Rsa Ins. 7te%pf Discussion Threads

[badtime] 18/11/2020 14:03

Good selection there Sky ..but then I would say that as I hold all bar one :)

[bluemango] 18/11/2020 10:28

Thank you Skyship, appreciated. Will look into those for other funds if they come available, meanwhile happy sticking here. Cheers

[skyship] 18/11/2020 10:20

Bluemango

There are loads of high-yielding opportunities available without taking equity risk; though you have to be prepared to go off-piste slightly.

Current Best Buys:

# RECI @ 130p. NAV 147p. Divi 12p/annum. Yld 9.2%
# VTA @ 4.90Eur. NAV 6.07Eur. Divi 44c(Min.). Yld 9.0%
# RGL1 @ £94. Coupon 4.5%. Redeem at par 08/24. GRY 6.2%
# NBPS @ 110p. Redeems 10/24 @ 130.63p. GRY 4.45%
# INLZ @ 165p inc SD. Redeems 04/24 @ 201.40p. GRY 6.05%

[badtime] 18/11/2020 10:17

No rush to exit ...things might still happen...and I've only a modest holding in prefs elsewhere ...so comfortable holding

[bluemango] 18/11/2020 09:00

My old Dad had several investment 'sayings' - one was 'no regrets, no recriminations'

It also took me three decades (!) to realise his investment style was more sound than mine. For the last few years I've adopted his ways. Better late than never ..

[cwa1] 18/11/2020 08:58

As you may know, I had a very large holding in PHNX that I halved to mean it was reduced to just a large holding for me...and I've regretted it ever since ;-)

[bluemango] 18/11/2020 08:52

Many thanks, CWA1. I really didn't want the task of trying to find as good a yield elsewhere ... Already overweight in PHNX which is one of the few comparable .. Will sit tight.

[cwa1] 18/11/2020 08:49

The default position is that they will continue just as they are now, only with the new owner counterparties and their(IMHO) even more secure profile. Certainly nothing to worry about and there MAY even be a later tidying up exercise IMO

[bluemango] 18/11/2020 08:44

Morning CWA1. This is my first time in this situation when holding preference shares, so would you mind spelling out the likely scenario please? Will these preference shares be converted to shares in Intact, at current market value? Or into cash? What's your best guess please?

Edit: Seems like from your post just now, you expect the current yield to continue?

[cwa1] 18/11/2020 08:44

No probs Sky, I was vaguely wondering if there might be a rush for the exits this morning and a chance to pick up some more at ridiculously good prices but, alas, so far it has just proved to be a pipe dream ;-)

Still a very solid investment IMHO. After all where can you get a tax free yield(ISA/pension/etc) of 6%, that is rolled up cumulatively if not paid, with counterparties as solid as these? Though I may well be considered to be somewhat biased :-)

PS: AND it may well just be something they are putting on the backburner until the deal goes through to save on extra complications. They may well re-visit soon after the deal has been completed to "tidy" it up

[skyship] 18/11/2020 08:26

Had only a very small holding bought @ 126p, so sold those first thing this morning. GLA.

Incidentally, thanks CWA1 for your post this morning.

[skyship] 18/11/2020 07:52

Disappointing...

[cwa1] 18/11/2020 07:38

RSA have announced the takeover in now "official" this morning, They have this to say re the prefs...

"14. RSA Preference Shares
RSA has in issue 125,000,000 RSA Preference Shares which are listed on the Official List of the London Stock Exchange. With the consent of the Panel, no separate offer will be made for the RSA Preference Shares."

So no premium offer for them(as yet) but still a highly satisfactory, cumulative, yield with possibly even greater security than before. Happy enough if that turns out to be the outcome.

[badtime] 12/11/2020 16:51

Bit of selling this afternoon..might settle a bit ..then just take the income while we wait and see what happens

[2akop] 06/11/2020 11:38

Interesting opportunity perhaps - the RSAB takeover looks like a carve up and they will probably want to take out the prefs. The terms of the prefs look like they grant holders a blocking vote to cancellation and include terms of 2x (now non-existent war loan 3.5%). Can’t see them trying an Aviva, as they will need FCA on board. Potentially a decent capital gain on takeout, perhaps?

[cwa1] 30/7/2020 07:36

For the record, announced by RSAB today:-

2nd preference dividend:
Announcement date 30 July 2020
Ex-dividend date 13 August 2020
Record date 14 August 2020
Dividend payment date 1 October 2020

[2wild] 23/3/2020 20:46

Looking interesting again. Picked up a few at 91p today, giving an 8.1% yield. There are 125 million pref shares in issue compared to RSA market cap which is still over £3.6B.

[skyship] 03/8/2019 10:27

free stock charts from uk.advfn.com

[bluemango] 09/3/2018 10:15

For those not yet caught up with developments, link describes what Aviva are attempting on their preference shares:

[cwa1] 11/8/2016 08:16

Payday 3/10/16

[cathian] 28/10/2015 09:21

Deltag - I've just seen your enquiry of 11th September and the first thing to point out is that the RSA 7 3/8% Preference Shares are described as Irredeemable so I guess, and it's only a guess, it would require the Class Shareholders to approve any alteration to their terms. But what the position would be on a takeover I really don't know although I imagine there must be something about the rights of the Preference Shares in the Company's Articles.

[deltaj] 11/9/2015 22:31

If RSA is taken over what happens to my preference shares? Are they compulsorily purchased and at what price? The price has not moved much despite the takeover rumors.

[cwa1] 13/8/2014 08:05

Just in case anyone was wondering, yes, today is XD day. Payday 1/10.