Well, I for one have found these KIIDs a revelation - at least the bit right at the end that tells you what the actual ongoing costs of the product are. Who knew, for instance, that RIT's costs are touching 4% instead of the 1.and-a-bit % that always appeared as their annual costs in all previous documentation and web info?
If the changes are annoying that's the fault of XO and other brokers who haven't got their acts together. It surely can't be that difficult for them to set up a tick box or two on the trading page so you can say you've read the KIIDs. I suspect they have been dilatory in getting hold of them from investment houses or doing the necessary IT work to get them uploaded etc.
Blaming the EU for our own shortcomings, what a novelty ......
Different brokers are handling KIDs in different ways.
On HSDL, you have to tick on the KID document to download it and then click on a box to say you've read it. The HSDL system will not allow you to click on the "I have read it" box unless you initiate a download.
Barclays also requires that you click on a box to say you've read the KID before you can initiate a trade. Some of the KIDs are missing that are relevant to me - MRCH (Merchants) and BRGE (Blackrock Greater European Emerging Markets) so you can sell but not buy. Barclays say they haven't been provided with the KIDs but they are on the IT's own web site so they're not being proactive to get it sorted out.
There is an anomaly. The Barclays system will conduct an automatic divi reinvestment without having indicated you've read the KID (if one exists) and without a KID being in place for the "Buy" function if you want a new tranche. Makes a bit of a mockery of the regulations.
I spoke to XO in the phone this morning afterI was informed by the web platform that I couldn't buy any SMT because I had not confirmed I had read the KID.
The lady i spoke to unlocked it for me on the phone and then sent me the KID by email, which was absolute tosh and a total waste of my time to read.
I am very disappointed that the EU has just placed an irritating barrier in the way of me investing in things I have researched and chosen. As far as I can tell, the only place I could actually get a copy of the wretched document was from X-O themselves, so obviously, no, I have not read the silly thing. Its pure nannying, and pretty much pointless too. In future, I am just going to say that I have read the KID, but I won't actually read it. I expect most will do the same.
Back to practicalities, the lady I spoke to said that in future I can just send them an email with a list of tickers I have "read the KID" for, and they will tick the box for me so I can trade them in future. What a pointless charade.
She also said that the devs are working on putting a tick box on the trading page where this requirement applies so you can just tick the box and get in with it, but they haven't got it in place yet.
Good to know the EU is wasting so much of their and our time and money on pointless hoops for us to jump through that add absolutely zero value.
Amusingly, this is what Scottish Mortgage thinks of this new KID nonsense:
I think those are 2 different things.....I have just been sent one by Jarvis for complex instruments because of my holdings in 3UKS...a leveraged short tracker....so I can understand that, but has anyone ever even come across a KIID for an investment trust (I am not even sure they exist)
I had to fill out a questionnaire for HL if I wanted to continue to deal in index-linked gilts, as this was considered to be a complex / risky investment. HL didn't need any such thing for my Investment Trust investments, however risky they might be. I'd consider an investment in Scottish Mortgage to be more risky than one in gilts.
On 28 November 2017, owing to demand in the market, the Company announces the issuance of 650,000 Ordinary Shares of 5p each fully paid from Treasury. Following the issuance there will be 1,402,119,485 Ordinary Shares in issue (excluding the remaining 19,611,395 shares held in Treasury). These shares were issued for cash on 28 November 2017 at a price of 466.90p per share and at a premium to the prevailing net asset value.
Baillie Gifford & Co Limited
28 November 2017
Regulated Information Classification: Acquisition or disposal of the
issuer's own shares
Click Here for more Amazon Charts.
By Alyssa Abkowitz
This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (November 17, 2017).
BEIJING -- In its push into artificial-intelligence technologies, Chinese internet giant Baidu Inc. is entering the market for "smart home" products with an intelligent speaker and a personal robot.
