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When is an Investment Trust not an Investment Trust?

This article reflects the opinions of its author and not necessarily those of ShareSoc. Opaque Accounts of Alternative Asset Trusts Traditionally, investment trusts invested in highly liquid, listed, operating businesses. The accounts for such trusts are straightforward. The balance sheet simply reflects the market value of the trust’s investments and profit/loss is determined by the change in valuation of assets and liabilities plus any income generated by the investments. In recent years, however (and some not so recently), a number of “alternative” investment trusts ...

Bitcoin vs Cream Cakes

This article reflects the opinions of its author and not necessarily those of ShareSoc. FTX prosecution vs that of Patisserie Valerie FTX, a cryptocurrency exchange which became one of the largest in the world with billions in deposits, declared bankruptcy on 12 November 2022.  The trial of Sam Bankman-Fried (SBF) commenced in the US at the Manhattan federal court on 3 October, 2023. SBF faced seven counts of fraud and conspiracy.  Three FTX executives agreed to plea deals, hence they became witnesses for the ...

Bonds

This article reflects the opinions of its author and not necessarily those of ShareSoc. Is it time to buy bonds? I have personally been a huge sceptic of bonds and hence a sceptic of the 60/40 model of equities to bonds put forward by many financial advisers as a model for many investors with medium risk appetite. Bonds have had a 40-year bull market, but all that came to an end when interest rates went up from 0.25% to around 5% as QE was ...

IBP Special Administration and Thames Ventures VCT 1

This article reflects the opinions of its author and not necessarily those of ShareSoc. I have a very small holding in Thames Ventures VCT 1 (TV1). This is the remnant of holdings in other VCTs originally invested from 1997 onwards and which have generated a total return of minus 58% to date according to Sharescope, although I doubt that is accurate due to multiple consolidations and name changes. I would have sold the holding long ago if it were not for the roll-back ...

SJP and Hargreaves Shares Crash as FCA Consumer Duty begins to bite

This article reflects the opinions of its author and not necessarily those of ShareSoc. Shares in the FTSE 100 group SJP (St. James’s Place LSE: STJ) have shed more than 35 per cent since July, when SJP announced modest changes to fees in response to the rules. The shares were down 8 per cent in early trading on Friday. Investors’ concerns over its business model have intensified since the Financial Conduct Authority introduced its Consumer Duty in July, which forces financial services ...