Gen.acc.8se.pf Discussion Threads

[tag57] 09/7/2022 20:53

That is what I am hoping Skyship. Decent income, downside protection (somewhat), nice compounding and potential upside if interest don’t continue upwards (which I doubt). I am somewhat surprised that these don’t get discussed more.

[skyship] 09/7/2022 16:50

Capital protection! I would expect some nice capital gain from this level. A 6.33% yield would mean an share price of 140p, ie a gain of c17% from yesterday's level.

[tag57] 09/7/2022 16:06

Invested some of my SIPP in this, GACB, AV.B, ELLA and RSAB over the last few days. Compounding the income over the next 4 -5 years prior to retirement should provide some nice income growth, with limited potential for BoE to push interest rates beyond current expectations will hopefully provide some capital protection. May add further if share price drops any more.

[nerja] 09/7/2022 15:30

Skyship did the same myself also Gacb, i will keep adding each month this year

[skyship] 09/7/2022 14:22

At the close of 119.2 the yield = 7.4%. I added at that as I expect inflation and interest rates to be back on target by end 2023, if not sooner.

7.4% a very nice rate for a corner of my SIPP.

[aylingd] 08/7/2022 21:09

Thanks for the replies, very helpful.

D.

[ramellous] 08/7/2022 12:02

Big interest hikes don’t seem too likely and GACA were trading at an average of 140p when interest rates were 5% 15 years ago.

[ramellous] 08/7/2022 11:59

From ADVFN front page news this morning.

UK Inflation Expected to Fall Back to 2% Target at End 2023

0702 GMT - The recent fall in commodity prices has improved the inflation outlook in the U.K., Pantheon Macroeconomics' chief U.K. economist Samuel Tombs says in a note. Consumers won't see the benefits of falling prices for a while, but at least producer prices should fall rapidly at year-end and into early 2023, he says. "We expect core goods CPI inflation to fall eventually to a minus 1% rate toward the end of 2023, from 7.2% in May, implying a strong chance that both the core and headline rates of CPI inflation will be below the 2% target by the end of next year," Tombs says. ([e-mail])

[makinbuks] 08/7/2022 09:15

I guess inflation is the real enemy of fixed interest, rises in interest rates are supposedly factored in so would only affect the price if they increased further or faster than expected. If you buy now you are losing money in real terms but its how you benchmark against other possible products

[aylingd] 08/7/2022 08:58

Yield must be attractive here. What is driving the share price down, inflation, prospect (certainty !) of further interest rate hikes.? A genuine question as I would like to add here but obviously, probably foolishly, looking for a bottom.

D.

[skyship] 02/7/2022 08:18

Yields at offer prices:

# AV.A 8.75% @ 122.0p-123.0p = 7.11%
# AV.B 8.375% @ 117.5p-121.0p = 6.92%
# GACA 8.875% @ 120.5p-121.0p = 7.33%
# GACB 7.875% @ 109.0p-110.0p = 7.16%

AV.A & GACA recently went XD...

[skyship] 17/6/2022 10:26

Yields at offer prices:

# AV.A 8.75% @ 123.6p-124.6p = 7.02%
# AV.B 8.375% @ 119.7p-121.0p = 6.92%
# GACA 8.875% @ 122.5p-123.3p = 7.20%
# GACB 7.875% @ 115.0p-116.0p = 6.79%

Yields moving through the 7% level...

[nerja] 16/6/2022 13:42

Got them at 124.4 so ell in the spread.

[nerja] 16/6/2022 13:40

Starting to dollar cost average 3k for Sipp 2k for isa, just seem to be at a level to start getting back into over the rest of the year hope to drip feed in monthly .

[makinbuks] 01/6/2022 13:11

Premium to what? You mean the price didn’t fall by the full 4.43p dividend?

[my retirement fund] 01/6/2022 08:06

Tried to buy more but market makers having snaffled the dividend now offering at a premium, greedy!

[cwa1] 01/6/2022 08:04

XD today, pay day 30/6

[holts] 31/5/2022 19:13

Bit of a disconnect with av.a rise today and here

[skyship] 28/5/2022 08:12

Agreed - looks very oversold, especially as it goes XD next week.

A whole load of inflationary items drop out of the stats later this year; so inevitably inflation will reduce of its own accord; so no need for central bankers to panic unduly. Nor will they as the cost to governments of higher interest rates would be immense.

[ramellous] 27/5/2022 11:44

Looking at the long term chart, these were between 130 and 150 Fromm 2005 to 2007 when interest rates averaged 5%. Looks oversold here.

[my retirement fund] 27/5/2022 11:23

If your in it for the long term you have to think about the compounding interest at this level too and look past short term interest rate or inflation spikes.

[cc2014] 27/5/2022 11:17

Regardless of the outcome CWA1 it's nice to have options, stuff that we can actually buy which we can debate whether it is fairly priced or not but at least isn't recklessly overpriced. I can't say I'm excited about the price of GACA at 133p but it's considerably better than 160p which is where we were 9 months ago. It's a price I'm at least intersted in and monitoring daily.

For me it all depends on what the BOE are going to do about inflation. The BOE's remit is to deal with inflation and if it's going to actually do that then interest rates need to rise. Yesterday the Chancellor repeated the position that the government can't keep pushing more stimulus into the system as it will make inflation even worse. So, it's all down to the BOE. In the end I think they will do what is required albeit at the moment they are way behind where they should be.

[cwa1] 27/5/2022 09:44

Fair enough CC2014, hard to argue really. I suppose I'm taking a bet that 7%, tax free in an ISA, is good enough that I'll get a decent return at some point in the medium term and I'm being reasonably well paid whilst I wait to find out. Of course, it could all well go wrong and I'll regret not having waited for a lower entry price :-)