Alternative Asset Opps Pcc Share Discussion Threads

[renew] 29/6/2014 10:27

I was contemplating adding these until I read the following in last years results:
"Written into the contract for some policies is an expiry date (a 'term out' date), after which no more premiums will be accepted by the life office and the death benefit will no longer be payable upon death.

Where applicable, this usually coincides with the policy anniversary closest to the insured's 100th birthday. There are 49 such policies in the portfolio."
49 out of 102.
I wonder how many of those 49 are going to make the century whatever the actuaries say!

[papy02] 28/6/2014 20:49

(edited to delete my estimate of CAGR - found an error in my spreadsheet - back to the drawing board :-(

[skyship] 28/6/2014 18:43

Might I ask holders the key question. What is your expected annual return here? 6%, 7%, 8%....more perhaps...

I drop in from time to time; but so far have never bought. Minded to do so now ahead of the 2p return.

DB - do you think this is a candidate for the SL thread?

[papy02] 28/6/2014 15:58

Many thanks - you did better than I did - I found nothing.

But this is still just the RNS (incl Chairman's letter) but not the Circular itself?

[jaws6] 28/6/2014 15:41

IT IS THERE . one for you,not looking in other link

hxxp://tools.morningstar.co.uk/tsweu6nqxu/globaldocuments/document/rnsNewsItem.aspx?DocumentId=357830905354786

[papy02] 28/6/2014 15:08

jaws6, yes - that RNS contains the Chairman's letter extracted from the full Circular referred to.

What I would like to see is the full Circular - which they say (in the RNS) has been put up on the National Storage Mechanism. My attempts to search for it there:


and on the TLI sponsors website (?)


have so far come to nought.

[jaws6] 28/6/2014 12:16

papy02
Do you mean this news ?

[bdroop] 27/6/2014 22:34

I agree it would have been better to do buy backs...

[papy02] 27/6/2014 21:29

Does anyone have a link to the Circular for the Conditional return of capital please? (I can't find it on the allianzglobalinvestors website, though maybe should try harder?).

I'm a bit surprised they feel they have cash excess to requirements at this stage. I'd estimated they have enough to pay premiums through to Dec this year without any distributions and with no further maturities. That doesn't seem to leave a lot of leeway to distribute cash without risking they'll have to borrow it later under their LIBOR+3.25% loan facility.

If they do have excess cash, I would far prefer the company buys back shares in the market (currently at a 15-20% discount from NAV) than distributes cash at this stage. That would deliver a lot more value for longterm holders. I guess it must be too embarrassing for them to consider after issuing new shares to get funding 18mo or so ago. Shame though.

[stemis] 25/6/2014 18:02

Yes, I guess we've reached the tipping point.

[gingerplant] 20/6/2014 12:37

2pps return of capital to come; "...with the Company on a sounder financial footing and with a continuing flow of policy maturities, the Company could be in a position to start to return funds to Shareholders. Following a very satisfactory flow of funds from recent policy maturities..."

[flying pig] 16/6/2014 13:38

Modest asset value increase while having a valuation change of basis to write it down a bit - underlying increase on like for like appears rather better.
Unlikely to be great performance but ideal for returns which are materially better than deposit rates.

[papy02] 29/5/2014 10:46

Yes, the maturities now just about cover premium commitments through to Dec 2014, without any borrowing. Good news (except for those who make up the "maturities"!)..

I've been scaling up my position - currently have over 12% of my portfolio in these. I'm dithering over increasing further - seems low risk/ uncorrelated to market etc, and could be good return over the next few years now maturities are finally exceeding management's (much revised) expectations, and $/£ hopefully can't go too far south from here - but 12% is already a lot of concentration-risk.

[cockerhoop] 28/5/2014 16:42

And another one.......albeit a fairly modest $350,000 or 0.2p NAV

[cockerhoop] 23/5/2014 16:20

Another policy matures....NAV up 0.4p

[cockerhoop] 19/5/2014 12:26

The steady trickle of maturities continues and the cash balance is steadily improving.

[davebowler] 27/11/2013 14:23

Hi Skyship
It is implicit in the policies' Life Expectancy of 5 years ( on average) -see page 10 and on page 18 it says there is annual vote in Nov for a wind up.
Wexboys blog is worth reading too.

[skyship] 26/11/2013 18:44

dave - can you identify where in that Westhouse report it states that TLI wind-up at some future date....thanks

[davebowler] 26/11/2013 15:56

Research - www.westhousesecuritiesresearch.com/Research/iid/84254459832

[cockerhoop] 20/10/2013 17:28

Brilliant piece Wexboy........some really good comments after the blog too.

[wexboy] 19/10/2013 19:40

The Bedside Vigil...

hxxp://wexboy.wordpress.com/2013/10/11/the-bedside-vigil/

[cockerhoop] 15/10/2013 13:28

WCB,

The bulk of the assets are obviously in US$ and the company has been operating un-hedged since March 2012.

[westcountryboy] 15/10/2013 13:22

I am struck by the hit on the exchange rate - particularly as there will be a further hit, perhaps even slightly bigger, when the end Sept NAV is published. I didn't quite realise that this such was a bet on currency movements!

[cockerhoop] 15/10/2013 13:05

Another 1 reported today for $1.5m and the 'trick or treat' season just around the corner :-)

[rearsky] 02/10/2013 14:13

Stemis: not in the last quarter. 4 mortalities $6.8m...Hope the rate stays the same in the months to come.