Schroders PLC (SDR)

[BullDog]

I think when the dust settles the yield will most likely be a good bit lower than 5% but we'll see.

I have no reason to sell Schroders as the price is not demanding anyway and what has happened today is simply a transfer of some value from the voting shares to the non voting shares, to my benefit and all those who have been holding the non voting shares.

SDRC are one of a now dwindling set of single-share income-stocks that I still own, and as welcome as yesterdays price-rise was, it's not likely to have dropped the underlying yield to a level low enough to where I would normally look to rotate the capital into other income-opportunities, as is often the case with situations I've had with other single-share income-holdings that have had price-rising (yield lowering...) bid situations etc..

I do suspect however, that the processes initiated by Schroders yesterday have brought such a parting of the ways closer, and I think there may be a few more twists in the tale yet, following this move...

Cheers,

Itsallaguess

FWIW, I took the opportunity to split the proceeds of selling SDRC into topping up holdings in LGEN and MNG. Both have very handsome and seemingly fairly good quality yields. I still have exposure to the financial services sector but with a higher prospective income stream and one less share to think about.

Such a move was imho, a no brainer for any SDRC income investor. Bag in five odd years worth of Divis, reinvest the proceeds in other better yielders, no sweat. Very large increase in portfolio income at no costs, even taking trading costs into account. I was very surprised that so many did not seem to follow you.

Plodder

You're too kind. I just don't get emotionally attached to a share and look for opportunities as they arise. I often miss good opportunities with the benefit of hindsight. However, with this one, yes, I believe it was a very decent opportunity all things considered.

[Itsallaguess]

FWIW, I took the opportunity to split the proceeds of selling SDRC into topping up holdings in LGEN and MNG. Both have very handsome and seemingly fairly good quality yields. I still have exposure to the financial services sector but with a higher prospective income stream and one less share to think about.

Such a move was imho, a no brainer for any SDRC income investor.

Bag in five odd years worth of Divis, reinvest the proceeds in other better yielders, no sweat. Very large increase in portfolio income at no costs, even taking trading costs into account.

I was very surprised that so many did not seem to follow you.

It's something I've done on many occasions in the past, for the very reasons you quite rightly point out, but I'm a highly inactive investor on the whole, and tend to have my 'operational envelopes' purposely bracketed quite wide to firmly keep me in that area of 'blissful inactivity', and where SDRC have seen a share price rise that's perhaps only subsequently dropped their yield into the 4.x% territory, then that's still well outside any envelope which would provide any particularly strong impetus to act for me personally...

Coupled with that, it feels like the steps taken by the company yesterday are perhaps an indicator of other future benefits yet to be played out, and so taking that broader situation into account, I'm happy to take a watching brief at this stage, with the caveat that there's still potential for taking advantage of yesterdays price rise at some future point anyway...

I do agree though, that it's difficult to give up these types of 'bird in the hand' opportunities when they're presented to us.

Cheers,

Itsallaguess

[Dod101]

I think when the dust settles the yield will most likely be a good bit lower than 5% but we'll see.

I have no reason to sell Schroders as the price is not demanding anyway and what has happened today is simply a transfer of some value from the voting shares to the non voting shares, to my benefit and all those who have been holding the non voting shares.

SDRC are one of a now dwindling set of single-share income-stocks that I still own, and as welcome as yesterdays price-rise was, it's not likely to have dropped the underlying yield to a level low enough to where I would normally look to rotate the capital into other income-opportunities, as is often the case with situations I've had with other single-share income-holdings that have had price-rising (yield lowering...) bid situations etc..

I do suspect however, that the processes initiated by Schroders yesterday have brought such a parting of the ways closer, and I think there may be a few more twists in the tale yet, following this move...

Cheers,

Itsallaguess

FWIW, I took the opportunity to split the proceeds of selling SDRC into topping up holdings in LGEN and MNG. Both have very handsome and seemingly fairly good quality yields. I still have exposure to the financial services sector but with a higher prospective income stream and one less share to think about.

Such a move was imho, a no brainer for any SDRC income investor. Bag in five odd years worth of Divis, reinvest the proceeds in other better yielders, no sweat. Very large increase in portfolio income at no costs, even taking trading costs into account. I was very surprised that so many did not seem to follow you.

