monabri wrote:Looking at the top 10 investments (48%) , the businesses there have "challenges ". I'd say the new management has taken a punt on recovery shares rather than quality.
Royal Mail plc 7.3
BP p.l.c. 5.4
Anglo American plc 5.3
NatWest Group Plc 4.9
Royal Dutch Shell Plc Class B 4.7
Standard Chartered PLC 4.5
ITV PLC 4.2
Marks and Spencer Group plc 4.1
Aviva plc 4.1
Dixons Carphone PLC 3.5
Total 48.0
In the top 20 holdings ( well , top 22) we find ITV, Pearson, BT, VOD, Easyjet, Centrica, Capita, Kingfisher (the latter being the most shorted company).
https://www.shorttracker.co.uk/company/GB0033195214/Page 20 of the latest AR ( risk register) states
"As at 31 December 2021 the Company had distributable revenue reserves of £11.7 million. Furthermore, income risk is mitigated by the
Company’s ability to distribute realised capital gains if required to meet any revenue shortfall."
I'd be a little uneasy as to whether this risk was adequately thought through and is covered. Are the companies generating recovering free cash flow (oil companies = yes) to support future dividend increases? The trust seems to contain many companies that even the HYPers worry about and avoid!