Newsletter January 2024
1/1/22
5/4/22
1/7/22
5/10/22
1/1/23
5/4/23
1/7/23
5/10/23
1/1/24
FTSE 100
7385
7614
7169
7053
7452
7663
7532
7452
7733
FTSE All Share
4208
4239
3941
3849
4075
4162
4096
4032
4232
Dow Jones (US)
36338
34641
30775
30274
33147
33483
34408
33120
37690
S&P 500 (US)
4766
4525
3785
3783
3840
4090
4450
4258
4770
Nikkei 225 (Japan)
28792
27788
26393
27121
26095
27813
33189
31075
33464
PIMFA Balanced
1849
1806
1665
1639
1661
1698
1692
1682
1788
Regulatory disclaimer: This newsletter is provided solely to enable clients to make their own investment decisions. The information within this newsletter does not constitute advice or a personal recommendation, or take into account the particular investment objectives, financial situations, or needs of individual clients. It may therefore not be suitable for all recipients. If you have any doubts as to the suitability of this service, you should seek advice from your investment adviser. The past is not necessarily a guide to future performance. The value of investments and the income from them can fall as well as rise and investors may get back less than they originally invested. Certain Investment Trusts will permit using gearing as an investment strategy. Gearing is a strategy which involves borrowing money to increase holdings of investments or investing in warrants or derivatives. Such a strategy is likely to result in movements in the price of the relevant security being amplified significantly and may be subject to sudden and large falls in value and investors may get back nothing at all. Any tax rates and reliefs are those currently applying, are dependent on individual circumstances, and could be subject to change. All estimates and prospective figures quoted in this newsletter are forecasts and are not guaranteed. Within our advisory service we offer advice on a wide range of investments including shares, corporate bonds, gilts and managed funds. Within the RDR our advisory service is recognised by the FCA as a ‘restricted’ service as we do not offer advice on the whole of the financial planning market which includes products such as life policies and personal pension schemes. Barratt and Cooke is the trading name of Barratt & Cooke Limited. Registered in England No. 5378036. Barratt & Cooke Limited is authorised and regulated by the Financial Conduct Authority, who are based at 12 Endeavour Square, London, E20 1JN. Source: Iress and FTSE International Limited (‘FTSE’) © FTSE 2024. ‘FTSE®’ is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and /or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and /or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. Cover photo: Crispin Jones on Unsplash
Persto et Praesto My old school’s motto is Persto et Praesto: “I stand firm, I stand fast”
To have conviction and press on, even when faced with adversity. I try to use these words in everyday life. They have been comforting over the last few years when setting out on endurance events and, more recently, to help overcome pressures arising from fairly irrational stockmarket movements. I do still quake in my shoes over a four foot putt though; perhaps one day I’ll overcome those gremlins!
I am pleased to report that the last couple of months has provided some welcome respite as market participants have shifted their focus back towards companies of a higher calibre.
It is fair to say that, as with a number of medium to longer term investors, the first nine months of 2023 were very challenging. Our preference for quality growth equities rather than ‘bottom fishing’ for perceived value plays, or a ‘dash for trash’ (seeking discounted opportunities in lower quality companies), certainly put performance under a bit of pressure. However, I am pleased to report that the last couple of months has provided some welcome respite as market participants have shifted their focus back towards companies of a higher calibre. These are the organisations which given their ability to compound capital on a consistent basis have, over the course of time, rewarded shareholders and significantly outperformed indices.
Barratt & Cooke Newsletter January 2024
1
On a ‘macro’ (overall economic) basis, the headwinds of early 2023 were: 1. Inflation – for the majority of the year inflation remained stubbornly high, in a range of 10.4% to 6.7% between January and September before starting to taper significantly; UK CPI now stands at 3.9%. As we know, inflation not only affects consumers but businesses which are impacted by the rising costs of raw materials (and services), energy and employment. It is fairly binary, these additional costs either result in price hikes, leading to a potential loss of customers (volume contraction), or a squeeze in profits (margin contraction). Neither outcome is positive for company performance.
