F&C PR EQ Zeros Share Discussion Threads

[skyship] 28/9/2011 09:02

Decided to park some cash back in here.

Paid 125.625p, ie 126.4p gross of all costs.

At 126.4p the GRY = 5.93% to redemption in Dec'14 - hardly dramatic, but marginally more attractive than other secure Zero yields.

[stemis] 07/1/2011 16:37

Currently about 5.5% pa to redemption

[skyship] 21/10/2010 16:50

Ian - yes - so? If, by way of an example without accurate figures, you buy AZN @ 2500 on a 7% yield, you may well decide that at 3300 when the yield = a more modest 5%, then the time has come to take the profit as newcomers might be thinking the shares as fully valued. So with FPEZ @ 116p versus a buying price of 105p just 5months ago.

You always have to evaluate on the basis of where you are now - not where you started. Very important to grasp that basic fundamental.

Without being patronising, are you relatively new to the investment game - if so, you have done well to find yourself owning or looking at a stock relatively incomprehensible to most PIs!

[ianbrewster] 20/10/2010 21:43

Sky / Mangal

Am I missing something? Surely it is the GRY at the time you buy that counts.

You are still getting e.g. 8% pa on the money that you originally invested even if the GRY at today's price only gives 6.5%.

[mangal] 20/10/2010 17:50

skyship, I too gradually sold out recently once the gry started going below 7% & invested some of the proceeds into more geared plays(mainly warrants).

[skyship] 20/10/2010 15:51

Farewell faithful friend - sold my other half here today @ 116.75p as the GRY has now dropped to a "lowly" 6.58%. Still a very nice level, but I confess to being more aggressive....

[skyship] 16/10/2010 18:24

Halved my holding this past week as overweight and needed cash to top-up holdings in IRET & HPEQ. Note: At 115.5p the GRY here is 6.84%

# IRET is my pick of the properties:

At 47p they:

# yield 8.5% covered 1.3x
# are on a 20% discount to the basic 59p NAV
# have a relatively low LTV at 47%
# have quality management
# have the right attitude to shareholder value; and
# are effectively run by a bank - ING

# HPEQ is a classic price anomaly stock due to practically zero Private Investor knowledge or interest. If you are on this thread then you are a more professional investor, so do take a look. All facts and figures on the HPEQ thread. At 197.5p (198.5p inc stamp) they are on an effective GRY of minimally 12%, so still a buy

[skyship] 05/9/2010 16:56

Not really, even Zeros can get a bit ahead of themselves. As an example, PEWZ has a GRY of just 5.5% - certainly not value. FPEZ still cheap however...

[insipiens] 25/8/2010 16:24

silly question I suppose.... :/

[skyship] 25/8/2010 15:47

Quite so - anticipate holding to redemption in Dec'14...

[stemis] 24/8/2010 19:14

My target is 152.14p ..................... eventually.

[insipiens] 24/8/2010 19:06

what's your target SS?

[skyship] 23/8/2010 18:31

111.5p-113.0p. GRY 7.14% (before dealing exps)

[skyship] 12/8/2010 13:50

110.75p-111.0p. GRY 7.53% (before dealing exps)

[skyship] 02/8/2010 15:42

108.5p-109.5p. GRY dn to 7.7%, but still cheap v. NBPZ which now has a GRY of just 6%!

[skyship] 22/7/2010 09:12

107.5p-108.0p. FPEZ is the one constant in an uncertain World!

[skyship] 10/7/2010 13:11

106.25p-107.0p, so the GRY @ 107.55p (sp + costs) = 8.14%

[skyship] 28/6/2010 17:11

GRY @ 106.75p (sp + stamp duty) = 8.26%

[ianbrewster] 14/5/2010 09:36

Gross Redemption Yield

[skyship] 11/5/2010 08:11

GRY @ 105.25p = 8.4%

[hpotter] 25/4/2010 12:49

Thanks for the responses. Not being in income drawdown I'd not considered how the income in a SIPP is calculated when its not dividends.

In the IC 26 March '10 there was a description of a couples £3million portfolio - Mr & Mrs Michael Broke. He and his wife have £1.7m in a SIPP and most of the rest in ISA's. He listed his investment criteria and the first was not to invest in any funds. As his overall target is 7%pa and preservation of capital he might be missing a trick with FPEZ.

He'd transfered other pensions into his SIPP and had a mix of blue chip shares and corporate bonds. As my company pension will only give me about 3% I'm tempted to do likewise, but not sure its allowed, what the tax implications are or if I'm brave enough.

[skyship] 20/4/2010 11:29

Added another 5k @ 105p today - gives me a 7% allocation. Happy to leave it at that.

[davebowler] 20/4/2010 11:07

I agree its ideal for a Sipp in drawdown.

[skyship] 18/4/2010 10:24

Hi HP

I'm in income drawdown mode @ 7%pa. My point is that a secure high yielding Zero is a great SIPP investment as, even if interest rates were to soar, the capital value is underwritten - in this case for nearly 5yrs.