produce something interesting, and it's clearly on a discount, but strewth - was even more right in the post above than I realised:
128.06p Capital only and including debt at par value
120.04p Capital only and including debt at fair value
130.81p Including current year income and debt at par value XD
122.79p Including current year income and debt at fair value XD
Tuesday's close after massive market rally to all-time FTSE highs:
128.11p Capital only and including debt at par value
120.21p Capital only and including debt at fair value
130.88p Including current year income and debt at par value XD
122.98p Including current year income and debt at fair value XD
127.66p Capital only and including debt at par value
119.89p Capital only and including debt at fair value
130.44p Including current year income and debt at par value XD
122.68p Including current year income and debt at fair value XD
Equivalent for SHRS (top line only):
For MRCH, again just one figure for comparison:
So over 3 days (with the ftse's monster day in the middle) there were rises of 0.74% for SHRS, 1.1% for MRCH (benefitting from not having the fixed interest exposure of SHRS) and...a fall for BIST, continuing a long-lasting theme.|
|Used this rally to sell out again for a small profit. Had planned to stay in until outcome of strategic review. Another look at a selection oflast reported holdings:
Equities 44.4%, of which UK 26.9%, overseas 17.5%.
"Volatility Strategies", whatever that means - 5.7%
Fixed Income 40.3%, with no split to UK but at least some is in UK bonds.
Makes me think they won't be benefitting all that much from market rally/£ tank. Also too many highly-priced bonds for me to feel comfortable. Be interesting to see tomorrow's NAV RNS, will undoubtedly be some benefit, but feels like it'll be half the benefit that some other get.
Will keep an eye on BIST & wouldn't rule out returning to them at some point. Good luck anyone holding.|
|Looking at the top investments again, the damage must have been done earlier - last Factsheet has an Equity weighting of 38%. That means they've been buying bonds near the top, and won't be benefiting much from recent equity rally. Quelle surprise.
The comparison with SHRS & MRCH seems pertinent - MRCH over-geared and over-paying, but SHRS is a great co IMO - the gearing is accounted for by the bond holdings, the divi's high & sustainable. Needless to say I hold a lot more SHRS than I do BIST, but fingers crossed for this strategic review. Though feels like it's the Board as much as the managers who need a good kick.|
|Could be encouraging. Clearly this Blackrock team investment strategy failed. Board is right to invite other groups to pitch for the mandate rather than plod on or ditch investment policy. Trust of this size will attract a lot of interest. Pity 2 months wasted but should be able to conclude within next 2 months. Hopefully, other groups can identify where Blackrock went wrong and propose solutions that don't stray too far from basic investment policy - global, multi-asset, income - targets / parameters are likely to be revised down though, maybe to a yield linked to annual NAV cf JP Morgan Global Growth & Income (4%).|
|Which is odd, when they've so many bonds too. Not that you'd want to be in bonds when the bubble finally bursts, but must be a very small portion of the portfolio that's behaved disasterously.
International Government Bonds
Remaining 19 Uk Equity Investments
High Yield Bonds
Investment Grade Corporate Bonds
iShares Inc Comex Gold ETF USD
Uk Government Bonds
Bsf Impact World Equity Fund
Funding Circle SME NPV
Blackrock Throgmorton Trust
Remaining 46 Overseas Developed Market Equity Inve|
|I've just sold my 10,000 for a small loss. Collected some good dividends though.
Look at the chart. There can't be many trusts with a chart like that with the FTSE near its all time high. It's like the FTSE chart if it was turned upside down. The BIST portfolio is 40% equity so it means the other stuff has performed horrendously.|
|"...And to invite fund management groups, including BlackRock..."
Odds on Blackrock keeping management of it?|
|The current dividend looks unsustainable, it's specifically mentioned this time.
Well this must be a very serious review as it will take 3 months,
|Flipping Heck! It's taken them 2 months to decide to have a strategic review. The previous news was a review but not a strategic one.
BlackRock Inc Strat
Announcement of Strategic Review
BLACKROCK INCOME STRATEGIES TRUST PLC
Announcement of Strategic Review
Further to the announcement dated 1 August 2016 of a review into the Company's investment objective and policy, the Board has considered a number of factors. These include the performance of the investment portfolio, the cost of the Company's debt, the cost of paying the dividend and its discount management policy.
The Board has now decided to undertake a strategic review and to invite fund management groups, including BlackRock, with both established multi-asset management credentials and the experience of managing listed closed-end funds, to present proposals to the Board.
A further announcement will be released as soon as practicable and before the publication of the report and accounts in December 2016.
Cenkos Securities plc
Will Rogers Tel: 020 7397 1920
Alan Ray Tel: 020 7397 1916|
|This is not just any old Strategic Review, this is a Blackrock one,
meanwhile they get paid.
Appears a big seller in the background as per one of the articles posted
here over the Summer, DYOR as always.|
|Capital Preservation? Will see what they eventually come up with, but I think this will be dumped in short order.|
|How long does it take to conclude an investment strategy review? We in limbo here!|
|Taken a position here Friday,6% yield only just covered by earnings,a cut of 30% would still be over 4% (not bad in this environment)it may well give them ammunition to narrow that wide discount or even reduce their gearing,whatever the outcome that very attractive Z score was just to tempting,good luck to all holders.|
|1.6 pence dividend shortly, XD Thursday two weeks.|
|On fire today. On fire. I hope everyone has their seat-belts on.
What are the possible outcomes of the review? Is there a chance they may wind-up?|
|Out of interest, the Blackrock fund which BIST is derived from.
|Until the review conclusion it makes any share price headway challenging,
I'm attempting to be polite with those choice of words.|
|And the fact that it's got Aviva wanting out of its 13% stake adds to the pear shape.
|1.113 was the lowest buy price I managed last week.|
|I have added some recently, taking a view the review conclusion
will maintain a focus on discount control,
However there are risks so thought it worth posting on those,
as always it is a case of DYOR.
On Investment Trusts, Shires Income gives a yield of approx 5.4%
and the NAV discount is over 10%, it's a significantly smaller trust than BIST.|