Legal & General Share Discussion Threads

[cwa1] 24/11/2023 08:15

I think the market's just yawned and said: business as usual, so what? However, given the trumpeting in the announcement and the scale of it I think the company itself feels pretty upbeat about it...

[lord gnome] 24/11/2023 08:11

The market is clearly unimpressed.

[muscletrade] 24/11/2023 07:57

"We operate a capital light business. We have deployed GBP270 million of capital to write GBP12.1 billion of UK PRT. [4] As indicated at HY23, we expect to achieve self-sustainability on the UK annuity portfolio again in 2023.
A strong solvency position providing significant firepower, and a progressive dividend
As at 17 November, and net of this transaction, Legal & General's solvency ratio was estimated to be 224%. [5]
This strong solvency position provides the Group with significant firepower to continue to invest in attractive growth opportunities. The Board continues to weigh investment carefully against the relative attractiveness of returning additional capital to shareholders.
As highlighted at the HY23 results, we continue to expect Net Surplus Generation (Operational Surplus Generation plus New Business Strain) to exceed dividends in 2023. The Board has announced its intention to grow the dividend at 5% per annum to FY24".

[lord gnome] 24/11/2023 07:51

That looks to be a smart piece of business. I don't doubt it will be profitable for LGEN.

[this_is_me] 24/11/2023 07:29

Today's announcement means GBP13.4 billion of global Pension Risk Transfer (PRT) business year to date. That compares to the market cap of £13.6 billion.

[garycook] 24/11/2023 00:53

MC, Have you considered some GLEN for diversification. I am also looking at HFEL atm, with its 11% yield, and I have purchased WDS this week 52 week low, and yielding around 9%. Also if you bought some DEC in the SIPP you would get the dividend currently 19% gross, and there is a 20/1 consolidation around Dec 5,because DEC is being listed in the US. So the shares will be worth around 1440p,and not 72p.

[zac0_4] 23/11/2023 23:46

I've been moving away from individual shares into investment trusts. Less risk of permanent loss of capital.

I've also taken the decision to reduce my exposure to dividend paying assets to around a maximum of 25% of my total portfolio value.

After 25+ years of investing I've finally realised I'm happy with the returns 'the market' delivers. On that basis more and more of my capital is simply being invested in, and moved into, global equity index tracker funds / etfs (LGGG, IUQF and RSGL. Good luck.

[wllmherk] 23/11/2023 15:19

Mike, if I may be so informal, that is a nice spread of shares, I hold 3 that you mention PHNX, LGEN and RECI, my portfolio as a whole is yielding around 9%. There are too many rules around pensions for my liking and as you point out with an annuity the capital is effectively lost. Therefore, over the last few years, I have been using my wife and my ISA allowance and now have a monthly income that will allow me to fully retire later this year, I'm 57 yrs old. I don't understand why anyone would pay eye-watering fees for someone else to manage their investments, after all, no one cares about your future more than you do.

wllm :)

[mcunliffe1] 23/11/2023 14:48

CASSINI: Great post, giving first-hand experience. I think the timing of your move was coincidental with the current market malaise.

I had a Standard Life pension up until March 2023. I was unhappy with their lack of customer service and to some extent, with their fund performances given what I was being charged.

So I moved. To a SIPP at Interactive Investor. The move had to be in 'cash' so everything was sold at S.L. then moved. I still hold £117k in cash and about £82k in shares spread across seven companies. They are PHNX, LGEN, DGE, BATS and SMDS. I also have TFIF and RECI.

In total, I have a SIPP that is almost the same value now as it was at the outset in mid March. Given the decline in shares across the FTSE100 and 250 I count my blessings. Had I stayed in the S.L. UK Smaller Companies fund I believe I'd be down about 6.5% - and having paid for that loss.

I.I. pay a reasonable rate on cash holdings in a SIPP (and a trading, ISA account). That helps.

I have most of my £80k+ in PHNX and LGEN. £30k and £25k respectively. I'm invested here almost entirely for dividend income.

I see these (and more in the future as I look for new opportunities) as a viable alternative to buying an annuity. OK, it's not a guaranteed income to support my yearly drawdown, but an annuity is a guaranteed surrender of your capital with a guaranteed income - but only whilst you live.

[thamestrader] 23/11/2023 14:35

Within the L&G stable, L&G Global 100 index has served me well, and L&G Global Technology Index has been a mega-star over the long term, but plenty of downs and ups along the way.

[marktime1231] 23/11/2023 14:08

Sounds like you made a good short-term switch, but in the long term they may still be right with their generic advice. For example I think MSCI World / S&P 500 index trackers are performing relatively well again. The killer for most people in conservative or balanced portfolios will have been the slump in bond prices, but they too will rebound when inflation is back under control.

