I’m thinking about opening a position in NBMI too. I figure I can use the monthly income to cover all my investment fees.
On the surface, there’s a lot to like. It trades at a discount and has grown its dividend. Long-term share price return is a little lacklustre, but it’s positive and it doesn’t use gearing unlike some of its competitors.
I may split the allocation 50:50 between NBMI and SMIF, the only other monthly payer in this sector.
Investment trusts can buy back shares yes
Hi @NeilB I can’t share more light on this specific redemption as I don’t know the background.
Share redemptions are not unusual. Some companies issue redeemable shares. The exact rules under which these shares are redeemed is normally written into the articles of association. For example, these shares can be redeemed at some fixed pre-agreed date or some fixed schedule (e.g. once a year) on a date agreed via a board resolution.
One reason such shares exist is to allow investors, such as the original venture capitalists, a simple exit strategy (of course distributable funds need to exist for this to be viable).
Another reason for redemption shares with certain types of investment trusts is that the share manager can meet demand without issuing new shares (i.e. no dilution).
Cant seem to find smif on here wanted to do some research on it. Any way you can direct me to it
I’m afraid SMIF’s not on FT yet, so I may buy it elsewhere. You can vote for it to be added here:
Just increased my holdings in these by 150% hoping it will be paying a nice amount into my retirement fund.
What is the mail from ft about unable to buy more of these??? Just get a good amount and it gets stopped.
The cash exit facility as mentioned earlier in this thread is happening today so I guess things suspended temporarily until all concluded?
Edit - ok, I didn’t see my Freetrade message until just now. Bit annoying as i had just started building up my investment. Not many UK monthly UK divi payers.
Exactly I just massively increased my holding
Can you post a copy of the message please?
Urgh, looks like other trusts – such as TFIF – may have been pulled too.
Unfortunately, I may now transfer my Isa and Sipp to a full-service broker because niggling issues like this just keep mounting up.
I think thats fair enough. All these retrospective compliance issues make me concerned for my SIPP
Fair enough as in they have banned me from buying more?
It won’t stop here next they will make us sell them.
It appears Hargreaves Lansdowne were not compliant in allowing me to buy them in the first place.
Sorry, its fair enough to be concerned by such actions from FT.
The thing with other brokers is that theyll have a process by which you can prove that you’re an experienced investor or whatever. It might be years before freetrade give you that option
Actually they don’t they just ask you if you are an experienced investor. I was only investing with Hargreaves Lansdown for 5 years and i owned the Vietnam trust almost from the beginning. Eitherway should not be available in the first place?
I’d rather not switch. I’m invested in FT, literally and metaphorically, and have had an account since day dot more or less. However, this is the straw that broke the camel’s back and I’ve lost patience.
No autoinvest, no Lisa or Jisa, no Reits in Isas, no web platform etc, and too few signs of progress. I was already concerned about the lack of range; now, a chunk of my watchlist has been removed.
I will consider FT for future Isas. After all, the platform’s helped me build a portfolio that’s of a size that an extra £100-150 a year in fees with Hargreaves Lansdown is relatively negligible.
Is this serious? What makes these companies so different to GME, 4D, Napster or MGC for example? It seems madness for this to be done retrospectively and another negative move from FT. As mentioned by others these stories are seriously starting to make me wonder about my SIPP here long term.
I actually wanted to put some in this company this month and can’t now
Is there any more actual reasoning than customers are not experienced enough? Sounds a really stupid excuse and can’t help feel there is more to it.