The company, which is best known as China's leading search engine, announced at its annual Baidu World conference on Thursday that it will begin selling two home assistants -- similar to Amazon.com Inc.'s Echo -- that can execute commands such as playing songs or videos using voice recognition.
With its core search business reaching maturity, Baidu is looking to use its AI capabilities in new enterprises. Last year, a medical scandal cut into its advertising revenue and led to a management shuffle.
The company's Raven line of smart-home products, which will be sold in the Chinese market to start, is seen as a way to generate short-term revenue gains while more ambitious ventures such as driverless cars are being developed.
While Amazon and Alphabet Inc.'s Google have established a market in the U.S. for smart-home devices, China's tech firms are just now fielding such products. Earlier this year, Alibaba Group Holding Ltd. launched the Tmall Genie, a voice-assistant controlled speaker, and Tencent Holdings Ltd. announced a similar product called Xiaowei. Smartphone maker Xiaomi Corp.'s entry costs less than $50 and includes audiobooks and radio as content.
While the market for smart speakers in China is still unknown, analysts say many companies are jumping in to gain consumer data. By ordering merchandise or choosing songs online, users give device companies a wealth of data that can be used to offer additional products and services, said Kitty Fok, China managing director at consulting firm IDC.
Baidu's Raven H can hail a taxi, play a song or search for information on the company's search engine. The second product, Raven R, is a stationary robot that provides similar functions as the Raven H, but can also move on an axis, allowing it to dance along to music.
Unlike other smart speakers that are controlled only by voice, Raven H has a base with a detachable touch screen, allowing a user to move about the home and control the device directly. It will be available next month for 1,699 yuan ($257).
Baidu didn't announce the price for the Raven R, which will be available next spring along with a third smart-home product, the Raven Q.
Click Here for more Tencent Holding Ltd. (PC) Charts.
By Alyssa Abkowitz in Beijing and Chester Yung in Hong Kong
Chinese internet giant Tencent Holdings Ltd. continued its winning streak, reporting earnings that rose nearly 70% from a year earlier, driven by growth in mobile-gaming and advertising sales, particularly on the company's video-streaming platform.
Shares of the Shenzhen, China-based company have more than doubled since Jan. 1, raising its market capitalization to nearly $466 billion. Tencent also made headlines last week when it bought a 12% stake in U.S. social media company Snap Inc., becoming one of its largest shareholders.
On a conference call with investors Wednesday, Tencent President Martin Lau said the company saw an opportunity to acquire Snap shares at "a pretty attractive price" and said Tencent may look to do "something more strategic with them" in the future.
Profits handily beat Wall Street's expectations, reaching 18 billion yuan ($2.71 billion) from 10.6 billion yuan a year earlier. Revenues climbed 61% to 65.2 billion yuan from 40.3 billion yuan. The company reported after the close of trading in Hong Kong Wednesday, where shares closed down 1.3%.
Heavy spending on video content is starting to pay off for Tencent, which at the end of September was the No. 1 video-streaming service in paid subscriptions, according to data firm App Annie. Tencent now has more than 43 million paying subscribers, up from 20 million in November 2016.
The company also said revenues from video advertising grew 70% from the year-earlier period, which helped contribute to overall online advertising revenue increasing 48% from the year-ago period.
"While the video sector as a whole is still making losses, we will continue to invest in the long run," Mr. Lau said, adding that video is an important component of the firm's cross-media strategy.
Video-streaming is a hotly contested area for Tencent and its other tech rivals, Alibaba Group Holding Ltd. and Baidu Inc. Tencent and Baidu, particularly, have been going back and forth to woo paid subscribers with a mix of exclusive and licensed content. Mr. Lau said Tencent had made headway in expanding its young female user base in drama, the most popular genre, and in scheduling programming to optimize viewership.
The bulk of Tencent's revenues continued to come from games. Smartphone gaming revenues rose 84% from a year earlier, anchored by smash hit battle game "Honor of Kings."
