Investment & Investing

If you would split it
up to different companies you wouldn't benefit from compound growth

Why not?

Maybe I got this wrong but I imagined you would have to sell some shares and move the money somewhere else and as a result reducing the potential future growth of that pot. I don't think
you will be able to buy the same kind of product from another platform throughout the decades.

The 85k thing doesn't cover stocks and shares I don't think.

^ yep, it's typically for cash in banks (investments being a riskier class altogether)

Anyone done a CGT / income calculation on Nutmeg a withdrawal from a non-isa (GI) account?

IIRC CGT is calculated on your average in-price, there’s no FIFO/LIFO calculation to be done. This makes it fairly simple to calculate your gain / loss.

Remember that if you are selling more than about £80k (check the precise number) you have to file a CGT report even if there is none payable.

Income should already have been declared on self assessment based on the figures they give you in annual tax certificates.

This is the difference between "saving" and "investing". I interpret "saving" to mean you stick your cash somewhere. "Investing" is buying something with that cash. Even if the company you bought the fund shares through goes tits up, you still own the shares. You just need to find someone else to sell them through.

If trading in the fund is frozen, then you're effed. See Woodford Investment Management back in 2019. But that's rare.

Even if the company you bought the fund shares through goes tits up, you still own the shares. You just need to find someone else to sell them through.

Somewhere, a meme stock holder just doubled down.

But that's rare.

A lot of rare things have happened recently.

Fund trading suspensions usually happen to those that invest in illiquid asset classes, off the top of my head it's happened most regularly with property funds.

If trading in the fund is frozen, then you're effed

To the extent that you cannot sell out of the fund. the fund's assets are still there - you just can't touch them for a while.

No, my life went a bit weird around that time and I left the country for a bit. I’ll get back on with those plans once my ‘Real’ life resumes. Perhaps by then the advice might be different 🤷‍♂️ I’ll be back.

trading 212 just emailed saying I can open an account - does anyone want to share a code so we both get a free share?

Yes please
http://www.trading212.com/invite/FysSdTA8

Thanks!

I've got shares in a company in my SIPP thingie and they're doing something...

Option 1: Rights to Lapse (Default)
Option 2: Rights to Exercise
Option 3: Apply for Additional Shares
The default option will apply to all Holders whose instructions are not received by the deadline date.

X have announced a Rights Issue whereby Shareholders have been issued with 1 right for every 15 NPV shares held. The ex-entitlement date is 16th August 2022.

Each right entitles the holder to subscribe for 1 new NPV share in X at a subscription price of £x per new share.

Holders may also subscribe for additional shares in excess of their basic entitlement. We have been informed that shareholders may only apply for additional shares up to 100% of their full entitlement.

Shareholders may only elect to subscribe for additional shares if they have exercised all of their rights. Excess elections may be subject to a scaling back.

Shareholders who wish to participate in this Offer should note we may be required to forward the beneficial holders' name, registered address and holding as of record date. With your instruction you are confirming that you are aware of the official restrictions and giving consent for us to forward the abovenamed details to our custodian if they are required.

Please ensure you have cleared funds in your account by our deadline date. Subscribing Holders will be credited with their new shares on or shortly after 13th September 2022.

It is the responsibility of any person wishing to subscribe for new shares to inform themselves and observe any applicable regulations of the relevant jurisdiction. With your instruction you are confirming that you are eligible to participate and are aware of the official restrictions.

So I can lapse, exercise or apply for more shares.

They're currently at 1.28 each and the change is for:
Rights ratio: 1 right for 15 shares
Subscription ratio: 1 share for 1 right
Exercise price: 1.30 per new share

If I leave it and default, what does "lapse" mean - I just effectively sell the shares I have?

If I opt-in and get rights for shares, what does that actually mean?

I think if it lapses you are left with the shares you had before (albeit they’re now diluted as other people will hold more shares) - you don’t have to sell the ones you’ve got.

If you opt in, you have to buy some more shares so will need to pay.

Ah, ok. Similar thing they did with Brewdog rounds. But they kind of split them automatically whereas this I have to specify what I want to do. Need to work out wtf it'll cost to hold them..

aka I'll leave it too long and get the Default

A split is just some housekeeping that doesn't change the market cap though, whereas a rights issue is them raising more capital.

It's just a way to issue more shares that gives existing investors a chance to avoid dilution. In principle it only matters for control (if you want to own x% for voting purposes), if the issue changes the price of your existing shares, or if the exercise is at a substantial discount.

In theory if the money raised is just added to the value of the company, it shouldn't change the price. Depends on everyone else's opinion of their plans for the money raised though.

Cheers. Not 'useless' at all :)

Not even I can be useless at everything!

I used to have some exposure to corporate actions at work, which I don't miss at all.

opinions on investment trusts for long term ISA investment? This is for my eldest who isn't that interested in stock picking or anything like that, so looking to buy one or two "pre diversified" investments with money he's saved up from gifts etc and hopefully he add to it as and when he has anything spare.

RIT is one I looked at previously, and Scottish Mortgage has also been brought to my attention - any others?

Vanguard 100% equity. Actively managed investment trusts have higher fees and generally perform worse.

Why an investment trust specifically? (Just out of interest)