2. Interest rates – at the start of 2023 the Bank of England base rate stood at 3.0% and is now 5.25%. Of course interest rate rises affect individuals, detrimentally for mortgage holders and beneficially for depositors (if these rises actually filter through to bank accounts). However, companies with significant debts and Investment Trusts with gearing suffer too, particularly when terms end and borrowings need to be refinanced.
On a ‘micro’ (company) basis, the headwinds of early 2023 for portfolios were: 1. The ‘dash for trash’ in UK lower grade companies. In September I looked at the FTSE 100 top risers for the calendar year to date. This was a fairly grim exercise where the list included Centrica, Marks and Spencer, Rolls Royce, B&M European Retail and Howden Joinery. None of these were on our buy list, primarily due to structural challenges (either company specific or in their wider industry) which provided little comfort for their medium term prospects. Indeed, the 2023 rally for these companies was actually a recovery from multi-year share price lows; they had all fallen by over 50% before bouncing. Arguably we were a little caught out by this rapid switch in market sentiment but, even with the benefit of hindsight, I would not be comfortable compromising portfolio quality in order to include exposure to such ‘value’ plays. 2. The share prices of the ‘Magnificent Seven’ (US stocks: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, Tesla) continued to appreciate rapidly. Much of this strength is driven by the self-fulfilling automated tracker algorithm process, or put more simply tracker funds ensuring the underlying portfolio accurately replicates the relevant index. The larger the market capitalisation of a stock, the higher the weighting it has within an index and therefore, by default, the increased demand for shares as money enters a market.
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Barratt & Cooke Newsletter January 2024
This has driven some valuations to what we consider unsustainable levels. It works on the upside but also on the downside, as witnessed in the early part of 2022 when: • • • • • • • •
NVIDIA fell by 53% Meta fell by 50% Amazon fell by 40% Tesla fell by 36% Alphabet fell by 26% Microsoft fell by 26% Apple fell by 20% In addition, Netflix (not part of the Magnificent Seven) fell by 72%.
All from 7th December 2021 – 30th June 2022 Within client portfolios we retain exposure to Alphabet and Microsoft, along with some holdings in Scottish Mortgage IT, which is also in the Opie Street funds (this Investment Trust has a high technology bias). We held Amazon but, as appropriate, we divested during the summer as, despite being attracted by the Amazon Web Services (AWS) division, we became concerned with capital allocation within the business where the cashflow generated by AWS was offset by the cash consumptive nature of the e-commerce division (online retail and delivery). It really is a question of how long the profits from AWS can prop up the delivery vans. In many instances we paired this sale with an investment into Mastercard, where the move to a cashless society still has huge growth potential, particularly in the emerging world. We are content to retain diversified exposure to the global technology sector, but retain discipline in ensuring responsible allocation across sectors and geographies.
In addition to these thematic challenges, a selection of companies suffered disproportionately following either underwhelming results or weaker trading outlooks.
Individual stock disappointments and over-reactions included: • The Experian share price falling by more than 10% on 24th October due to a peer, TransUnion, downgrading their profit forecasts for the year. This appeared to be an overreaction, with the market dismissing the fact that Experian benefits from better diversification than TransUnion, both by product range and geography. Results the following week supported this and the share price has subsequently risen to a level significantly above where it was trading pre 24th October. • Mastercard’s share price declined by more than 5% on 27th October despite reporting third quarter numbers which came in ahead of market expectations. A cautious outlook statement was the cause; however, Mastercard is still targeting double digit revenue growth for 2024. In early December it announced a 16% dividend increase and a new $11bn buyback programme. The share price has, unsurprisingly, subsequently rallied and is approximately 15% above the low posted in October. • Concerns arose that Alphabet was failing to grow its market share in the cloud as quickly as expected, causing the share price to fall which we felt was unjustified. Indeed, sales in its cloud unit rose by 22% in the third quarter of 2023, whilst all other parts of the business performed as expected. Short term share prices are determined by expectations and missing these often causes a negative reaction, but we felt the near 10% share price decline was overdone. Fortunately, it took just two weeks for the share price to recover those losses.
