M&G Equity Share Discussion Threads

[purse] 11/2/2005 08:40

soysoy

Have you looked at another M&G Cap MGHC, it appears to be very similar in performance. Also has a wide spread.

[soysoy] 10/2/2005 21:47

thanks for that amp

[amp6] 10/2/2005 19:43

SOYSOY

re Your query on wind up date:

According to splisonline, its a long way away: 8.3.2011

How high?

Don't know, watching the FTSE100 and S&P500 like a hawk.

When the market turns, I'm out.

David Schwartz, stock market 'historian' says 3 months before a General Election is bearish if polls are signalling a Lab win; bullish for Tory win. If election is early May, then lets hope for PM Howard!

[soysoy] 10/2/2005 16:24

tell me about it
i am only just equal bought 16p
you after buy them at 19p now
another rise tomorrow and i should be in profit

[purse] 10/2/2005 16:19

Nice to see the offer rising, but the spread does not encourage anyone.

[soysoy] 09/2/2005 19:43

amp perhaps you can help with then
when is wind up date and how high do you think it will go

[amp6] 09/2/2005 19:15

DEAR SOYSOY

I'm impressed by your optimism on this one: 30p in 2 months time!

I came across this by chance: I was researching MEQI, and got tempted by MEQC(14.9p, 4 Feb 05). The spread is HORRIBLE.

Let's hope market does not crack until May.

My other split caps have done nicely in last 3 months: Ecofin Water(ECWC), FRAMLINGTON INCOME &CAP(FRNC)and Aberforth Geared Capital(AFHC).

All have a lower risk, if you believe today's Hurdle% on splitsonline:

AFHC HAS +0.5%
ECWC HAS +0.6%
FRNC HAS -0.2%
MEQC HAS +4.6%

Best performer to date is ECWC; worst FRNC, exactly the opposite of what I expected! Don't understand, but I'm not complaining.

[soysoy] 09/2/2005 17:30

any had for years thencomes into life

[soysoy] 09/2/2005 17:26

Risk versus reward
With most investments, the higher the risk, the higher the potential rewards. There is a degree of risk in all investments and in extreme circumstances you could even lose all your money. Because no two investment trusts are the same, it is not easy to make a precise assessment of risk when it comes to the performance of markets, sectors and companies. Markets are inherently unpredictable. Sectors that look unhealthy may start performing strongly and steadily, and companies that look dominant may suddenly reveal weaknesses.

Most investment literature contains details of past performance showing how an investment has performed to date. It is crucial to note that this is no guide or guarantee of how the same investment may perform in the future. You should never buy an investment trust purely on the basis of past performance without considering other factors, such as the trust's operating costs, the level of risk, your investment objectives, the type and size of the trust and so on.

[soysoy] 09/2/2005 17:25

There are hundreds of investment trusts to choose from, but you can narrow the choices by being clear about why and how you're investing. These four questions should help:

• What do you want from your investment? - Do you want a regular income or are you putting money away for a number of years so it can grow, or do you need a combination of income and capital growth?

• Will you invest a lump sum or make regular payments? - If you have a lump sum, you can invest directly (or via a wrapper product such as an ISA or savings scheme) in an investment trust. If you want to make small regular payments, you probably need to invest in a wrapper product. One of the advantages of regular saving is known as 'pound-cost averaging': you avoid the risk of buying all the shares in one go when the price is high.

• How much risk do you want to take? - Roughly speaking, the level of risk you might be prepared to accept depends on how long you can tie up the money. But only accept a level of risk you understand and feel comfortable with.

• Do you want to invest in a particular sector? - Investment trusts are grouped into different sectors investment objectives will vary and no two trusts are the same. Different regions of the world and economic sectors will have varying levels of risk.

[soysoy] 09/2/2005 17:24

Investment trusts are companies that invest in the shares of other companies. They are a popular way of investing for income, growth or both.

The money you invest is pooled with that of other investors and a professional fund manager then buys shares in a wider range of companies than most individual shareholders would have access to. By pooling money and investing this way even people with small amounts of money can gain exposure to a diverse and professionally run portfolio of shares, spreading the risk of stockmarket investment.

Trusts often specialise in particular sectors and types of company such as communications or alternative energy producers. Others specialise in companies from different parts of the world. There are over 300 investment trusts responsible for the management of billions of pounds worth of assets on behalf of investors.

[soysoy] 09/2/2005 17:23

Depending on the level of risk you are comfortable with and the type of return you are looking for, there are various investment trust options.

Conventional investment trusts
Unlike split capital trusts, conventional investment trusts issue only one class of ordinary share. Depending on the trust's objectives, these usually give shareholders a right to dividends and the opportunity to increase the value of their investment. Conventional investment trusts vary greatly and may be designed to provide you with income, growth or a combination of both. The trusts also come in various sizes making them suitable for anything from a core investment to an addition to your existing portfolio.

