Chesnara Share Discussion Threads

[gabsterx] 21/12/2018 09:48

Even if asset values are affected rising rates should not affect cash flow which is used to pay the dividend. As long as that is safe any capital appreciation swings will be rectified long term and dividend increased. Now is a good time to take advantage of juicy yields.

[jonwig] 21/12/2018 09:47

@ Sogoesit - I've been meaning to look more closely again at CSN (described by the CEO as "hopefully the most boring company in your portfolio"). maybe before the silly season gets under way.

[sogoesit] 21/12/2018 09:42

Hmmm... not convinced.
Surprisingly, they mention a (substantial) negative sensitivity to rising market interest rates.
So I am wrong for my second point which was based on a changing underlying discount factor.
Maybe that explains it.
I don't see any mention of Italian Bonds. Happy to be corrected, 'tho.
I will have to keep digging given my previous assumptions.

[solarno lopez] 20/12/2018 07:58

Spot on jonwig

[jonwig] 20/12/2018 07:53

Sogoesit - the other side of the coin is that their assets get degraded: bonds marked to market, even default (they mentioned some Italian holdings); then Solvency2 calculations enter.

[sogoesit] 19/12/2018 21:21

It does, but am surprised at its fall, illogically in my view.
If interest rates are rising CSN should follow.
If sterling is falling CSN should be rising/protected.
I think the herd has hit everything indiscriminately thereby throwing up opportunity.

[bscuit] 13/12/2018 10:27

Though the chart is unsatisfactory, CSN appears to be performing better than PHNX. In my opinion.

[eggbaconandbubble] 13/12/2018 09:44

RNS. For a moment there I got all excited - 'Had The Group Financial Director dug deep into his own pockets and bought a huge wodge because they were exceptional value for money?'

Fat chance!

[jonwig] 19/9/2018 07:06

The FCA has closed its investigations into the life companies without further action:



Countrywide the CSN one.

[jonwig] 14/9/2018 12:49

speeds - yes, thanks ... so rather opaque, and their largest slice!

[speedsgh] 14/9/2018 12:23

jonwig - Definition of Collective Investment Schemes according to Blackrock...



Also this taken from CSN 2017 Annual Report pg125 under 'Insurance contracts with discretionary participation features'...

For the CA (S&P) business the primary investment objective of the with-profits policyholder funds is that the guaranteed minimum benefits of the with-profits policyholders should be met entirely from the policyholder funds. The secondary investment objective is, where possible, to provide a surplus in excess of the guaranteed minimum benefits. The entire surplus in the policyholder fund accrues to the with-profits policyholders. Any deficit in the policyholder fund is ultimately borne by shareholders. Therefore the group has a significant exposure to market risk in relation to with-profits business should the with-profits policyholder assets be unable to fully meet the cost of guarantees. To achieve the investment objectives, the funds may invest in a range of asset classes including property, equities, fixed interest securities, convertibles, cash and derivatives, both in UK and overseas. Such exposure may be achieved by investment in collective investment schemes (including such schemes with total or absolute return objectives or which include investments in commodities). Investment guidelines restrict the level of exposure for certain asset categories. In respect of derivatives, these may only be used for the purposes of reduction of investment risks and efficient portfolio management.

[essentialinvestor] 14/9/2018 10:46

My position here is very small as not in favour of the minimal
BOD holdings (as previously mentioned). Prefer to see directors have far more skin in the game, tends to concentrate the mind, particularly when it comes to acquisitions. Appreciate others may view it very differently.

[jonwig] 14/9/2018 09:47

I was probably wrong. At 31/12/17 they held;
Equities ....................... £0.5bn
Collective Investment schemes .. £5.2bn - meaning what?
Bonds, other debt secs ......... £1.6bn

[essentialinvestor] 14/9/2018 09:36

Jon, thanks.

[jonwig] 14/9/2018 09:33

zeppo - its foreign currency earnings will improve, yes. But holding Italian bonds is maybe not so clever!

EI - I think it has more bond than stock investments, but haven't checked recently. Stock market falls will certainly impact negatively, but rising interest rates will compensate up to a point, as maturing bonds are reinvested at better rates.

[essentialinvestor] 14/9/2018 09:03

Out of favour atm.

Market concerns about potential impact of wider stock market falls?,
as we look late in this cycle..

[zeppo] 04/9/2018 11:43

speedsgh

Thank you for the link.
more
Is CSN a possible post Brexit currency play?

If the pound weakens will CSN be earning more in other currencies?


z

[speedsgh] 04/9/2018 11:19

Brief post-results interview with CEO John Deane...



John Deane, chief executive of Chesnara PLC (LON:CSN) tells Proactive's Andrew Scott the first half saw them generate more than sufficient cash to fund their dividend strategy.

[propertyman] 30/8/2018 13:43

In view of the general uncertainty in shares, current for the time being, the results look rather appealing. The share price hasn't moved much over the past few months and that shows the business is fairly stable. I know I am investing for income and remain fairly happy about today's statement.

[sogoesit] 30/8/2018 13:39

Easy to find dividend data here:



(CSN not posted yet, 'tho)

[hew] 30/8/2018 10:57

John Deane’s summary statement included:

“The strong 2017 results were most welcome as they reflected the benefits that can arise from successful acquisitions and from positive market conditions, but it is equally important that the business, as in the first half of this year, can generate sufficient cash in the absence of acquisitions and without the assistance of economic tailwinds. “

Having raised resilience and robustness, I would have liked to see a further comment on the potential impact of any substantial market/economic setback. Not so much for whatever details, but for reassurance that they have it in mind. I expect that they do, but hopefully something better than “your guess is as good as ours”.

PS: Thanks for the general comments on the results. My view is "sort of ok as far as I can make out".

[joe say] 30/8/2018 10:36

Zeppo - I wouldn't say always - some companies are very good at highlighting these early on in the statement imo

[zeppo] 30/8/2018 10:15

Why are dividend pay dates always difficult to find?

In for income so small increase welcome.

z

[sogoesit] 30/8/2018 09:30

"desperate"... Lol!

I live in Hope... and that's not a small town of the same name!

[jonwig] 30/8/2018 09:27

Sogoesit - yes, according to Phoenix there are lots of companies keen to offload their closed books. Some of them might be desparate enough to give us a price we'd like.