Close Enhanced Share Discussion Threads

[pote] 28/1/2008 21:17

Just stumbled across this thread as i've been researching commodities, ETF(C) etc.
I'm intrigued by CED, and its discount to NAV.
What are management fees and how are they constructed

Pote

[mangal] 25/1/2008 19:23

Another way of looking at this one:
GOLD & OIL now account for 70% of the u/l & you can buy these at a discount of almost 30%; and you get 200% participation in any rise in u/l !!

[skyship] 25/1/2008 18:54

"WHAT A DIFFERENCE A DAY MAKES - JUST A WEE 24 HOURS"....etc, etc, for those of a musical bent!! In our case an NAV uplift from 258p to 270p.

[davebowler] 25/1/2008 16:55

Based on the values of the commodities as at 23 January 2008 and assuming these
values were to remain unchanged through to the end of the life of the Company,
the final capital entitlement per Share on the Redemption Date would be 258
pence. This is not a forecast nor is it a reflection of the net asset value per
Share and takes no account of any unforeseen circumstances and is provided for
informational purposes only and should not be relied upon for investment
decisions.

Commodity Start Value As at
23 January 2008
Oil $51.15 $86.99
Gold $432.85 $888.25
Aluminium $1972.00 $2371.00
Copper $3367.00 $7000.50
Zinc $1383.00 $2216.00
Commodity Portfolio = 100.00% 179.36%

*The End Value will be the average value of the Commodity Portfolio over the one
year period ending on 22 February 2010.

[skyship] 25/1/2008 13:24

The whole oil/metal portfolio heading higher so nearly added @ 198p rather than waiting for a lower entry top-up - though haven't yet!

The Stats at the moment with oil@89.5; gold@922; AL@2469; CU@7187 & ZN@2249; show an NAV of 270p & a GRY of 16.1%.

As for the cover, allowing for a fall back to 237p which would provide an underlying 9%GRY, would translate to a permitted fall of 8.92% equally across all the commodities.

Prices easing back as I wrote this - so will hold off awhile.

[skyship] 22/1/2008 15:30

A better (re)entry point might be c.183p for a bounce off the rising 200day MA and the 61.8% FIB retracement. I'll be looking for that for the other half.

[skyship] 22/1/2008 15:14

Luckily I took the turn over 210p when the portfolio of gold, oil & base metals started to come off - was intending to buy more GLA, but Tiltonboy was scooping them all up ahead of me!

So instead I bought half my CED back again today as the NAV bounced on 252p and rallied to the currrent 256p. At 191p (Free of stamp Duty - yippee) the GRY = 15.08% - about the highest I've seen it. A drift back to this morning's 252p would still provide 14.21%.

[jzd] 18/1/2008 12:32

CROP has horrendous fees and charges and is not at all transparent like CED. No doubt it will be a lot more exciting (volatile). It depends on your attitude to risk.

[mangal] 18/1/2008 10:28

ilancas, have a look at CROP - admittably not a tracker but likely to outperform softs, with downside protection too!

[ilancas] 18/1/2008 09:54

It's a shame that Close pulled CED3 which was going to invest in agriculture. I was all set to pile in.

[skyship] 18/1/2008 09:47

NAV 262p today. GRY @ 208p = 11.63%. Recession fears may yet take the base metals & Oil to lower levels; but IMO gold again looking cheap @ $875. Topped up my PHAGs today - the silver ETF.

[grim] 10/1/2008 20:50

Interestingly EBM2 is similar to CED (230% upside, matures 2012, oil & basic metals only though) and yet it trades at only 1% discount. It's brother, EBM trades at only 2% discount).

[skyship] 10/1/2008 12:41

Today's Official Update:

Based on the values of the commodities as at 9 January 2008 and assuming these
values were to remain unchanged through to the end of the life of the Company,
the final capital entitlement per Share on the Redemption Date would be 276
pence.

Commodity Start Value As at
9 January 2008
Oil $51.15 $95.67
Gold $432.85 $877.00
Aluminium $1972.00 $2,450.50
Copper $3367.00 $7,351.00
Zinc $1383.00 $2,527.00
Commodity Portfolio = 100.00% 184.61%

[skyship] 09/1/2008 09:28

With the base metals bouncing better; Gold @ 872 & Oil @ 96.7; the NAV = 276p & the GRY = 13.49% @ today's increased offer of 211p.

[tiltonboy] 07/1/2008 07:27

luafc,

Oops. Have edited my post.

thanks

[luafc] 07/1/2008 07:16

tilton:

No wonder it does well. It's got an extra 1/6 of summat in for free!

Sure you meant 1/9 each of Al, Copper, and Zinc.

[tiltonboy] 07/1/2008 06:45

Hec,

You obviously haven't done the slightest bit of research.

The fund is 1/3 Gold, 1/3 Oil, and 1/9 each of Aluminium, Copper and Zinc.

tiltonboy

[hectorp] 06/1/2008 19:46

How on earth is this up 20% since October? must have a load of gold holdings.
My 'clever' commodity holdings are down since October. That should not, be3 possible.!

[davebowler] 04/1/2008 13:23

Based on the values of the commodities as at 2 January 2008 and assuming these
values were to remain unchanged through to the end of the life of the Company,
the final capital entitlement per Share on the Redemption Date would be 269
pence. This is not a forecast nor is it a reflection of the net asset value per
Share and takes no account of any unforeseen circumstances and is provided for
informational purposes only and should not be relied upon for investment
decisions.

[skyship] 03/1/2008 13:23

199-203p: Not surprising to see the bid price moving up - with the base metals steadying, Gold @ $860 & Oil @ $99 the underlying NAV has advanced to 272p on my spreadsheet - that gives us a GRY of 14.67%. Possibly a bit of a short-term spike, but clearly CED is a good buy at this level.

[skyship] 30/12/2007 17:29

The base metals have been spoiling the party recently, still, on my spreadsheet the current NAV (at 29th Dec'07) = 264p = a GRY of 13.01% @ 203p.

[skyship] 27/12/2007 16:38

Topped up today with 5k @ 198p - the 5k I missed a few weeks back. With the NAV @ 257p the GRY is again up to 12.85%....

[davebowler] 12/12/2007 10:44

Based on the values of the commodities as at 5 December 2007 and assuming these
values were to remain unchanged through to the end of the life of the Company,
the final capital entitlement per Share on the Redemption Date would be
244
pence. This is not a forecast nor is it a reflection of the net asset value per
Share and takes no account of any unforeseen circumstances and is provided for
informational purposes only and should not be relied upon for investment

[jzd] 06/12/2007 16:18

25% discount to NAV
twice any gain in commodity prices over next 2 years
must be a good bet

[davebowler] 06/12/2007 16:06

Based on the values of the commodities as at 30 November 2007, and assuming
these values were to remain unchanged through to the end of the life of the
Company, the final capital entitlement per Share on the Redemption Date would be

250 pence.
This is not a forecast nor is it a reflection of the net asset value
per Share and takes no account of any unforeseen circumstances and is provided
for informational purposes only and should not be relied upon for investment
decisions.