M&G High Income Share Discussion Threads

[rcturner2] 24/2/2016 08:10

Thanks Aleman.

[jun_man] 17/2/2016 11:45

Presumably it will be put to some kind of a vote.

I've noticed that fixed income investments are now appearing in the top 10 holdings (Gilt '17 index linked etc.) - I wonder if they are just switching out given current volatility, or whether this is a gradual switch to fixed income between now and March 17 to reduce overall downside risk.

[rcturner2] 28/1/2016 07:36

Is the wind up of this trust definite then?

[aleman] 20/1/2016 16:02

M&G High Income Investment Trust's board has resolved to declare a second interim dividend of 1.60p, an increase of 6.7% (2014: 1.50p) per income share, for the three months to 30 November. The dividend will be paid on 25 February to income shareholders on the register at the close of business on 29 January. The ex-dividend date will be 28 January 2016.

[lord gnome] 12/1/2016 19:46

20th Jan is declaration day. Ex-div will be on 28th.

[plasybryn] 12/1/2016 17:58

Ex Dividend on 20th I think. Will we see buying ahead of dividend?

[my retirement fund] 08/1/2016 23:33

Thanks. Seems to be holding up well at moment

[lord gnome] 31/12/2015 12:40

Basically, whichever is cheapest right now. MGHU only makes sense if you think that the capital value of MGHI is going to exceed 70p on wind up. Personally I think this is now something of a long shot and only a very good market run would do it. In which case MGHI is just as good a bet for anything under 70p as both will receive the same amount on wind up and the MGHC element of MGHU will retire worthless. (MGHC currently quoted at 2.1 - 2.5p, so somebody must be hopeful).

[my retirement fund] 31/12/2015 12:32

I'm confused what makes the best sense to buy, MGHI or MGHU ?

Can anyone explain what the best choice is?

[lynton3] 30/12/2015 21:48

Lord Gnome - yes, this is a very geared play on the FTSE - though the trust's benchmark is the FTSE All Share. The trust's annual income is c. 6.4p per share, and, other things being equal, this would generate a further c. 8p per share of value over the next 15 months before wind-up.

This is one of my largest holdings, and I'm wondering whether to buy some more. Hmm!

[lord gnome] 30/12/2015 12:05

Looks good to my eyes lynton3. Assuming the end value of the zeros is correct, as I am unable to check right now. If so, any increase in the nav will feed straight through to the income class. A run back to 7000 on the FTSE by the end of next year would do very nicely.

[aleman] 30/12/2015 10:38

NAV 61.12p. As these approach wind-up, you'd think the discount would narrow rather than expand.

[jimbo3352] 23/12/2015 16:52

Today's nav up to 59.64p

[jimbo3352] 23/12/2015 15:26

MGHI nav was 56.91p yesterday. If my arithmetic is correct the yield is c14%. In my simplistic view, it's worth holding for the income which will compensate to some extent for any further drop in the share price. It is unlikely that holders will get 70p on redemption but I'd still be happy with a lower figure if I do hold to term. While I do think there will be a sustained bull market, I'd be surprised if there is not some recovery between now and 2017. Perhaps Aleman can tell me if I have overlooked hurdle rates.

[plasybryn] 22/12/2015 18:23

But what is the NAV?
And next dividend in January?
Will recover strongly IMO.

[mozy123] 22/12/2015 16:19

No worries from me - I expect QE 4 before 1% Fed funds rate! :)

[lord gnome] 22/12/2015 14:51

This is looking very sick indeed. Great dividends, but the share price is dropping like a stone. There must be some concern about the final payout and what will be left for the income and capital share holders once the zeros have been paid out. We need a bull market run over the next two years. (Apologies for stating the bleeding obvious).

[aleman] 08/10/2015 16:26

M&G High Income Investment Trust P.L.C. announces that at a meeting of the Board of Directors held yesterday, it was resolved to declare a first interim dividend of 1.60p, an increase of 6.7% (2014: 1.50p) per Income Share, in respect of the three months period ended 31 August 2015. The dividend will be paid on 25 November 2015 to Income Shareholders on the register at the close of business on 16 October 2015. The ex-dividend date will be 15 October 2015.

The dividend will also be payable to holders of Income & Growth Units and Package Units.

[blackpoolsteve] 06/9/2015 09:29

As I read it,the shares trade on this crazy large spread because there are very few trades in them. Yoy're right ,the spread narrows in practice, and the buy price is 57.45,whilst the sell was about 55p.
Small sells usually mean the mm's dont want to handle them,not sure why ? - I did a "dummy" sell of 10,000 with selftrade a few sys ago,and it allowed me to proceed,so draw your own conclusions.

The board announced that at the recent AGM they were proposing hedging the shares to protect the downside in the event of a market crash. I think this will mean that NAV will be protected until March 2017,when I expect a rollover/cash exit to be offered.

Aleman is the expert here,so I hope he concurs with my observations.

Kind regards,
Steve

[jimbo3352] 03/9/2015 16:05

What's going on with the market makers today? The nominal spread is 56/60 yet buys are going through at 57.45 and sells are restricted to just 1000 shares: is this about to take a dive? I have to say I never quite grasped the full significance of hurdle rates et al but this seemed too good a punt when the yield is high and increasing and the share price is at a discount to the potential redemption value of 70p. I bought a few a year or two ago and have enjoyed great dividends and a modest capital gain.

[mozy123] 28/7/2015 20:12

Indeed - quite a few split trusts out there tho. Might be better with normal bank debt, but m&g most likely promote a replacement oeic.

Its the split capital structure that makes certain elements interesting - the investment performance is nothing to write home about. I wont be staying if the replacement is an oeic.