• Diageo shares have been weak, initially driven by a general market slump then accentuated by negative read across from peers, namely Remy Cointreau, followed by a trading update which highlighted a weaker performance and outlook, primarily in Latin America and the Caribbean (but this is only 10% of total revenue). Unlike those companies mentioned previously, the Diageo share price is yet to experience a similar recovery, but, with a world-class portfolio of brands and less than 5% of total global alcoholic beverage sales, we still see potential for significant growth at Diageo. So, whilst near term news flow could fuel volatility, we believe that over the long-term the company will deliver attractive shareholder returns. These instances occurred during October when the FTSE 100 declined by almost 4%. It is during such periods, where nervousness around equities heightens and so any news perceived as marginally disappointing can evoke fear amongst investors and cause widespread selling, often without a great deal of justification. If the above news was reported during a period of ‘blue on the board’, the chances are the reactions would have been more muted. As longer-term investors we look through near term volatility and market dislocations focusing on the fundamentals. Of course there are instances where share price movements, up or down, are warranted and in such instances we revisit each investment case. Whilst we are happy to adapt our view, in most cases it is about having knowledge, confidence and conviction in the business models and letting the quality shine through over time.
That is the bad news out of the way. There was plenty of it but fortunately it is backward looking and in our opinion there is more to be optimistic about.
Barratt & Cooke Newsletter January 2024
3
On a macroeconomic level: 1. Inflation – this is finally coming under control. At the start of 2023 when asked what inflation would be in December, our stance was that the Bank of England target of 2% was way off the mark but 4.5% would be achievable due to factors such as higher energy costs ‘falling out’. The November number was surprisingly good though at 3.9% (falling further from October’s 4.6% and beating market expectations by a full 0.5%). Of course inflation is still inflation, and it is important to remember that these increasing prices are on a 14.6% premium to prices in January 2022, having locked in two years of higher inflation already; no wonder GDP has slowed.
2. Interest rates – the general rhetoric has been that the Bank of England will not start reducing interest rates until inflation is under control (with a target of 2%), that is certainly what the Governor was saying in October when we attended a presentation with him in Norwich. However, Jerome Powell, Chair of the US Federal Reserve, was saying similar things until very recently, with inflation across the pond now standing at just 3.1% markets are pricing in three or four rate cuts (of 0.25% each) in 2024. Quite often the Bank of England will follow America’s lead, and so we really do feel that we are at peak rates, and the next movement will be downwards. It is unlikely that they will fall as quickly as they rose, but the burden on company (and consumer) debt is likely to diminish.
4
Barratt & Cooke Newsletter January 2024
3. The rotation back out of ‘bond proxies’ seems to have been exhausted. This is a bit technical, but it is an important force that has been at work. When interest rates were close to nil institutional investors had to hunt for returns from other sources, even though risk was higher, and so they reallocated a proportion of their gilt exposure to blue chip equities in order to seek to protect against inflation and source dividend distributions. As interest rates rose, they were able to take this risk off the table by disposing of these blue chip equities and repurchase lower risk gilt and bond holdings on gross redemption yields of 4%+. This switch meant that there were large sellers of some of our preferred equities, not because of company fundamentals but simply due to a rotation out of equity into fixed income. This rotation seems to have slowed.
On a microeconomic level: 1. The US equal weighted index is catching up with the Magnificent Seven, demonstrating that technology is starting to lag a little from its multi-year highs.
2. Premium UK companies are demonstrating robust characteristics again with some results being well received by the market.
3. The Opie Street funds have had a good couple of months, bouncing back well where the underlying collectives have had a strong period.
