End of year 8 reviewsAs far as I am aware, neither pyad nor anyone else produced a Year 8 end-of-year review for HYP1. This was due to pyad leaving TMF for somewhat over a year from March 2008.
On the TMF board, there was a
review by kool4kats whose subject indicates that it is a HYP1 review, but it is actually a review of what was later called CHYP1. CHYP1 was identical to HYP1 up to and including Year 6, and only deviated very slightly from HYP1 in Year 7 (due to failing to find pyad's post about how he'd dealt with Anglo American's demerger of Mondi, as a result of which the small reinvestment of the Mondi sales proceeds was done differently to HYP1). In Year 8, however, TMF board users chose CHYP1 replacements for Resolution, Scottish & Newcastle and Alliance & Leicester that completely differed from those that it later emerged pyad had chosen for HYP1, so the deviations became rather more significant.
CHYP1 and HYP1 did have a fair amount in common, so kool4kats's review does give a very rough idea of HYP1's state at the end of Year 8 (this becomes increasingly less true in later years, mainly due to one of HYP1's replacements having been the hugely successful Persimmon and CHYP1's replacements not having included anything similar).
Reconstructing HYP1's holdings at the end of Year 8This is mainly based on pyad's posts in
January 2007 and
December 2009, plus knowledge of which holdings were and were not affected by corporate actions in each of Year 7 (after the January 2007 post), Year 8, Year 9, and the small part of Year 10 before the December 2009 post. The following table summarises that information, with 'x's indicating years when no corporate action affected each company:
For all the holdings except DSG International, Lloyds and United Utilities, there are either no years when the holding size was affected by corporate actions and no overall change to the holding size, or just one year in which the holding size was affected by corporate actions, in which case the change in that one year must be equal to the overall change in the holding size.
For DSG International, Year 7 saw the holding created as a takeover replacement for Alliance Boots, then Year 9 increased the size of the holding as a result of reinvesting a lapsed-rights payment. A PM exchange with pyad proved helpful in sorting out the split of the increases between them - he remembered that a problem had been found about the DSGI holding size but not that problem. Once he mentioned that, I recalled having pointed out a holding size problem for one of HYP1's holdings (though not which holding it was), had a look to see whether it was in my archived TMF material, and found it in the
TMF thread headed by pyad's Year 14 review. It was indeed about the DSGI holding and it told me that the holding's size when purchased as the Alliance Boots replacement was 5841 shares, implying that 2167 shares were added by reinvesting the lapsed-rights payment.
Lloyds was involved in five corporate actions in the years concerned:
1) In Year 8, as pyad stated in
viewtopic.php?p=357768#p357768 above, a United Utilities return of capital was reinvested in Lloyds.
2) Later in Year 8, Lloyds did an open offer. This could only have had any effect on the holding size if HYP1 had subscribed to it - which of course it didn't.
3) In Year 9, Lloyds did a 1-for-40 bonus issue, which pyad has told me (in the same PM exchange) increased it by 29 shares to 1196 shares.
4) Later in Year 9, Lloyds did a compensatory open offer, which is basically like a rights issue except that you cannot sell the 'rights' (which are known as entitlements rather than rights) - you can only subscribe to them or let them lapse.
5) Early in Year 10, Lloyds did a rights issue, which pyad has told me (again in the same PM exchange) he let lapse and reinvested the lapsed-rights payment in United Utilities.
When combined with the December 2009 holding size of 1196 shares, that makes it clear that only numbers 1 and 3 in that list actually changed the Lloyds holding size, and since number 3 increased the holding size by 29 shares, number 1 must have increased it by the remaining 465 shares.
Also, numbers 1 and 5 are the two corporate actions that affected the United Utilities holding size. Number 1 consolidated the shares 17-for-22, reducing the holding of 807 shares to 623 shares, a fall of 184 shares, and pyad has told me in the same PM exchange that number 5 added 56 shares. That's a net drop of 128 shares, which is consistent with the starting and ending share counts.