Plodder

There is not necessarily a 'very large' increase in portfolio income if you work through the figures, but of course everyone must do what seems best for them and their circumstances. Schroders' share price had drifted down in the last few months and funnily enough the non voting share price is more or less back to its historical level so I think there may be some potential in the share price now that the shares will become more liquid and possibly more attractive for investors. Certainly I see no rush to do anything at the moment and I will at least wait until I see how things work out.

We will no doubt be accused of being off topic but I am not sure I see where this sort of discussion ought to take place.

Dod

[Dod101]

Just to complete my argument for doing nothing, I have just had a chance to look at the share price over recent months. During 2021, the share price was mostly sitting at around £23/25 and it is only in the last few months that it drifted downwards. Unless an investor thinks the end of the Schroder world is nigh why on earth would he sell now when he could have done so for at least the same amount a few months ago? It is not as if the £24 or so which Bulldog got yesterday is either Sky high nor unlikely to be maintained so I just do not see the need for suddenly deciding to sell.

It is true that the yield will probably drop but not to much lower than its historic yield anyway. That is why yesterday I thought selling was so very short term. I see it anything but a no brainer to have sold whether an income investor or not.

Dod

[BullDog]

Just to complete my argument for doing nothing, I have just had a chance to look at the share price over recent months. During 2021, the share price was mostly sitting at around £23/25 and it is only in the last few months that it drifted downwards. Unless an investor thinks the end of the Schroder world is nigh why on earth would he sell now when he could have done so for at least the same amount a few months ago? It is not as if the £24 or so which Bulldog got yesterday is either Sky high nor unlikely to be maintained so I just do not see the need for suddenly deciding to sell.

It is true that the yield will probably drop but not to much lower than its historic yield anyway. That is why yesterday I thought selling was so very short term. I see it anything but a no brainer to have sold whether an income investor or not.

Dod

How about - Because I had only held SDRC a few weeks? Not looking for peer approval or trying to justify what I do to anybody here, mind. Buying at around £18.00 and selling a few weeks later at around £24.50 looks a pretty good deal to me. In the process, buying into significantly higher decent quality dividend yields in the same market sector with stocks that aren't going to be diluted anytime soon (LGEN and MNG).

[Dod101]

Just to complete my argument for doing nothing, I have just had a chance to look at the share price over recent months. During 2021, the share price was mostly sitting at around £23/25 and it is only in the last few months that it drifted downwards. Unless an investor thinks the end of the Schroder world is nigh why on earth would he sell now when he could have done so for at least the same amount a few months ago? It is not as if the £24 or so which Bulldog got yesterday is either Sky high nor unlikely to be maintained so I just do not see the need for suddenly deciding to sell.

It is true that the yield will probably drop but not to much lower than its historic yield anyway. That is why yesterday I thought selling was so very short term. I see it anything but a no brainer to have sold whether an income investor or not.

Dod

How about - Because I had only held SDRC a few weeks? Not looking for peer approval or trying to justify what I do to anybody here, mind. Buying at around £18.00 and selling a few weeks later at around £24.50 looks a pretty good deal to me. In the process, buying into significantly higher decent quality dividend yields in the same market sector with stocks that aren't going to be diluted anytime soon (LGEN and MNG).

Well that sounds like a good move, but of course the Schroder shares are not going to be diluted very much either. I hold L & G and their yield is good but they have not done much on the capital front for a long while. maybe your good fortune will favour them as well. Seeking peer approval would be a waste of energy here but these are discussion Boards.

Dod

[moorfield]

What Bulldog has done there is essentially little different to what TJH does (albeit more methodically and less frequently perhaps) - ratcheted up overall income. His £18 originally bought 122p of income and by my reckoning has now bought about 192p of income (without the plane tickets I assume).

[KnightOfSpring]

Just to complete my argument for doing nothing, I have just had a chance to look at the share price over recent months. During 2021, the share price was mostly sitting at around £23/25 and it is only in the last few months that it drifted downwards. Unless an investor thinks the end of the Schroder world is nigh why on earth would he sell now when he could have done so for at least the same amount a few months ago? It is not as if the £24 or so which Bulldog got yesterday is either Sky high nor unlikely to be maintained so I just do not see the need for suddenly deciding to sell.

It is true that the yield will probably drop but not to much lower than its historic yield anyway. That is why yesterday I thought selling was so very short term. I see it anything but a no brainer to have sold whether an income investor or not.