The company's messaging, mobile-payment and social-media platform, WeChat, which is the most popular app in China, reached 980 million users at the end up September, up 16% from a year earlier.
Its other businesses, including mobile payments and cloud services, recorded revenue growth of 143% from the year-ago period. The company said payment volume from mobile payments in brick-and-mortar stores rose 280%.
Mr. Lau said overseas growth of WeChat Pay will be serving Chinese tourists, and that globally, the company is pursuing a "partnership strategy" with local players instead of competing with them.
On the heels of Tencent's successful spinoff of its online publishing business, China Literature Ltd., Tencent executives noted that as investee companies reach maturity, the company will look to make them go public but that homegrown businesses make more sense to "stay together so they can reinforce each other."
Write to Alyssa Abkowitz at [email protected] and Chester Yung at [email protected]
Scottish Mortgage offers an easy way of investing in high-tech growth companies such as Amazon, Facebook and three Chinese internet stocks. Although income from the shares is limited, its long-term record on capital appreciation is good.
Investors in Scottish Mortgage Investment Trust cannot say they do not know what they are getting. The trust reiterated its strategy in last weeks half-year figures: Scottish Mortgage is best suited to those who share its long-term approach to investing.
This is a conviction investor, willing to hold stakes for five years or more and with only 75 holdings, the top 30 accounting for 85 per cent of all assets and the top ten for more than half. Investors who have been in for the long haul can have little to complain about.
The net asset value per share rose by 17.5 per cent over the first half, while its share price rose by 15.4 per cent. It is not easy to find a comparator for a trust of this nature, but world equity markets did little over that period in sterling terms.
Over the five years to the end of September the total return was 222.8 per cent. Net assets per share were ahead by 193.1 per cent. A passive investor would have seen about half that total return.
Scottish Mortgage, after strong share price growth over the past couple of years, is the biggest quoted investment trust. Its stable of mainly high-tech investments have been selected because they can be expected to at least double sales over a five-year period.
The trust sold out of Apple, for example, the worlds biggest company, because the managers do not expect that sort of sales progress in future. Instead they are focused on disruptors such as Amazon, Tesla, the electric vehicle maker, and three Chinese internet companies: Tencent, Alibaba and Baidu.com.
The share prices in these businesses have been especially strong over the first half to the end of September.
About 13 per cent of the fund is invested in private companies, while there is the authority to take this to 25 per cent. Among these are Spotify, the digital music service with more than 60 million subscribers, and Airbnb, the online provider of accommodation. This gives access to early-stage investments that are not easily available elsewhere.
This is a significant advantage, offering the sort of returns that would generally only be available to private equity.
Scottish Mortgage believes the next growth area could be healthcare, through the development of personalised treatments and diagnosis. This explains the investment in Illumina, a San Diegobased business that develops products for gene sequencing.
There is the facility to buy back shares to keep the net asset value aligned with the share price. The trusts performance has tended to track that of Nasdaq, though it has outperformed the high-tech US market of late.
Only 4 per cent of Scottish Mortgage is in the UK, so its geographic diversification is another advantage. There is, perhaps surprisingly, a dividend investors have indicated they would expect some sort of income stream even if the main point in holding the shares is capital appreciation.
The payment has generally increased over the past three decades although this years payment is expected to be merely maintained, and the managers have indicated a willingness to make any future payments out of capital if necessary.
Scottish Mortgage will inevitably suffer if markets are in turmoil, but the shares offer exposure to growth tech stocks.
I agree that putting all one's eggs in one basket is not sensible. The conundrum is that until fairly recently SMT's holdings were (in my view) diverse enough that SMT in itself constituted a diverse investment. Now it has become much more of a technology trust, even though its stated objectives haven't changed. So it seems that either you continue to put confidence in the management, which has been justified so far, or decide that SMT is no longer the company you originally decided to invest in and look elsewhere.
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