Schroder British Opportu... Share Discussion Threads

[boozey] 02/12/2020 16:48

Well not a good start! Two days of strongly rising markets since launch and we have gone backwards in price and NAV!

[cc2014] 02/12/2020 16:41

Wtf are these councils doing. The target return on this is about 10% p.a. which means it's risky. This is hardly a good place to put people's pension pots.

[jonwig] 02/12/2020 16:19

Spec - yes, the pension fund. And West Yorks took some too! (We're not as daft as Kent!)

If the IC's morning email today is a guide, SBOT should be poised:

The UK is a ‘buy’ is fast becoming the consensus view. As per Goldman Sachs yesterday, chiming views expressed here in recent weeks, UK equities are due to catch up. Analysts at the vampire squid expect a free trade deal with the EU and “substantial room” for a strong economic rebound in 2021, as activity remains depressed and the UK is well positioned for vaccine distribution. Both should support GBP and UK domestic stocks, whilst they do not see a move up in sterling on a Brexit breakthrough as a significant barrier to FTSE 100 performance. Back to the strong pound = strong UK equities correlation of old. Meanwhile, the FTSE 100 has an expected 2021 dividend yield of 4 per cent, making it the most attractive among developed market stock indices.

UK equities have trailed peers of late and the investment bank expects a further bounce relative to European shares assuming a trade agreement. And whilst UK domestic stocks have re-rated, they still trade at about a 10-15 per cent P/E discount to the broad European market. Against the US, UK equities trade at a 35 per cent discount based on a 2-year earnings outlook. Assuming a strong, vaccine-led recovery next year, they reckon this offers good value. Basically, the UK’s cyclical and value bias (a third of the FTSE 100 with virtually no tech) makes it well placed to benefit from a global recovery in 2021.
I'd be less sanguine about an imminent EU deal, though.

[spectoacc] 02/12/2020 15:52

Ha ha fair play - and they're up on TEEC - but seems chunky positions to take for a Council. Is it even their pension fund?

(Also trying to reserve judgement on SBO until they start investing - difficult, when they've no track record apart from general failure at SUPP, share price lower than when they started even with a healthcare pandemic).

[jonwig] 02/12/2020 15:24

Spec - ERoY took a big % of an earlier IPO I invested in (15%, TEEC) so I'll not endorse that, just yet.

[spectoacc] 02/12/2020 15:02

Got to laugh - East Riding of Yorkshire Council have taken 20% of SBO in the IPO, ie £15m.

Do these councils not learn? Kent haven't even had all their money back yet (what's left of it).

[boozey] 01/12/2020 10:20

Interactive Investor hasn't even registered the ticker yet! Talk about slow on the uptake!

[chucko1] 01/12/2020 09:51

It's the opportunity of a generation, don't you know? 98p, 103p - who's counting? Just get in while you can.

[jonwig] 01/12/2020 09:41

NAV of 98p!

[spectoacc] 01/12/2020 09:40

NAV more like 98p :)

It'll be under stabilisation for a while.

[cc2014] 01/12/2020 09:37

An hour and a half in and the price is 100-103.

Why pay 102p for something with a NAV of 100p which you could have bought for 100p a few days ago?

[chuckol] 30/11/2020 09:46

Thanks John. A reet dodgy pair o' trolls straight from Ripper country jonwig and specto, I tell thee!

[johnwig] 30/11/2020 08:49

We need to have some balance in our lives now that the Trump era is, hopefully, dead. This trust is an interesting proposition and deserves some non-troll attention. jonwig and poor old speccy have BOTH rushed to establish threads which they can CONTROL.

You will have fair treatment here if you make normal posts.

[jonwig] 28/11/2020 14:34

Result of issue:



Dealings begin 1 Dec 2020.

[jonwig] 28/11/2020 14:33

.



75,000,000 ordinary shares issued 27 Nov 2020.
Initial NAV 98p.

Holdings:
Schroders ...................... 21,151,996 28.2%
East Riding Yorks .............. 15,000,000 20.0%

[spectoacc] 27/11/2020 07:32

Attempted to raise £250m, got £75m, will have £73.5m after costs. 100p issue price.

"The Company believes that there is a once in a generation opportunity to invest equity capital into high quality, high growth UK Companies in the c. £50 million to £2 billion equity value range with sustainable business models at attractive valuations."

Many would suggest that was about a month ago, before the vaccine news.


"Rory Bateman, Head of Equities at Schroders, said: "Today we have a fantastic opportunity to invest in the future of British businesses, both public and private, while supporting UK employment through the pandemic and beyond. We will start to invest the IPO proceeds in short order and as we deliver on our investment strategy we look forward to growing the fund further in the near future."


"Tim Creed, Head of UK and European Private Equity at Schroders, said: "We believe there is an increased need for fresh equity investment into UK companies and through SBO we now have the structure to take advantage of this considerable opportunity. Our investment strategy focuses on high quality growth companies that have benefitted from Covid and require funding to maximise their growth potential and those that have been impacted and require equity to return to their previous growth trajectories. We have a number of compelling investment opportunities in our pipeline and will utilise Schroders' rigorous approach to ESG integration in our investment decisions."


Note Tim Creed's poor performance so far with SUPP.