We therefore believe the recent momentum of many of our favoured companies will continue. Equity
05/10/2023
29/12/2023
Price Increase %
Idexx
430.5
555.1
29%
Xylem
90.1
114.4
27%
ASML
548.4
681.7
24%
Diploma
2902
3582
23%
Halma
1938
2284
18%
Experian
2719
3202
18%
Microsoft
319.4
376.0
18%
Spirax Sacro
9292
10505
13%
All prices above are in local currency
Of course the ‘R’ word (recession) is becoming a little more prevalent and with the Office for National Statistics most recently reporting a quarterly GDP contraction of -0.1% another negative quarter to be reported in February would signal a mild recession. This is part of the reason that over time portfolios (except those with an income mandate which have to have a higher weighting to the UK) are increasingly exposed to overseas equities, with limited underlying exposure to the domestic UK economy. There are of course significant elections looming, so it won’t all be ‘smooth sailing’. But then it rarely is.
Barratt & Cooke Newsletter January 2024
5
The Conservative Party’s last roll of the dice? It is looking increasingly likely that a general election will be called in the Autumn. Elections are often Spring affairs but the Conservative Party needs as much time as possible to try and win back voters, although it is unlikely that nine months will be long enough. Whilst, at the moment, the majority of electoral voters seem to have given up all hope on the Tory party, Rishi Sunak and Jeremy Hunt appear to be trying to plot a comeback from a seventeen point deficit in the polls. Their latest strategy, to try and rise from the canvas, is to see through on the pledge of:
“Once inflation is under control, we will cut taxes.” Inflation is getting there and so now is the time to strike. You may have heard the rumours whilst finishing the last of the turkey and your third post Christmas jacket potato, that they plan to slash IHT (inheritance tax), perhaps: •
Removing inheritance tax entirely.
•
Or increasing the tax-free threshold to £1m.
•
Or reducing the rate of inheritance tax from the current debilitating 40% to a more manageable 20% on the net estate.
The principle behind the idea is that this may allow family homes to be handed down generations, without the requirement to sell and fund the Treasury’s pot. Whatever the rationale, any of these changes could prove to be hugely positive for beneficiaries of savings accounts and stockmarket portfolios. This really is a bribe of the highest order to tempt back voters. Is it an election winner? Probably not. But would it provide some welcome respite in a high tax environment? Absolutely. We will see how this unfolds and will follow it with great interest, as it could be worth hundreds of thousands of pounds to families.
Whatever the rationale, any of these changes could prove to be hugely positive for beneficiaries of savings accounts and stockmarket portfolios.
In other news the last three months has seen: • Phase two of HS2 cancelled by Rishi Sunak with a commitment to reallocate an extraordinary amount of these funds to better the existing railway infrastructure; what a debacle. • Further atrocities as war breaks out in Gaza – so sad, I shall not comment further. • The deaths of the great Sir Bobby Charlton and Terry Venables – both heroes. • South Africa won three games by a single point to claim the Rugby World Cup. ‘Chapeau’ England on a stellar campaign despite the nay sayers.
• The sacking of Suella Braverman. • India won all their matches in the Cricket World Cup before losing the final to Australia – disappointing. • The saga of the Rwanda agreement continues. We recently heard that Mr Blair wanted to send all immigrants to the beautiful Isle of Mull... • The COVID-19 enquiry investigations. • The Post Office enquiries and another hero, Mr Bates.
Barratt & Cooke Newsletter January 2024
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Finally, Mary Earps scooped Sports Personality of the Year. There has been much commentary on this but, in my view, it is totally deserved. I know the likes of Mr Barton have referred to it as a ‘woke’ vote but, for me, there were two iconic sporting moments of 2023. Way back on 2nd January 2023 we witnessed the greatest leg of darts as the great Michael Van Gerwen missed double 12 for a nine darter. Michael Smith then hit it with 17/18 perfect darts in one leg; goodness only knows why Smith didn’t make the call up for SPOTY.
