Scottish Investment Share Discussion Threads

[hindsight] 20/1/2022 09:58

Am I correct in thinking this is a done deal and the present ~4% discount will morph to the JGGI ~2% premium at some point ?. Naturally thats deppendant on JGGI staying at that premium. But other than that what trading, legal, etc cost % will there be ?

[spectoacc] 19/1/2022 16:23

All we need now is for gold/gold miners to take off, and everything Tony Dye - sorry, Alisdair McKinnon - positioned for will come to pass.

I believe the portfolio has until Friday. Shame.

[wskill] 01/1/2022 00:20

I understand it will be a little more ad hoc in comparison to IVI which was a merger with another trust by the same company , this should not mean that dividend reserves
will not benefit SCIN holders but for the benefit of new management.

[winski] 31/12/2021 16:29

I'm sure I read cash will be used to pay down debt, deal with sale of offices, arrange the disposal of the regular savings (SIT I think) side which is separate, and cover any pension liabilities with the remainder being returned to the shareholders in due course (expected towards end of 1st qtr). I assume any cash will be accounted for and go to the new management. I have a reasonable sum here and will wait for the Dividend and transfer to close the NAV, but I do so with trepidation.....I really want to roll the money into my Pershing Square holdings. HNY

[spectoacc] 31/12/2021 07:40

Revenue reserves aren't cash, aren't in addition to the published NAV, and don't exist other than in the accounts.

Would be delighted to be wrong tho :)

[wskill] 30/12/2021 16:44

Looking back to IVI in which I had a decent holding, cash in the revenue account/revenue reserves was paid out as a special dividend as below .I cannot see what will happen to our undistributed cash/revenue reserves they are a tangible asset which belong to SCIN shareholders.



The Directors have declared a special dividend of 8.35p per share and shareholders who are on the Register on 6 April 2021 will be entitled to receive such dividend, subject to the passing of resolutions to be proposed to approve the combination of the Company with Invesco Select Trust plc. The special dividend represents, as closely as is practicable, the sum of the Company’s undistributed net income and its brought forward revenue reserves

[spectoacc] 30/12/2021 13:59

Revenue reserve just an accounting gimmick surely. Doesn't exist as cash. ITs like to obsess over it but since the rules changed and allowed divi payments from capital (as JGGI do), not sure relevant.

[wskill] 30/12/2021 13:22

Just received my glossy 134th annual report reading on page 2 the revenue reserve is 2.7 times so around 66p on past experience this has been paid to shareholders ,When I have more time will check on this .

[wskill] 29/12/2021 14:10

Yes Spec well said I have many such funds royal London global,threadneedle global focus ,rathbone global,t rowe price,trojian global,blue whale ,fundsmith which I have done well with over the last few years they all have some of what SCIN will now buy its making me think along the same lines .
But the 6.5% discount on my SCIN shares belongs to me so will wait.

[spectoacc] 29/12/2021 13:51

Think I can explain the many years of underperformance from SCIN now - 3x 72-page glossy annual reports dropped through the letterbox this morning, despite holding all my remaining SCIN through various nominee a/cs.

On the plus side, some interesting stuff in there.

Particularly liked the gem about the advantage of JGGI "...Focussing purely on the best total return opportunities." Referenced in relation to value/growth, but really "We switched to a new manager who says they're looking to buy shares that will go up".

Still targeting first quarter 2022 for the combination, but first stage is appointing the JGGI managers to manager the Trust around 21st Jan, and that they'll then switch the portfolio out of what we all bought SCIN for, and into the racier JGGI cr*p. So rather than hold on for the merger, that'll be me looking for the exit.

A gracious review from Alasdair McKinnon but personally sorry to lose a value-based, gold-heavy IT. Can argue that if the strategy isn't working now then when will it, but can also argue the next few years may have been perfect. This particular diversification choice has only weeks left.

A reminder, if any were needed, of what SCIN is likely to be holding a month from now:

No golds
No oils
No UK financials
But MSFT, AMZN, Alphabet, Wells Fargo, McDonalds, Mastercard, Analog Devices, P&G.

