M&G Equity Share Discussion Threads

[leading] 02/3/2007 16:59

I thought it might be an opportunity to top up today given the recent market turbulence. There were only two trades today, one for 10,000 shares and one for a rather chunky 2,000,000. No prizes for guessing which was mine.

[chrisp007] 09/1/2007 14:40

Nephin,

The real point is that you are getting gearing for nothing. If the investments in the fund do not increase by more than 2%(charges included: source Financial Times) a year then you will start to lose money, however all equity/income unit trusts charge over 1.5% a year. Thus, you will be getting over 4 times gearing for almost nothing. A prudent investment style would be to invest one part meqc and 4 parts cash. This would allow you to get all the rewards of a stock market upturn without the huge risk of having 5 parts in unit trusts.

In option trading such gearing can cost so much more with at max, a 9 months time scale. MEQC, will be woundup in over 4 years time. This means that the market can correct and have chance to recover before meqc is woundup.

M&G High cap is another highly geared stock where the timescale and gearing are both greater(and I own and truly rate), however so is the hurble rate about 3.5.

A final thought is that these hudle rates are estimated on the return of equity in the fund. Therefore, if the corporate bonds were to increase in value due to interest rates falling over the next few years then these hurdle rates are under estimating the funds potential performance.

I have been trading split cap/warrants for over ten years and the potential for return on meqc compared to risk is greater than I have ever seen.

[leading] 13/10/2006 08:52

Nephin,

You are correct that this is a highly geared play and that the underlying companies are likely to be mainly FOOTSIE constituents, as the investment manager sees fit.

This company has a fixed life and will be wound up on 8/3/2011. The figures quoted above are compound. The hurdle rate is the compound return required between now and the wind up date in order to repay your original capital (1.8% when I posted 71 above). Assuming a 10% compound return on the company's investment portfolio, the capital shares will return 40.51% compound on your initial investment, provided they are held to maturity.

Prior to maturity the price will fluctuate with supply & demand as well as the underlying investment performance. Also the share will trade at a discount which should gradually reduce as the maturity date approaches. When you get very close to the maturity date, things can get very volatile e.g. PTTC.

Before you invest in a split cap share you should look at the company's Annual Report and make sure you understand the capital structure. Finally; yes a total loss is possible, probably if the annual return is less than about 1%, I guess.

[nephin] 12/10/2006 23:17

leading:

Excuse my naive ignorance with this type of share but do I assume that if the share price of the above mentioned shares rise by 10% over the next year then the share price of this share will rise by 40.51% - and the opposite scenario as well I assume?

In other words this is a highly geared play on some of the largest companies in the FOOTSIE?

[leading] 09/10/2006 12:23

I did. They are locked away for the long term. Still cheap as you say.

[cityfarmer] 09/10/2006 11:56

Looks like we were right Leading! hope you topped up too? still cheap for those interested....

[leading] 28/9/2006 16:11

I agree.

Four and a half years to run and a whopping discount. Split Cap Analytics site shows a hurdle rate of 1.8% and a net redemption yield of 20.24% assuming 5%pa growth in the value of the underlying holdings, or 40.51% for 10% annual growth. Looks good to me.

[cityfarmer] 27/9/2006 09:45

Added a few more yesterday feel they have been a bit left behind.........

[cityfarmer] 30/1/2006 10:02

Ready for lift off! have been filling my boots may be worth considering at this price................

[soysoy] 17/8/2005 20:11

i sold out today small profit
think the market is going to change

[soysoy] 09/8/2005 10:18

M&G Equity Inv.Trust - Investment Companies Disclosure
•Website •Fundamentals •Share Price



M&G Equity Investment Trust P.L.C

Investment Company's disclosure

M&G Equity Investment Trust P.L.C. announces today that as at 30 June 2005 the
Company's top ten holdings were:

Shell Transport & Trading (Regd.) 4.48%

BP 4.44%

Vodafone Group 3.65%

GlaxoSmithKline 3.63%

HSBC Holdings 3.12%

Barclays 2.29%

Lloyds TSB Group 1.95%

Imperial Tobacco 1.86%

BT Group 1.66%

National Grid Transco 1.56%

[praipus] 08/8/2005 11:37

Any chance of posting a list of underlying holdings?