The other, I’m afraid, wasn’t Stuart Broad’s six with the bat and wicket with the last ball on his final Test appearance. England’s women were losing 1–0 in the World Cup final when Spain were awarded a penalty. Earps saved to keep England in the game. The regulation save wasn’t why she deserved to win the coveted award though, it was her reaction immediately after; sheer passion, sheer belief, sheer desire, sheer fortitude. In a world of ‘woke’, that was the least woke moment of the year. It was in fact an extraordinary battle cry for her team mates to go to war. Russell Crowe in Gladiator didn’t get close to Earps!
Synergies When conducting equity research we often seek to identify synergies and forecast how they can impact profit margins. We also feel that the synergies we create within the team at Barratt and Cooke are strong, partly as we all work from one building where we can share ideas. A synergy is created when the whole is far more effective than the sum of the individual parts i.e. 2+2 = 5.
My brother Sam and I were fortunate to be in Rome for the Ryder Cup and nowhere has a synergy been more decisive. Despite differences in language, the European team with an average world ranking of 29.3 annihilated a US team with an average ranking of 12.3. A massive gulf in class was overcome with the brilliant leadership of Luke Donald under the yellow and blue flag of Europe. It goes to show that the underdog can prevail, and in this context, we are quietly confident that UK businesses will perform well on the global stage in 2024.
The underdog can prevail, and in this context, we are quietly confident that UK businesses will perform well on the global stage in 2024.
Conclusion On a recent family holiday, having finished Alistair Brownlee’s excellent book, I reached for the book next in my rucksack...
‘The Greatest Trade Ever’ An account of John Paulson’s subprime trade during the Global Financial Crisis. This was going to be a somewhat heavier read! You will have heard CWLB talk of smoke and mirrors in times gone by. Paulson adopted a similar stance and started ‘shorting’ (where in simple terms you make money from a stock or asset class falling in value) US subprime mortgage - backed property bonds. It is fair to say Paulson was very early to the party, he started building his position during 2004/5. It wasn’t until the winter of 2007/8 that the market stopped running against him. Whilst some of his investors lost their patience he stuck to his guns. “Persto et Praesto”.
Then when all hell broke loose, including the default of Lehman Brothers, his trade reaped the rewards. There is no doubt that his positioning had great risk, but the key was extreme patience and greater conviction day by day, even when the headwinds were blowing! We don’t take on quite such inflated risk within client portfolios, and we do acknowledge that sometimes we get things wrong which leads to re-evaluation, but the principal is similar. I am glad we only had to wait until the back end of 2023 for the rotation to start though, not three or four years. That said, if we had to, so be it. Bring on 2024. Persto et Praesto! William Barratt Chairman January 2024
The key was extreme patience and greater conviction day by day, even when the headwinds were blowing!
p.s. I often credit fellow contributors in these newsletters, and Ashley Baxter (Research Analyst) has helped me with much of the data throughout.