Some conventional investment trusts are what's called a 'fund of funds' and invest in other investment trusts, which means they take advantage of another layer of investing expertise (the fund managers in those investment trusts). This can give good results, but the disadvantage is that you may be exposed to additional layers of operating costs and gearing. They may also invest in trusts trading at a discount, when they think this represents a good buying opportunity.

Split capital investment trusts
Split capital investment trusts - or 'splits' - are more complicated types of investment trusts. Splits are companies with a portfolio of investments just like conventional trusts, but they issue two or more different types of share. Each type of share has different rights to participate in income and capital returns from the trust's portfolio enabling investors to get both from the same trust if they choose to. Splits can be useful if you need a return over a fixed period.

Zeros
Zero dividend preference shares - 'zeros' - have a limited life. They do not provide income but are set up with the aim of delivering a pre-determined capital return to investors when the wind up date is reached. This is called the redemption value. A zero's rate of growth is also pre-determined by the trust at launch. This means that even if the trust performs better than expected, zeros still only pay the amount set at launch date. Although the redemption value may be pre-determined, this is not a guaranteed return, if the trust performs poorly, the company may not be able to pay out the pre-determined amount. It is crucial to be aware that you may make less of a profit than you expected or even lose part or all of your money.

Income shares
Income shares aim to provide shareholders with regular returns in the form of share dividends generated from the trust's investment activities. Some income shares also have entitlements to some of the trust's capital on wind-up. Any capital entitlement is usually pre-determined by the trust, in other words, it will not be more than a fixed amount, although it could be less. There is no guarantee that you will receive the pre-determined amount if the trust performs poorly.

Ordinary income shares
Ordinary income shares combine the regular dividend payments of income shares, with the prospect of capital growth. On wind-up, ordinary income shares have no pre-determined capital value. This means they are entitled to any surplus assets after prior ranking charges and share classes but they are usually ranked last in the trust's repayment order. This means if the trust does well, ordinary income shareholders are likely to do very well indeed, but if it does badly, they fare very badly. By implication they are higher risk.

Capital shares
Capital shares offer potential for above-average capital growth but at high risk. They pay no income and there.s no cap on the return at wind-up. Capital shares have the last call on the trust's assets at wind-up. These shares are very high risk.

[soysoy] 09/2/2005 17:10

9 February 2005

M&G Equity Investment Trust P.L.C.

The Board of M&G Equity Investment Trust P.L.C.
announce that the net asset value at 12:00 noon today
was £190.5 million.

Income Shares 3.68p

Capital Shares 42.03p

Zero Dividend Preference Shares 62.19p

Package Units 107.90p


every day the asset change price everyday

[soysoy] 09/2/2005 17:07

yes it investment trust
one part is given in income which is not this part

the other one part is given in captical
there is finish date and you should get at least 40p per share
as the stock market is rissing you could get say 60p in 2years time per share
you can buy sell the unit in the investment trust at any time
i would think 30p would be my target for in 2mounths time
if you do invest only put in what you can afford to lose as in most shares


a lot of split caps got of bad publicty as they invested in other split caps
this not the case with this one

[ppowerscourt] 09/2/2005 16:00

Very interesting, Soysoy.

Honestly, I have never seen anything like this ever!

Will this rise continue? I have no experience with split trust.

[soysoy] 07/2/2005 17:42

February 2005

M&G Equity Investment Trust P.L.C.

The Board of M&G Equity Investment Trust P.L.C.
announce that the net asset value at 12:00 noon today
was £189.7 million.

Income Shares 3.53p

Capital Shares 42.16p

Zero Dividend Preference Shares 61.79p

Package Units 107.48p



END

[soysoy] 02/2/2005 17:55

2 February 2005

M&G Equity Investment Trust P.L.C.

The Board of M&G Equity Investment Trust P.L.C.
announce that the net asset value at 12:00 noon today
was £187.2 million.

Income Shares 3.51p

Capital Shares 40.74p

Zero Dividend Preference Shares 61.79p

Package Units 106.04p

[soysoy] 25/1/2005 15:51

25 January 2005

M&G Equity Investment Trust P.L.C.

The Board of M&G Equity Investment Trust P.L.C.
announce that the net asset value at 12:00 noon today
was £184.1 million.

Income Shares 3.44p

Capital Shares 39.08p

Zero Dividend Preference Shares 61.79p

Package Units 104.31p

[soysoy] 24/1/2005 14:46

24 January 2005

M&G Equity Investment Trust P.L.C.

The Board of M&G Equity Investment Trust P.L.C.
announce that the net asset value at 12:00 noon today
was £183.1 million.

Income Shares 3.43p

Capital Shares 38.52p

Zero Dividend Preference Shares 61.79p

Package Units 103.74p

[soysoy] 20/1/2005 17:28

Income Shares 3.42p

Capital Shares 38.75p

Zero Dividend Preference Shares 61.79p

Package Units 103.96p