If my comprehension of dinamics Is right the hedging Is included in the voice pension liabilities in the balance sheet. the reduction by half Is related to the overall revaluation of pension scheme |
 Have you taken into account the high level of rate hedging they have had in place?
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1gw - 18 Jul 2024 - 09:27:55 - 3687 of 4054
Also on pension, it looks like the liability hedging has dropped to 60%, from 80% before. More exposure to upside if discount rates move up, but to downside if discount rates move down.
This year:
"The pension maintains a 60% liability hedge via Liability Driven Investments ("LDI") and bond holdings."
Last year:
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1gw - 13 Jul 2023 - 08:17:45 - 3519 of 3687
We got some further insight into the rate hedging issue in the results I thought. Turns out they had 80% hedging, Increase in deficit seems to be ascribed rather to poor performance of property and global equity assets.
"The pension, which was maintaining an 80% liability hedge via Liability Driven Investments (LDI) and bond holdings, experienced a significant fall in the value of these assets, albeit less than the fall in the equivalent of the liabilities being hedged. Other scheme assets including property and global equity funds also experienced negative returns during the period with the resulting increase in the IAS 19 deficit." |
If my assumptions are right the pension scheme Will be reduced roughly by half
From 82M£ to 40M£ |
@ch8 I completely agree with you about reduction of pension scheme. In your opinion having moved from 2021 to 2024 10y gilt yield from 1% to 4% which kind of reduction Will see vs 2021 pension scheme value of 82M£ |
Good point ch8, and perhaps that is why somebody has popped up this morning with a 3% holding, although i note that they have acquired it all vía spread bets, which might suggest that they are in it just for a quick trade. |
Interesting to note performance of some other former problem pension funds after recent triennial revue LPA and MPAC for example. |
Some time until next RNS, pi's need a constant flow of info to keep them interested, and meanwhile it is a no go area for insti's. But i remain convinced that it will at least double from here by end 2025. |
Thanks for the explanation. |
Long wick to the downside, i.e rejection of lower prices with volume greater than the volume MA signifying strength in those moves and a close towards the top of the candle on those two days which is positive price action. |
Two buy signals ? Can you explain please. |
First equity increase their holding. Two buy signals registered yesterday and day before. |
That 475,000 trade reported late today may perhaps be them going on. |
Good to see them upping their holding today to 4.16%. They did get up to 11% in April 24 so if they are prepared to go there again, they could be a good support to a rising share price
I made a top up today. It seems like there was decent buying going on at the 20-21p level. |
The Directors’ commentary always feels a bit “glossy”, long term, high level aspirational stuff rather than tangible positive results; quite seductive for new buyers but quite easy to become disillusioned |
He was initially very very positive and I suspect many followed him in.. but, and I say but... he is very clear his blogs are not advice.But, I agree, in this case it did feel like the price was being talked up more than it should and I suspect many have been caught out. |
Now would n a great time for Carclo Directors to signal their belief in the business and buy some shares.... |
I don't was wondering about the possibility of difficulty repatriating cash from America. But maybe it's just because CR has sold out. |
And Arthur , you have mentioned worries about posible US tariffs , but surely Carclo is supplying the US market from its own manufacturing bases there, so surely tariffs will not apply ? |
Possibly US tariffs |
drop today 13pc as i write- why |
Hopefully see our new CFO purchasing some stock. This share has been asleep past 3 months |
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