Chelverton Uk Dividend Share Discussion Threads

[brucie5] 26/5/2023 14:26

Ken, thanks very much. I must do some research, clearly.
I'd never heard, for example, of 'hurdle rates'.

"Splits talk about ‘hurdle’ rates. This is the annual rate of growth required for the zeros to hit their target, or for ordinary shareholders to get back the original capital of 100p per share."

hxxps://citywire.com/investment-trust-insider/news/what-are-split-capital-investment-trusts/a1212113

So a with a share of this kind, once has at least two different lines of research! Firstly into the underlying folio, and secondly into the progress made towards the capital target.

Very happy to be educated.

[kenmitch] 26/5/2023 10:32

Brucie5.

Does this help?

Chelverton is not an ordinary Investment Trust. It’s a split capital Trust. Split Capital Trusts have two sets of shares. There are the ZDP shares AND the ordinary shares covered on this thread. The ZDP shares pay out a fixed amount at a specific date. Investors in the ZDPs do not get any dividends. The ordinary shares you are probably holding get all excess capital once Chelverton have got sufficient cash to pay out their ZDP shareholders. And if it can be afforded, the ordinary shares also pay a dividend.

I prefer the standard Investment Trust choices.

[dr biotech] 25/5/2023 13:24

I've certainly had worse days than -2%. But that combined with the premium to NAV, fairly average performance over recent years plus the high fees just lead me to believe it was a good time to look elsewhere. I have several other smaller company trusts that have performed worse, but they are all at a discount to NAV (-14%). Just felt that it was a good time to sell.

[brucie5] 25/5/2023 11:15

Dr Biotech24 Apr '23 - 15:49 - 93 of 94


For those that haven't noticed - and in fairness I don't normally track the daily announcements- the NAV fell 5p as their 2nd largest holding Ienergiser has said its going to delist from AIM causing the shares to lose 90% of their value. I know that these things can't be predicted but its got me wondering about how much due diligence they do, and whether they are worth the higher than average 2% fee. Answer for me is "no".
------------------------------------------------------------------------
Dr Biotech, if I lost say, 2% of my folio on a situation like this, I would not be best pleased, it's true. But neither would I be too upset. That's diversification. I like a lot of these shares and like you, hold some. The trust is now yielding just over 7% I believe?

[brucie5] 25/5/2023 10:33

Is anyone able to explain this provision to me in simple terms, please, and how plays out in term of risk to shareholders?

From the AIC website:
hxxps://www.theaic.co.uk/companydata/chelverton-uk-dividend-trust

Objectives:

To provide Ordinary shareholders with a high income and opportunity for capital growth, having provided a capital return sufficient to repay the full final capital entitlement of the Zero Dividend Preference shares issued by the wholly owned subsidiary company SDVP.

Wind-up provisions:

The Directors are required to convene a General Meeting of the Company to be held in April 2025 to align the vote with any timetable for a further issue of Zero Dividend Preference shares. They may save costs by proposing the Continuation Resolution at the Annual General Meeting or some other General Meeting of the Company, at which an Ordinary Resolution will be proposed to the effect that the Company continues in existence.

TiA.

[dr biotech] 24/4/2023 15:49

I've sold up here - last lot today (for some reason its not showing, a 5k sell around 3pm)

For those that haven't noticed - and in fairness I don't normally track the daily announcements- the NAV fell 5p as their 2nd largest holding Ienergiser has said its going to delist from AIM causing the shares to lose 90% of their value. I know that these things can't be predicted but its got me wondering about how much due diligence they do, and whether they are worth the higher than average 2% fee. Answer for me is "no".

With the shares at a decent premium to NAV for no obvious reason, and with me holding directly 4 of the top 10 anyway I have sold. Pretty much the same price as I bought many years ago, so I ended up the dividend payments. Had worse I guess.

[1jasper] 20/2/2023 10:21

They raise about £90,000 for a fund with gross assets of about £50m, one of their companies raises some funds for an acquisition, and that makes you think they have inside information?

[teleman2] 11/2/2023 10:13

Makes you wonder...sdv issues new shares and then 2 days later there largest holding dec announces a snap share placing no insider info of course

[2wild] 08/2/2023 16:17

NAV up 9% so far in 2023 from 169.87 to 185.22p. Would like to see these at a discount to nav before buying

[uapatel] 07/2/2023 16:06

Only a small position here (5K shares, recently built), but hoping to add on that through the year. Will review as year progresses based on liquidity and share price progression.

[2wild] 07/2/2023 14:30

After trading at a premium for best part of a year, SDV finally got around to issuing some shares at 190p. About 2.5% Premium to NAV. Only £95,000 worth but a good start.

[aleman] 25/10/2022 12:29

Here's one to watch as small caps tend to lead both downturns and recoveries. Small caps have underperformed mid caps over 2 years and 1 year. They're level over 6 months but have outperfomed over 1 month.


free stock charts from uk.advfn.com


free stock charts from uk.advfn.com


free stock charts from uk.advfn.com


free stock charts from uk.advfn.com

[2wild] 22/9/2022 21:44

Holding up surprisingly well. They were trading around 170p several months ago, when NAV was over 15% higher. Probably will drop quite a bit on next ex-dividend day.

[chc15] 15/8/2022 13:18

Dropping back not great, reasons ?

[brucie5] 30/6/2022 10:29

Final results statement out - instructive reading.

[2wild] 09/6/2022 15:10

For anybody looking to buy or sell Spread is currently just 1p 175-176, as I type. A few weeks ago it was 19p. Discount two nav is around 10%.

[2wild] 01/6/2022 20:45

NAV down 13.8% in 2022 from 223.24 to 192.39p om 31st May.

At 170p discount to nav 11.6%.
Annual yield 6.5% plus any special dividend.

[2wild] 30/5/2022 16:14

NAV ticking up nicely to 191.65p 27th May close. Added at 173.5p, 9.5% discount to nav.

Although spread is showing 165-175 can sell at 170 and buy at 173.5p.

[chc15] 13/5/2022 10:34

Yes good time to buy, am holding long term.

[2wild] 12/5/2022 16:32

Got back in here at 162p on a 12.5% discount to NAV and 6.8% dividend yield.

[chc15] 12/1/2022 16:50

Bit of a dip, want to buy, but maxed my isa already.

[2wild] 05/1/2022 13:19

Good start to the year with NAV up 2.5p to 225.77p. Added at 205.4p a 9% discount to nav.

[2wild] 04/1/2022 11:50

NAV up 33% in 2021 from 167.8p to 223.24p.

Paid 206.7p today, 7.4% discount to nav and 5.3% annual dividend yield plus any specials.

[dr biotech] 19/10/2021 16:36

It’s certainly a good time to buy in terms of the NAV - that’s a big discount. As long as the assets perform it’ll do ok. I feel there is a bit of nervousness about. Many of my smaller (mostly growth) shares have taken a tanking over the last 6 weeks. Luckily had playtech which has kept me in the black this month.