Uil Share Discussion Threads

[morton2011] 20/6/2016 16:10

vacendak: thoughtful post on 7 June. Is it normal/ expected that only 31.5 % took up the rollover offer, seems like they had to use their own money to make up the subscription as per todays rns "In addition, 9,000,788 new 2022 ZDP Shares are being subscribed for at 100p per 2022 ZDP Share by UIL and will be held by UIL for investment purposes in accordance with its investment policy." As all the previous ZDP have gone to a premium seems kind of ok and fits their profile in that they love investing in themselves or ICM in house pet projects.

Their current portfolio of investments looks quite well balanced for the long term so happy to take the full entitlement for my shares.

[vacendak] 07/6/2016 11:43

I bought my full entitlement of ZDP2016 (UTLC) when they were issued in 2007, having been with Special Utility Trust/Utilico/UIL for quite a while at the time already.

They gave 7.25% per year equivalent during their lifetime. They give no dividend (as per their name) but they compound. The monthly factsheet from the UIL website states how much "yield equivalent" is left per class (ZDP 2016, 2018 and 2020) if held until maturity so, yes, these are doing roughly 5% at the moment.

I have taken the rollover offer, to ZDP 2022, not 2020. With the rollover, they also intend to sell more ZDP 2020, but this is a separate transaction. The new 2022 will give 6.25% equivalent per annum (all the other ZDPs gave 7.25% equivalent from inception).

Why did I accept? The company pays its bills. The covers on the various ZDP class are decent enough. They do not sound desperate, in the sense that I could only rollover 55.979% of my holding, although one can ask to rollover the whole amount. They have rolled over their ZDP 2012 and 2014 in the past and provided a small conversion bonus, there is none this time, so again I guess that UIL expects to sell its zeroes easily.

By definition the accrued capital is fixed and guaranteed as long as UIL/UIL finance does not go belly-up, so the ZDP will never give back more than their stated redemption. They tend to trade at a premium and their spread is relatively low.
The NAV trend is obviously a straight line, so it is easy to check. The accrued capital per class of ZDP is included with the weekly update on the main UTL NAV bulletin.

[glynnef] 03/6/2016 21:48

Are there any UTLC holders here? I have held since mid 2013 and seen a fairly steady, if unspectacular, rise in the share price of around 5% pa, but I confess I haven't followed the rise in NAV too closely. Is anyone thinking of accepting the rollover offer into 2020 ZDPs, rather than taking the full final entitlement of around 192.7p on Oct 31st?

[davebowler] 19/4/2016 12:59

hxxp://www.uil.limited/files/7414/6098/6410/UIL_Factsheet_March_2016.pdf

[martincc] 15/4/2016 15:59

Some buying interest this week and NAV up strongly, last week 178.78p, this week 196.49p

[praipus] 12/2/2016 12:49

db X-trackers MSCI Emerging Mkt Short Daily ETF



DB X-Trackers MSCI Emerging Mkt Utilities ETF

[vacendak] 27/10/2015 13:48

Quaterly dividend declared at 1.875p per share. Unchanged since 2013, at least this is steady.

[praipus] 16/10/2015 14:28

Due dilligence underway on the WIND holding and 10p for free at the moment "IF" it happens:)

[praipus] 16/10/2015 12:40

Could be, depends who holds it and when they want it back I suppose.

What do you think the maximum level of debt should be?

Do you know any investment trust that operate without leverage? If so how is their share price doing?

[russman] 08/6/2015 20:09

The leverage built into the ZDPs and cross holdings is a double edged sword.

[russman] 03/6/2015 21:34

Risky but the discount makes up for it.

[davebowler] 13/4/2015 16:04

UEM has had a really good track record compared to the average Emerging Market fund and is on a 8% discount to NAV

[burkedavid] 19/1/2015 20:16

Nice rise here

[topvest] 27/9/2014 16:52

This is a very deep value play now. Stated NAV is c30% lower than underlying value given the double discount on their platform investments. Whilst I think that their platform investments is not a bad idea from a LONG TERM INVESTMENT PERSPECTIVE its causing a double hit on discounts. Not rocket science to understand this; an investment trust on a discount holding shares in an investment company on a discount = MASSIVE DISCOUNT. There is lots of value here on a 6.5% yield and a 50% discount.

Of course, there is considerable risk as well given the high leverage from ZDPs. At least the investment manager has halved his fees until performance improves. I like the Somers, UEM and Infratil platforms. Overall, you are deciding whether the manager is good or not. On balance I think they are better than average, but there is probably a question mark over whether they have too many strategies on the go outside of their core area.

[praipus] 14/2/2014 10:59

Hi TykeThat, looking at the monthly fact sheet I would guess it's the impact of currency + minor stock volatility which are magnified by gearing in the capital structure. The cure is to buy some z's too:-)

What else are you holding or buying at the moment?

[tykethat] 13/2/2014 21:41

Resolute mining only part of the equation here, even if it went to zero value it cant explain the dramatic decline of Utilico. Most miners have shown some improvement in 2014, not the ones owned by UTL it would appear !

[praipus] 23/12/2013 12:04

NAV on 20/12/2013 significanlty higher than 12/12/2013 NAV....

[topvest] 16/12/2013 20:55

Yes, at least it can't go down much more!

[praipus] 16/12/2013 09:21

Chart isnt pretty


ICM /Utilico buying more though:)
hxxp://www.resolute-ltd.com.au/wp-content/uploads/2013/12/553-031213-Substantial-Shareholder-Notice.pdf

[redartbmud] 15/12/2013 10:37

Resolute Mining - gold producer.
10.6% of portfolio.

[topvest] 14/12/2013 21:11

Anyone following the steep decline in NAV..anyone know which investment has caused this fall?

[praipus] 09/9/2013 16:59

Major holding WIND selling one of its Wind farms. :)