Dod

Would you feel the same way about not selling some if the rise had taken SDRC to over 11% of your portfolio and the high yield, boosted by the 38% discount to SDR, was getting considerably reduced? I have sold down to 6% and still intend to go down to 4-5% (still a vote of confidence in SDR as this would equate to a 20-25 company portfolio at these weightings). At a guess I had maybe 6% of my portfolio in SDRC when it was last at these prices Nov/Dec 2021. I had added around 3.5% of my portfolio weighting to SDRC since mid Feb 2022 and was always willing to sell this if the price was right, or continue holding if it wasn't. I don't particularly like how concentrated my portfolio had become, but this was very much a function of what I saw as attractive prices in companies that seemed relatively safe and good (two factors often related). In the past I had done nothing when I had my desired weightings, but thought the shares had become particularly attractively priced.

[BullDog]

What Bulldog has done there is essentially little different to what TJH does (albeit more methodically and less frequently perhaps) - ratcheted up overall income. His £18 originally bought 122p of income and by my reckoning has now bought about 192p of income (without the plane tickets I assume).

Indeed, though it would be nice if I had even 50% of TJH discipline and patience. I don't, but I manage to muddle through.

[Dod101]

Just to complete my argument for doing nothing, I have just had a chance to look at the share price over recent months. During 2021, the share price was mostly sitting at around £23/25 and it is only in the last few months that it drifted downwards. Unless an investor thinks the end of the Schroder world is nigh why on earth would he sell now when he could have done so for at least the same amount a few months ago? It is not as if the £24 or so which Bulldog got yesterday is either Sky high nor unlikely to be maintained so I just do not see the need for suddenly deciding to sell.

It is true that the yield will probably drop but not to much lower than its historic yield anyway. That is why yesterday I thought selling was so very short term. I see it anything but a no brainer to have sold whether an income investor or not.

Dod

Would you feel the same way about not selling some if the rise had taken SDRC to over 11% of your portfolio and the high yield, boosted by the 38% discount to SDR, was getting considerably reduced? I have sold down to 6% and still intend to go down to 4-5% (still a vote of confidence in SDR as this would equate to a 20-25 company portfolio at these weightings). At a guess I had maybe 6% of my portfolio in SDRC when it was last at these prices Nov/Dec 2021. I had added around 3.5% of my portfolio weighting to SDRC since mid Feb 2022 and was always willing to sell this if the price was right, or continue holding if it wasn't. I don't particularly like how concentrated my portfolio had become, but this was very much a function of what I saw as attractive prices in companies that seemed relatively safe and good (two factors often related). In the past I had done nothing when I had my desired weightings, but thought the shares had become particularly attractively priced.

To answer your question , of course not. And we must all do what we feel best and are comfortable with. Even at the current price my holding in Schroder is only about 3% of my portfolio, bang on median actually so I am very happy to continue to hold, besides which Schroder is in my opinion a well run operation and I am very interested to see at what price it settles down. If around £24/25 I see no reason why the price should not revert to its recent value of around £30 before too long but we will need to see what effect the current proposals have.

Dod

[KnightOfSpring]

Just to complete my argument for doing nothing, I have just had a chance to look at the share price over recent months. During 2021, the share price was mostly sitting at around £23/25 and it is only in the last few months that it drifted downwards. Unless an investor thinks the end of the Schroder world is nigh why on earth would he sell now when he could have done so for at least the same amount a few months ago? It is not as if the £24 or so which Bulldog got yesterday is either Sky high nor unlikely to be maintained so I just do not see the need for suddenly deciding to sell.

It is true that the yield will probably drop but not to much lower than its historic yield anyway. That is why yesterday I thought selling was so very short term. I see it anything but a no brainer to have sold whether an income investor or not.

Dod

Would you feel the same way about not selling some if the rise had taken SDRC to over 11% of your portfolio and the high yield, boosted by the 38% discount to SDR, was getting considerably reduced? I have sold down to 6% and still intend to go down to 4-5% (still a vote of confidence in SDR as this would equate to a 20-25 company portfolio at these weightings). At a guess I had maybe 6% of my portfolio in SDRC when it was last at these prices Nov/Dec 2021. I had added around 3.5% of my portfolio weighting to SDRC since mid Feb 2022 and was always willing to sell this if the price was right, or continue holding if it wasn't. I don't particularly like how concentrated my portfolio had become, but this was very much a function of what I saw as attractive prices in companies that seemed relatively safe and good (two factors often related). In the past I had done nothing when I had my desired weightings, but thought the shares had become particularly attractively priced.