[soysoy] 06/8/2005 11:13

5 August 2005

M&G Equity Investment Trust P.L.C.

The Board of M&G Equity Investment Trust P.L.C.
announce that the net asset value at 12:00 noon today
was £195.9 million.

Income Shares 4.53p

Capital Shares 42.20p

Zero Dividend Preference Shares 64.25p

Package Units 110.98p

[soysoy] 29/7/2005 17:03

29 July 2005

M&G Equity Investment Trust P.L.C.

The Board of M&G Equity Investment Trust P.L.C.
announce that the net asset value at 12:00 noon today
was £195.2 million.

Income Shares 4.32p

Capital Shares 42.02p

Zero Dividend Preference Shares 64.25p

Package Units 110.59p

[soysoy] 29/7/2005 09:27

28 July 2005

M&G Equity Investment Trust P.L.C.

The Board of M&G Equity Investment Trust P.L.C.
announce that the net asset value at 12:00 noon today
was £194.6 million.

Income Shares 4.31p

Capital Shares 41.68p

Zero Dividend Preference Shares 64.25p

Package Units 110.24p



END

[soysoy] 28/7/2005 09:43

27 July 2005

M&G Equity Investment Trust P.L.C.

Substantial Shareholding

M&G Equity Investment Trust P.L.C. ("M&G EIT") announces that it has today been
informed by Calyon Corporate and Investment Bank that Credit Agricole Cheuvreux
International Ltd, has an interest in 15,825,000 M&G EIT Income Shares
representing 8.9% of the relevant share class.
27 July 2005

M&G Equity Investment Trust P.L.C.

The Board of M&G Equity Investment Trust P.L.C.
announce that the net asset value at 12:00 noon today
was £194.4 million.

Income Shares 4.31p

Capital Shares 41.56p

Zero Dividend Preference Shares 64.25p

Package Units 110.12p

[soysoy] 27/7/2005 09:15

26 July 2005

M&G Equity Investment Trust P.L.C.

The Board of M&G Equity Investment Trust P.L.C.
announce that the net asset value at 12:00 noon today
was £194.1 million.

Income Shares 4.26p

Capital Shares 41.44p

Zero Dividend Preference Shares 64.25p

Package Units 109.95p

[chopsy] 27/7/2005 01:43

41p, very good compared to share price

[soysoy] 15/7/2005 08:59

14 July 2005

M&G Equity Investment Trust P.L.C.

The Board of M&G Equity Investment Trust P.L.C.
announce that the net asset value at 12:00 noon today
was £194.7 million.

Income Shares 4.12p

Capital Shares 41.92p

Zero Dividend Preference Shares 64.25p

Package Units 110.29p

[soysoy] 12/7/2005 10:40

11 July 2005

M&G Equity Investment Trust P.L.C.

The Board of M&G Equity Investment Trust P.L.C.
announce that the net asset value at 12:00 noon today
was £194.9 million.

Income Shares 4.09p

Capital Shares 42.09p

Zero Dividend Preference Shares 64.25p

Package Units 110.43p

[soysoy] 08/7/2005 16:56

July 2005

M&G Equity Investment Trust P.L.C.

The Board of M&G Equity Investment Trust P.L.C.
announce that the net asset value at 12:00 noon today
was £194.4 million.

Income Shares 4.09p

Capital Shares 41.78p

Zero Dividend Preference Shares 64.25p

Package Units 110.12p

[soysoy] 01/7/2005 14:05

Income Shares 3.97p

Capital Shares 41.48p

Zero Dividend Preference Shares 63.83p

Package Units 109.28p

[soysoy] 28/6/2005 17:32

28 June 2005

M&G Equity Investment Trust P.L.C.

The Board of M&G Equity Investment Trust P.L.C.
announce that the net asset value at 12:00 noon today
was £190.0 million.

Income Shares 3.93p

Capital Shares 39.86p

Zero Dividend Preference Shares 63.83p

Package Units 107.62p

[soysoy] 22/6/2005 18:29

M&G Equity Investment Trust P.L.C.

The Board of M&G Equity Investment Trust P.L.C.
announce that the net asset value at 12:00 noon
today was £190.9 million.

Income Shares 3.91p

Capital Shares 40.38p