Didn't the government oblige all financial services providers to warn clients about the danger of holding cash during a period of high inflation? At the same time the government is critical of the investment management industry pulling funds from British equity.

If you are happier making your own investment decisions why not transfer it to a SIPP and save yourself the fees? I took my main Norwich Union pension out of the hands of Aviva in this way back in 2015/16, they were charging 1.5% pa in fees while avoiding my enquiries about that, and the pot was shrinking. It doesn't stop you buying an annuity from LGEN if that is your plan, they always used to be top of the tables.

[cassini] 23/11/2023 13:45

Anyone have a pension with L&G? I have a small pension with them and noticed my pot was going backwards in Feb 2022 so moved from the part-cash(5%)/part bonds(18%)/part equities funds they had me in, entirely into their Cash 3 (money market) fund.

They kept sending me letters saying that I ought not to be in a cash fund as inflation would eat away at my returns but I just looked at my returns since then and although I'm up only a measly 5%, I noticed that the bonds they had me in (comprising 18% of my exposure) were down 33% since then and the equities multi-asset fund was down several % too.

Had I taken their expert advice I'd have been materially worse off.

Now though is maybe the time to pick one or two of their non-cash funds to get back into. Does anyone have a recommendation? A bit of an esoteric question I know, most here will be invested with them via the FTSE, not a customer.

[jubberjim] 23/11/2023 06:25

Most of my holdings struggling to make any meaningful gains
Especially the financial ones

Holding up due to lack of any sellers and even fewer punters looking to buy

The only bright sparks this week have been my smaller companies CPI ,MARS, and up until yesterday SDY and KGF when they took a small tumble

Swings and roundabouts but markets extremely nervous and investors very reticent

By the way KGF I picked up around the 202 mark which I believe might be nearer the aforementioned 5 year low than stated elsewhere

States on holiday today so don t think too much today

Dividends await although some way off

[adejuk] 22/11/2023 19:52

elliotts suggest a pause but at this share price wgaf
almost 10% divi
mad not to if you are a divi investor
a trader would not touch this with your money

[123trev] 22/11/2023 18:21

Think we are going back to recent lows then lower no catalyst to do any other.

[123trev] 22/11/2023 18:15

When you don’t really no what to do then do nothing I suppose dabbling in investing is complicated and when they do it’s a disaster if past experience is anything to go by something on dealing with merging pension pots though and picking where you want to put your money that can be good or bad here! Basically they gave a little back after taking a lot probably to cope with future rising prices to come. Key message that tax burden is going to keep rising with little growth and any recovery tornado could take longer than you might think we are in a very murky pond.

[arai] 22/11/2023 15:55

yump, have you got that rubber ruler available, that was me all wrong with the charts, still looking to get in but I still fancy a drop to buy in to.

[tornado12] 22/11/2023 14:34

I do believe financials/pension funds will recover next year with stable/falling interest rates and bonds. But growth remains in the doldrums, held back by high debt and taxation increases fueled by pay rises. I have zero faith in any political party today .. they are all rubbish

[tornado12] 22/11/2023 14:27

I didnt see anything in the statement to improve savings and investments or pension reforms. Seems like that can is kicked down the road again

[123trev] 22/11/2023 11:45

Well whatever happens today the truth is taxes are rising moving forward they might fudge it today but the real truth is out there and plain to see it’s like they think the general population is backward.

[123trev] 22/11/2023 10:21

When you consider the capital loss on a great many UK stocks you can see why a great deal of cash poured into rates of 6%+ with a lot fixed for two years.I would be very surprised to see any major moves here unless a bid was tabled and that’s unlikely.Like I said would have to be a big discount here to make me buy both my sipp and ISA average 4% on cash with virtually no risk.

[123trev] 21/11/2023 11:14

Given the rate I can fix on cash then the dire situation on most fronts that just isn’t going away because it’s well and truly embedded with risks mounting by the day you have to ask are markets well and truly broken! Obviously we no markets are irrational because of the instruments used within it cloud the true picture. At this point I’ve become more disciplined than I have in been in years and I want a very big discount to invest here or anywhere else and if I’m thinking that way then you would imagine other sensible investors are to!

[123trev] 20/11/2023 11:30

Remember doubters we have the highest tax burden since uncle Albert was in the war everything is broken almost beyond repair the cost to fix it all astronomical given the scope of neglect and where does that burden eventually fall! And how does that affect an already broken economy addicted to debt? Well I will leave you to think about that while my spending power still gets me smashed lol.