To answer your question , of course not. And we must all do what we feel best and are comfortable with. Even at the current price my holding in Schroder is only about 3% of my portfolio, bang on median actually so I am very happy to continue to hold, besides which Schroder is in my opinion a well run operation and I am very interested to see at what price it settles down. If around £24/25 I see no reason why the price should not revert to its recent value of around £30 before too long but we will need to see what effect the current proposals have.

Dod

Good. Seems we are mainly singing from the same hymn sheet. The management always comes across as very trustworthy and competent and view the lower level holding as a long term holding for me.

[Dod101]

Yes. I regard the family shareholding as a positive and doubt that they will stray far from the conservative and long term outlook that they usually display. That suits me very well. I do not see me selling this investment in the near future. Just take the dividend as it comes.

Our friend Bulldog approaches investment differently and we cannot say he is wrong to take a quick profit.

Dod

[idpickering]

Q1 2022 update.

Schroders plc today confirms its total assets under management (AUM) at 31 March 2022 of £752.7 billion.

Full details here;

https://www.investegate.co.uk/schroders ... 00055865J/

[idpickering]

Publication of shareholder circular in connection with proposed simplification of Company's dual class share structure.

Schroders plc (the " Company ") has today published a Circular in relation to:

Tthe proposals first announced on 26 April 2022 to enfranchise its Non-Voting Ordinary Shares and carry out an associated Compensatory Bonus Issue for its Ordinary Shareholders;

A proposal to undertake a Sub-Division of all the Ordinary Shares in issue following the Enfranchisement; and
a related proposal to put in place a typical authority (and associated waiver under Rule 9 of the Takeover Code) to permit the Company to undertake buybacks of its shares, where the board considers it appropriate as part of the Company's capital management strategy and in the best interests of shareholders.

Notice of General Meeting and Class Meeting

For the purposes of approving these proposals, the Circular contains notices for two shareholder meetings each to be held as hybrid meetings on 15 August 2022 at 1 London Wall Place, London, EC2Y 5AU.

The first is a general meeting of Ordinary Shareholders and will start at 10.30 a.m. The second is a class meeting of Non-Voting Ordinary Shareholders and will start at 11.00 a.m. (or ten minutes after the end of the general meeting, whichever is later). The latest time to submit forms of proxy for the shareholder meetings is 11.00 a.m. on 11 August 2022.

Expected timing and cancellation of listing of Non-Voting Ordinary Shares

If the proposals are approved by the Company's Shareholders, it is expected that the Enfranchisement, Compensatory Bonus Issue and Sub-Division will become effective on 19 September 2022, with dealings in the New Ordinary Shares also starting from 8.00 a.m. on that day.

Pursuant to Listing Rule 5.2.8, the Company hereby gives notice that, subject to receipt of shareholder approval for the relevant resolutions, the Company intends to apply for the listing of its entire class of Non-Voting Ordinary Shares on the Financial Conduct Authority's Official List to be cancelled with effect from 8.00 a.m. on 19 September 2022.

Additional information

The Circular and associated documents have been submitted to the FCA's National Storage Mechanism (the " NSM ") and will be available for inspection on the NSM's website at https://data.fca.org.uk/#/nsm/nationalstoragemechanism. The Circular and associated documents will also be available on the Company's website at http://www.schroders.com/shareholdermeetings.

The expected timetable of key events is set out below, and fuller details of the proposal are set out in the Circular. All capitalised terms used in this announcement have the same meaning as in the Circular, unless otherwise stated.

https://www.investegate.co.uk/schroders ... 00060743S/

Ian.

[DelianLeague]

Publication of shareholder circular in connection with proposed simplification of Company's dual class share structure.

Schroders plc (the " Company ") has today published a Circular in relation to:

Tthe proposals first announced on 26 April 2022 to enfranchise its Non-Voting Ordinary Shares and carry out an associated Compensatory Bonus Issue for its Ordinary Shareholders;

A proposal to undertake a Sub-Division of all the Ordinary Shares in issue following the Enfranchisement; and
a related proposal to put in place a typical authority (and associated waiver under Rule 9 of the Takeover Code) to permit the Company to undertake buybacks of its shares, where the board considers it appropriate as part of the Company's capital management strategy and in the best interests of shareholders.

