Blackrock Com Share Discussion Threads

[lee99] 25/1/2016 22:34

@Farngorn2,

Companies like HL seem to have arrangements with funds that reduce the costs. eg for CF Woodford the charges are specified as :-

Initial charge: 0.00%
HL dealing charge: Free
Net initial charge: 0.00%
Annual charges
Performance fee: No
Ongoing charge (OCF/TER): 0.75% i
Ongoing saving from HL: 0.15% i
Net ongoing charge: 0.60%

So does not seem so bad especially when drip feeding, but understand your points as it feels more straightforward with ITs.

[neilyb675] 25/1/2016 13:53

Dividend reinvestment @ 0.4842p

[fangorn2] 22/1/2016 16:30

@Lee,
I thought the bid/offer spread was 5.25% - how do you get 0%. or has that all changed? I've not bought a Unit trust for a few years.

Last time I sold a Unit trust in my SIPP I didnt know the Sale price/proceeds for a couple of days. Don't believe the funds cleared for couple of days either.

always preferred Investment trusts myself - easy to buy/sell. Make odd exception though - the Invesco and CF Woodford Equity. Wish they were Investment trusts.

But each to their own

[lee99] 22/1/2016 14:15

Thanks for making me think a bit more about this Fangorn2, that is a good point about selling. SIPP is with Hargreaves Lansdown and reasons for considering UT:

1) The bulk of the bid-offer spread arises from the Initial charge, but that is 0%. I think that mostly leaves the Net Ongoing Charge within the UT itself which is around 1%. (Imagine the this IT has similar ongoing charge and a bid/offer spread).

2) When the regular monthly amount is added to the account there is also an added amount for tax relief; for some reason that added amount cannot be used for the regular purchase of shares/ITs (don't know why at present).

The charge for each monthly IT purchase is £1.50 + stamp duty. So I need to be saving £150 per month to get that cost down to 1%.

[fangorn2] 21/1/2016 18:27

@Lee99,

Why would you want to pay the huge B/O spread every time you drip feed. And trying to sell a Unit Trust isnt as flexible as an Investment trust (in terms of knowing price sold, exact time of sale etc)

What's the fixed charge per month for a drip?

[lee99] 20/1/2016 21:45

I am keen to invest in this fund through my SIPP on a monthly basis ie drip feeding, however the fixed charge via this method seems a bit high so I am wondering if Black Rock have an equivalent Unit Trust? I know there is the Black Rock Natural Resources Unit Trust but it does not seem to have suffered the same falls as BRCI over the past 3 years, so not sure if it is the equivalent.

Lee.

[hedley03] 20/1/2016 16:15

Wondering if buying now is catching a falling knife? Dividend will surely be cut at some point. No discount either which I find hard to understand........might start drip feeding soon.

[celeritas] 20/1/2016 14:45

FQM the second largest holding is off some 18.5%, the rest must avg around 5 to 6% down.

[celeritas] 20/1/2016 09:38

The dividend will be cut from 6p, half that is more realistic.

[badtime] 20/1/2016 09:33

.....but still glad I only dipped my toe in on this one

[deanroberthunt] 20/1/2016 08:56

Dividend will be mega on this soon at 6p!!

[8w] 15/1/2016 19:25

I had got capitulation at oil under $30 now perhaps under $25 or even $20

[celeritas] 15/1/2016 14:31

Looks like it's starting to price in further falls, most holdings are down even further now but the NAV should be close to 47p.
Capitulation or do we have to wait for a big miner to go under, a sort of Lehmans moment.
It takes a brave man to buy a commodity stock excluding gold in this climate so calling the bottom is near impossible, but it will turn at some point.

I do expect dividends to be cut, for big miners those savings could buy smaller miners for when the good times arrive again.

[badtime] 15/1/2016 11:34

Agreed in all counts

[celeritas] 15/1/2016 10:08

This still has more to play out but I'd rather have brci or similar than any one commodity stock.
Most holdings are down, blt down 5.67%, aal down 8.32% in fact a avg of most of them would be around 5%.
Current Nav should be just under 48 given today's moves.

[fangorn2] 14/1/2016 18:40

BHP-"Citigroup upgrades BHP Billiton to "BUY" TP 750p(850p) but says capex and dividend cuts needed"

Despite its commodity price downgrades, Citi said BHP still generates more than $10bn a year in operating cash flow.

[llef] 14/1/2016 15:37

miners up 5% today
us energy index up 3%
yest NAV 48.3

I have added to my holding today at price less than yest NAV....fingers crossed that we get a nice bounce at least

[fangorn2] 14/1/2016 12:01

BHP Billiton upgraded at Morgan Stanley

Stanley says shares now discount nearly a 40% dividend reduction, a cut the firm sees as necessary while noting the yield remains supportive at 6.6% even on a reduced $0.75 dividend.

[celeritas] 14/1/2016 11:27

Slightly below nav now.
When will this rout stop, on and on, seems to be death by a thousand cuts.
Will a large miner going under mark the bottom as you do have to question the huge debts a few of these companies have.

[closetinvestor] 14/1/2016 10:51

Any reason why the company keeps issuing shares (looks like at a premium price each time!) on a regular basis? Who's buying them?

[aleman] 13/1/2016 18:59

And everyone is blaming China for the fall in global demand for commodities!? It kind of takes the heat off the US, where industrial supply imports have fallen 26.5% for Jan-Oct 2015 and 28.4% in Oct.

Chinese iron ore imports hit new monthly record



Chinese crude imports hit new monthly record



Collapsing US industrial supply imports (Exhibit 3)

[closetinvestor] 13/1/2016 11:59

Thanks, Aleman.

[aleman] 13/1/2016 11:35

BRCI has been accumulating enough income to pay out a maintained covered dividend. BRWM hasn't. 4 weeks ago, BRCI said they intend to pay out 6p next year. That would seem to set a limit to how far the share price might fall. There has not been such an indication of confidence at BRWM. I expect the BRWM dividend to get cut significantly. I would not rule out a cut here, though.

There might also be better availability of loan stock at BRWM to for shorting.