St. James's Place Share Discussion Threads

[dexdringle] 26/10/2023 20:39

Well, this is now down exactly 50% since April when the shares were £12.40 each.

Surely this is way overdone ? The business profitability hasn't changed dramatically, the FUM hasn't fallen and things aren't fundamentally terribly different.

20% maybe. But 50% ?

[blueball] 25/10/2023 13:13

500p incoming.

[tim 3] 25/10/2023 10:29

I agree this type of investment is not a good fit for funds.

[dexdringle] 25/10/2023 10:27

I can't understand why these companies continue to run open ended property funds that actually buy physical property as it is well known that they are a terrible idea.

To give their clients a property investment option, all they need to do is invest in listed property companies (Taylor Wimpey, British Land etc) and then there are no liquidity problems as the underlying assets can be sold at any time. This also ensures that the unit value is clear at any point rather than based on some woolley valuations of actual properties...

[tim 3] 25/10/2023 10:05

Fair point but in that case it should be made absolutely clear to clients when they invest that there may be times when their money is locked in I doubt that happens certainly was not for us when we owned some.This is not the first time they have gated them either.

[dexdringle] 25/10/2023 09:48

Tim3, the problem is that where the fund owns physical properties, they can't pay back investors money because they don't have the liquidity. Unless they post a few bricks to the investor instead.

And if they flog off the better properties to pay out theose wanting to cash out now then the remaining unit holders are left owning the dregs. The only was to do it is sell all properties so the fund ends up 100% cash then distribute that to everyone equally. Which takes time. Hence the suspension....

[porsche1945] 25/10/2023 09:05

450 target for these, charts sooooo bad, there is literally no support, their business model has broken completely. Builders and financials are going to get decimated over next few years.

[tim 3] 24/10/2023 22:34

To me you should never stop investors taking their money out if they want too if the price is low then that's their choice but a least they have a choice!

[pugugly] 24/10/2023 22:23

Yet another failure - Investors locked it - However was very predictable -
Did the "Advisors" warn any of their clients as soon as interest rates started increasing - or even earlier with the start of WFH - resulting in massive office under-occupation?

St James's Place suspends £820m property fund

[tenapen] 24/10/2023 17:01

Not just find managers.

:::Groan:::

[sandeep67] 24/10/2023 15:12

savings rates 5.8% 5 years beats the stock market losses of plus 20% over last couple of years. Fund managers have lost a lot of money over last 18 months. War, Unrest, cost of living. You can't even throw money in Gilts!!!

[dexdringle] 24/10/2023 12:57

Back to SJP. The fall in the share price is getting silly now. Aside from the insane £150 million IT costing for the system changes, there is no way that the charge changes announced will reduce net profits by more than 10%. They will actually improve cashflow.

There is something else going on here...

[dexdringle] 24/10/2023 12:55

Yes, any reduction in interest rates should have a disproportionate positive effect on the bond values of longer dated bonds. You have to ask about who bought those at £200 a pop though and how they are feeling now about that decision...

[tim 3] 24/10/2023 12:22

Good question.

I believe that interest rates will drop in time and interest rate moves have a much bigger impact on the price of long dated gilts and if the capital does rise the gain is capital gains free.

I am also unlikely to need the capital any time soon so if rates drop I have 5% locked in for longer.

[dexdringle] 24/10/2023 11:47

tim3, what was it that made you go for the long duration rather than a shorter duration (say 5 years) with a similar yield ?

[pander45] 24/10/2023 11:22

Edit: low 500s!

[pander45] 24/10/2023 11:21

This is going sub 600, it may even drift into the 500s.

[tim 3] 24/10/2023 10:49

I paid .87 (was over £2 a couple of years back)

If interest rates went up by that amount then its likely the price would fall drastically.

I looked back at yield in the 80's and if we got to that sort of situation then it would probably halve in value or even more.

But I would be very surprised to see interest rates over 10% for a prolonged period.

Its a longer term investment so happy to ride out the dips and get the yield because I think the likely outcome is we will see rates stabilise and start to drop a little in the next few years.

[dexdringle] 24/10/2023 10:17

tim3

How much did you have to pay for your 2055 gilt ?

What would happen to the value if interest rates went up 3% from here ?

[dexdringle] 24/10/2023 10:08

Was reading yesterday about the 2121 (one hundred year !) Austrian Treasury stock which pays 0.85%. Two years ago it was trading at €120. It is now trading at about €40.

Why would anyone buy a bond with a massive duration and tiny yield ? It was always going to be decimated when interest rates rose. Crazy !!

[tim 3] 23/10/2023 20:51

Thank you.

[quepassa] 23/10/2023 20:10

Sounds like a very astute investment.

Well done and good luck.

[tim 3] 23/10/2023 17:56

QP

Purchased the TR4Q ((2055) gilt today.

Already have exposure to the stock market but wanted a long term fixed interest part of my portfolio.

It yields just under 5%.I believe in the coming years this will be a decent return.

I accept this is a more speculative buy and I could have bought a shorter date gilt with similar yield and get my money back on expiry but I wanted something that reflected my views that interest rates will eventually drop and I believe when they do this would have a more positive effect on the longer term gilts capital value.Of course this can work in reverse too but I accept that risk.Am a 20% tax payer.

All imo DYOR.

Thanks for your posts.

Sorry to be off thread

[quepassa] 23/10/2023 17:03

Interesting article on SJP in 21/10 Weekend FT, Money supplement page 16 by journalist, Moira O'Neill.