Not the worst picks - at least no Tesla - but if I wanted the racy US techs that have done so well, I'd buy JGGI.

Still c.6.5% of discount closing to happen.

[spectoacc] 23/11/2021 16:37

NAV closing in on something more reasonable, but would like to see the gold exposure kick it higher well ahead of the merger.

[wskill] 11/11/2021 16:22

Yes that is the worry now hopefully they will inform us of changes they should wait until the vote I think before changing the mix.

[spectoacc] 11/11/2021 16:16

Can it remain in a good place until it disappears......

[winski] 04/11/2021 16:39

Thanks, BT rally today won't do any harm

[spectoacc] 03/11/2021 06:47

Inclined to think we'll head towards par by mid-Jan, to match JGGI. So there's some market risk (but not much, considering SCIN's holdings), and possibly a further boost from demand due to scale - ie back into the FTSE350 will induce some tracker buying.

[winski] 02/11/2021 20:15

Little confused here. assuming the vote goes the way of the boards recommendations, it looks as though the takeover / merger will happen mid Jan 2022. Does anyone know if that is likely to be after the final div due mid Jan? if so, what are the chances of a special div?.
The discount has narrowed nicely but still away to go. Held SCIN for a while as a sort of portfolio hedge, I'm think I'm unlikely to hold till merger but still trying to workout the pluses and minuses. Welcome comments from anyone with a view

[spectoacc] 26/10/2021 14:46

Market (& NAV) on the rise, deserves to be nearer to par like JGGI.

[wskill] 20/10/2021 14:45

That would be a decent result SpectoAcc looking at the portfolio JGGI is more or less the same as other funds in the global scene not something I want more of , will wait for the discount to narrow a bit then decide which one to sell .

[spectoacc] 20/10/2021 14:19

Maybe we've got it all wrong, maybe JGGI is going to switch to golds & oils :)

[wskill] 20/10/2021 11:01

Thanks Vince I was hoping for similar here like IVI when it was taken out as well.

[vinceelliott] 20/10/2021 10:37

Below is an extract from the PLI RNS on special dividend at 'wind up', commensurate with the restructuring envisaged fro SCIN.

Seems odd. It would suggest the the transferring company is bringing zero distributable reserves to the 'new' IT. No doubt this will be taken care of in the calculation of FAV etc.


HEADLINE: Special Dividend

The Directors are pleased to declare a Special Dividend of 13p per Ordinary Share, which will be paid on 13 November 2020 to Ordinary Shareholders on the register on 16 October 2020. The shares will be marked ex-dividend on 15 October 2020.

This dividend distributes to shareholders substantially all of the undistributed current year revenue and the Company’s revenue reserve. This is in line with the Board’s intentions announced on 29 July 2020 in connection with the proposed combination of the assets of the Company with Murray Income Trust PLC by means of a section 110 scheme of reconstruction under the Insolvency Act 1986.

[spectoacc] 20/10/2021 09:32

Exactly. Board slow to act when it was the wrong strategy; now there's genuinely a reason when it might work, and they're running off to the US big techs. Makes no sense to me.

But like you, I'll take the discount narrowing :)

[wskill] 20/10/2021 09:25

Not only the gold miners SpectoAcc they have a similar amount of cash in Total, Exxon, RDSB and BP which I would think will do rather well in the next year part of me wishes that SCIN stayed as an independent just to swim against the tide I have far too many similar type of funds in my portfolio at least holding Scottish was a hedge against them.

[wskill] 20/10/2021 08:57

Increased my holding this morning on the discount narrowing did not see anything about the revenue reserve though in the recent past I have seen this paid out to holders ? or would that be a tad greedy. I will have to contend myself with the 10% discount then.

[spectoacc] 20/10/2021 08:05

Well that worked quicker than I expected.

But doubtful shareholders in a co with a Top 3 equity holdings that are gold co's, will want to merge/be managed by an IT with a Top 3 of Microsoft, Amazon, Alphabet?

On the plus side - discount should close. But having failed to act for the past few years, surely the inflation resurgence was the Board's opportunity to give it 12 months.