Barratt & Cooke Newsletter January 2024
9
January 2024 equity suggestions FTSE 100 companies
Price 01/01/24
Yield
52 week High Low
BEVERAGES
Diageo PLC Ordinary Shares
2856p
2.8%
3790p
2719p
CHEMICALS
Croda International PLC Ordinary Shares
5050p
2.1%
7270p
4018p
FINANCIAL SERVICES
London Stock Exchange PLC Ord Shares
9274p
1.2%
9438p
7094p
FOOD PRODUCERS
Unilever PLC Ordinary Shares
3800p
3.9%
4483p
3719p
HOUSEHOLD GOODS
Reckitt Benckiser PLC Ordinary Shares
5420p
3.4%
6570p
5326p
INDUSTRIALS
Halma PLC Ordinary Shares Spirax-Sarco Engineering PLC Ordinary Shares
2284p 10505p
0.9% 1.5%
2520p 12350p
1802p 7908p
LIFE ASSURANCE
Phoenix Group Holdings PLC Ord Shares
535p
9.7%
647p
436p
INFORMATION SERVICES
RELX PLC Ordinary Shares
3110p
1.8%
3205p
2277p
MINING
Anglo American PLC Ordinary Shares Rio Tinto PLC Ordinary Shares
1971p 5842p
5.3% 5.5%
3699p 6406p
1630p 4510p
NONLIFE INSURANCE
Admiral Group PLC Ordinary Shares
2684p
5.5%
2807p
1793p
OIL & GAS
Shell PLC Ordinary Shares
2572p
4.1%
2793p
2150p
PHARMACEUTICALS
AstraZeneca PLC Ordinary Shares
10600p
2.2%
12390p
9851p
SUPPORT SERVICES
Bunzl PLC Ordinary Shares Experian PLC Ordinary Shares Intertek PLC Ordinary Shares Diploma PLC Ordinary Shares
3190p 3203p 4246p 3582p
2.0% 1.4% 2.6% 1.6%
3235p 3241p 4549p 3642p
2680p 2366p 3747p 2566p
UTILITIES
SSE PLC Ordinary Shares
1856p
4.7%
1933p
1485p
FTSE 250/small cap/AIM companies HOME CONSTRUCTION
Persimmon PLC Ordinary Shares
1389p
5.7%
1531p
944p
TECHNOLOGY
Keywords Studios PLC Ordinary Shares
1662p
0.1%
3000p
1252p
Softcat PLC Ordinary Shares
1360p
1.9%
1534p
1051p
BEVERAGES
PepsiCo Inc Cap
13323p
3.0%
15738p
12784p
FINANCIAL SERVICES
CME Group Inc Common Stock Visa Inc Common Stock Mastercard Inc Common Stock MSCI Common Stock
16516p 20418p 33449p 44361p
2.1% 0.8% 0.6% 1.0%
18270p 20956p 34040p 47248p
13795p 17100p 27984p 36194p
FOOD PRODUCTS
Nestlé SA Shares
9050p
3.0%
10559p
8801p
HEALTHCARE PRODUCTS
Coloplast Common Stock
8982p
2.7%
11752p
8086p
IDEXX Laboratories Inc Common Stock
43530p
-
44635p
30724p
HOUSEHOLD PRODUCTS
Church & Dwight Co Inc Common Stock Colgate-Palmolive Common Stock Procter & Gamble Common Stock
7416p 6251p 11492p
1.2% 2.4% 2.6%
7919p 6716p 12832p
6363p 5548p 11221p
INDUSTRIALS
Atlas Copco Class A Common Stock Xylem Inc Common Stock Otis Worldwide Corp Common Stock Schneider Electric SE Shares
1358p 8969p 7017p 15713p
1.3% 1.2% 1.5% 1.8%
1369p 9708p 7311p 15909p
932p 7206p 6038p 11618p
INFORMATION SERVICES
Verisk Analytics Inc Common Stock
18733p
0.6%
20514p
14027p
PERSONAL GOODS
Estee Lauder Common Stock L’Oreal Common Stock LVMH Moet Hennessy Louis Vuitton SE Shares Nike Inc Common Stock
11470p 39045p 63597p 8515p
1.8% 1.3% 1.7% 1.4%
23068p 39672p 80055p 10690p
8431p 29437p 56898p 7269p
PHARMACEUTICALS
Novartis CHF Registered Shares
7910p
3.8%
8116p
6303p
Novo Nordisk DKK Series B
8115p
1.0%
8611p
5357p
Alphabet Inc Common Stock A ASML Holding NV Common Stock Microsoft Inc Common Stock
10958p 59071p 29498p
0.9% 0.8%
11586p 60345p 30480p
7044p 44583p 18209p
Overseas companies#