So we can complete the table of yearly changes as follows:
I had a bit of trouble reconciling the share counts that gave with the £5,040 income pyad has reported for Year 8 - I was getting a figure of £5,178 - but eventually I realised that the sale of Alliance & Leicester before it was taken over could have caused it to miss a dividend of exactly the right amount. So here are...
HYP1 Year 8 portfolio details(1) Start-of-year figure --> end-of-year figure if the number changed during the year.
(2) Included according to when they went ex-dividend, provided HYP1 owned any shares at the time. Normally, HYP1 owned the end-of-year number of shares at the time; in cases where it owned the start-of-year number of shares at the time, the dividend is asterisked.
(3) Closing price on 12 November 2008, or "---" for taken-over shares that were no longer available by then. The data source I've used is the legacy version of ADVFN's "Data Downloads" facility (available via its "Sitemap" menu). As a sanity check against errors in ADVFN's data, I've also confirmed them where possible (it isn't for Pearson and Persimmon) against the share prices in kool4kat's
end-of-year review for CHYP1.
(4) Alliance & Leicester also had an 18p dividend that went ex-dividend on 3 September 2008, but before then pyad presumably made his decision to sell rather than having it taken over for Banco Santander shares.
Year 8 corporate actionsA brief summary of these is in
pyad's post above.
April/May 2008: Resolution and Scottish & Newcastle taken over, with combined proceeds split 50:50 between Pearson and Persimmon. The above reconstruction of HYP1's share counts between January 2007 to December 2009 says that the Resolution holding when taken over was 539 shares, the Scottish & Newcastle holding when taken over was 1010 shares, and that the reinvestment resulted in holdings of 891 Pearson shares and 1057 Persimmon shares. The scheme of arrangement links below say that the takeovers were at prices of 720p and 800p respectively, which makes the takeover proceeds £3,881 and £8,080 respectively (that matches pyad's total of £11,961 - which increases my confidence that neither offer was increased). Dividing the numbers of shares in the two replacement holdings into £11,961/2 gives purchase prices of 565.8p for the Persimmon shares and 671.2p for the Pearson shares, in both cases inclusive of costs.
Investegate links:
Resolution scheme of arrangement,
Resolution scheme comes into effect,
Scottish & Newcastle scheme of arrangement,
Scottish & Newcastle scheme comes into effectJuly 2008: United Utilities return of capital. The returned capital was not reinvested in the same holding, as had been pyad's normal practice up to then, but in topping up the Lloyds holding. I suspect this was due to United Utilities having announced a revised dividend policy that included an intention to cut, plus Lloyds having a extraordinarily high yield at the time but the associated risks not having been fully apparent. Anyway, the 17-for-22 share consolidation involved in the return of capital reduced the United Utilities holding by 184 shares, from 807 shares to 623 shares, and the returned capital was 170p per original share. That came to £1,372, and a fractional entitlement payment entirely plausibly raised it to
pyad's figure of £1,376. The resulting purchase bought 465 Lloyds shares at a price of 295.9p, inclusive of costs.
Investegate links:
interim results containing announcement of revised dividend policy,
scheme of arrangement,
scheme comes into effectJuly-October 2008: Banco Santander takeover of Alliance & Leicester. On 14 July 2008, this takeover was announced, with Alliance & Leicester shareholders being given one Banco Santander share for every three Alliance & Leicester shares, fractional entitlement payments for any odd shares left over, and also being entitled to receive an as-yet-undeclared 18p interim dividend. This takeover came into effect on 10 October 2008, Alliance & Leicester having by then duly declared and paid the interim dividend. At some point between those two dates, pyad decided to sell HYP1's 768 Alliance & Leicester shares,
receiving £2,211 for them (287.9p per share, net of costs). He used that sum to top up HYP1's RDSB holding by 144 shares, buying them at a share price of about 1535.4p, inclusive of costs. The date on which these trades were done is presumably before 3 September 2008, the ex-dividend date for the interim dividend, since the extra £138 that dividend would have been would have made HYP1's Year 8 dividend income appreciably more than the £5,040 he has since told us that it was.
Investegate links:
Scheme of arrangement,
interim results;
scheme comes into effect