Notice of General Meeting and Class Meeting

For the purposes of approving these proposals, the Circular contains notices for two shareholder meetings each to be held as hybrid meetings on 15 August 2022 at 1 London Wall Place, London, EC2Y 5AU.

The first is a general meeting of Ordinary Shareholders and will start at 10.30 a.m. The second is a class meeting of Non-Voting Ordinary Shareholders and will start at 11.00 a.m. (or ten minutes after the end of the general meeting, whichever is later). The latest time to submit forms of proxy for the shareholder meetings is 11.00 a.m. on 11 August 2022.

Expected timing and cancellation of listing of Non-Voting Ordinary Shares

If the proposals are approved by the Company's Shareholders, it is expected that the Enfranchisement, Compensatory Bonus Issue and Sub-Division will become effective on 19 September 2022, with dealings in the New Ordinary Shares also starting from 8.00 a.m. on that day.

Pursuant to Listing Rule 5.2.8, the Company hereby gives notice that, subject to receipt of shareholder approval for the relevant resolutions, the Company intends to apply for the listing of its entire class of Non-Voting Ordinary Shares on the Financial Conduct Authority's Official List to be cancelled with effect from 8.00 a.m. on 19 September 2022.

Additional information

The Circular and associated documents have been submitted to the FCA's National Storage Mechanism (the " NSM ") and will be available for inspection on the NSM's website at https://data.fca.org.uk/#/nsm/nationalstoragemechanism. The Circular and associated documents will also be available on the Company's website at http://www.schroders.com/shareholdermeetings.

The expected timetable of key events is set out below, and fuller details of the proposal are set out in the Circular. All capitalised terms used in this announcement have the same meaning as in the Circular, unless otherwise stated.

https://www.investegate.co.uk/schroders ... 00060743S/

Ian.

Thanks, Ian. Very interesting.

D.L.

[idpickering]

You’re welcome D.L.

I hold SDRC, and have often toyed with topping up my holdings, but never seem to get around to it. Happy to hold, and have no intention of selling them either.

Ian.

[DelianLeague]

I have just noticed that SDR has a higher dividend yield than SDRC. In the past, I thought that this was generally the other way around and I assumed that the higher dividend was compensation for the inability to have any say in the company (non-voting). I haven't followed this share for a while but I do have some SDR shares.

D.L.

[simoan]

Post removed.

[Dod101]

I have just noticed that SDR has a higher dividend yield than SDRC. In the past, I thought that this was generally the other way around and I assumed that the higher dividend was compensation for the inability to have any say in the company (non-voting). I haven't followed this share for a while but I do have some SDR shares.

D.L.

I do not know the difference between SDR and SDRC. I do wish people would not write in code. The non voting shares have nearly always had a higher yield but that is because they have traded at a lower price than the voting shares. Both lots of shares receive exactly the same dividend.

The effect of the proposals has been to provide an uplift in the price of the non voting shares and a compensating reduction in the value of the voting shares since the overall value of the Company has not changed as a result of this reconstruction of the share structure. When the Voting shareholders get their extra shares, that will bring the values of each class of share to par I am sure.

Dod

[simoan]

I have just noticed that SDR has a higher dividend yield than SDRC. In the past, I thought that this was generally the other way around and I assumed that the higher dividend was compensation for the inability to have any say in the company (non-voting). I haven't followed this share for a while but I do have some SDR shares.

D.L.

I do not know the difference between SDR and SDRC. I do wish people would not write in code. The non voting shares have nearly always had a higher yield but that is because they have traded at a lower price than the voting shares. Both lots of shares receive exactly the same dividend.

The effect of the proposals has been to provide an uplift in the price of the non voting shares and a compensating reduction in the value of the voting shares since the overall value of the Company has not changed as a result of this reconstruction of the share structure. When the Voting shareholders get their extra shares, that will bring the values of each class of share to par I am sure.

Dod

I actually “bit my tongue” and removed my previous post for the same reason. I’m getting tired of people using poor data sources for making assertions on these boards and not double checking before posting. It’s just lazy. If two shares have the exact same dividend payment how on earth can the higher priced one have the higher dividend yield? This is basic maths folks.