TECHNOLOGY
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Barratt & Cooke Newsletter January 2024
# Dividends on overseas holdings will be subject to withholding tax at the local rate
Collective investments
Price 01/01/24
Yield
52 Week High Low
Discount/ (Premium)
UK
Mercantile I/T Throgmorton I/T
222p 618p
3.4% 1.9%
224p 670p
177p 503p
10.4% 4.9%
GLOBAL
Biotech Growth Trust I/T Impax Environmental Markets I/T JP Morgan Global Growth & Income I/T Keystone Positive Change I/T Scottish Mortgage I/T Smithson I/T
894p 400p 503p 225p 808p 1415p
1.1% 3.5% 0.2% 0.5% -
979p 458p 505p 229p 815p 1489p
715p 332p 426p 182p 605p 1164p
6.9% 8.8% 1.7% 3.0% 7.4% 12.0%
EMERGING MARKETS
Schroder Asian Total Return I/T
440p
2.5%
457p
384p
5.8%
WS OPIE STREET FUNDS
WS Opie Street Balanced Fund Acc. Shares WS Opie Street Balanced Fund Inc. Shares WS Opie Street Growth Fund Acc. Shares WS Opie Street Growth Fund Inc. Shares WS Opie Street Income Fund Acc. Shares WS Opie Street Income Fund Inc. Shares
436p 391p 468p 455p 398p 368p
2.9% 0.8% 3.7%
436p 395p 468p 456p 398p 377p
391p 351p 417p 405p 361p 335p
-
Alternative investments INFRASTRUCTURE
3i Infrastructure PLC I/T Renewables Infrastructure Group Ltd I/T
322p 114p
3.6% 6.3%
347p 134p
277p 99p
-
PRIVATE EQUITY
Pantheon International
311p
-
311p
231p
-
88.7p 73.3p
3.4% 4.9%
89.1p 74.8p
80.2p 68.2p
-
Fixed interest investments CORPORATE BOND
GOV. STOCK
Aegon Inv. Grade Corporate Bond Fund Premier Miton Corp Bond Monthly Income
4.25% Treasury 2027 0.125% Treasury 2028
Price 01/01/24
Gross Interest Yield
Gross Redemption Yield*
Payment Dates
Redemption Date
£103.12 £87.77
4.1% 0.1%
3.4% 3.5%
Jun/Dec Jan/Jul
7 Dec 2027 31 Jan 2028
Inflation Rate* 3% 5% INDEX LINK.
0.125% Treasury I.L. 2028
£136.99
0.1%
2.8%
4.7%
Feb/Aug
10 Aug 2028
GOV. STOCK
4.125% Treasury I.L. 2030
£350.89
3.3%
2.9%
4.7%
Jan/Jul
22 Jul 2030
* Equivalent Gross Redemption Yield for Index Linked Gilts assuming RPI inflation averages 3% or 5% to redemption. ** Price adjusted for inflation (please note the published price may be different as it does not include accrued inflation)
Source: Iress and FTSE International Limited
Barratt & Cooke Newsletter January 2024
11
FTSE 100 – previous quarter 7800 7700 7600 7500 7400 7300 7200 01/10/23
01/12/23
01/11/23
01/01/24
FTSE 100 – 1 year 8200 8000 7800 7600 7400 7200 01/01/23
01/07/23
01/04/23
01/10/23
01/01/24
FTSE 100 – 5 year 8500 8000 7500 7000 6500 6000 5500 5000 4500 01/01/19
12
01/01/20
Barratt & Cooke Newsletter January 2024
01/01/21
01/01/22
01/01/23
01/01/24
Source: Iress
Barratt & Cooke is the trading name of Barratt & Cooke Limited Registered in England No. 5378036. Registered Address: First Floor Suite, 2 Hillside Business Park, Bury St. Edmunds, Suffolk, IP32 7EA. Barratt & Cooke Limited is authorised and regulated by The Financial Conduct Authority, whose address is 12 Endeavour Square, London, E20 1JN. Barratt & Cooke Limited is a Member of the London Stock Exchange
5 Opie Street, Norwich, Norfolk NR1 3DW 01603 624 236 barrattandcooke.co.uk