Tradeka no longer allows me to subscribe to new yield shares (tuotto-osuus), but since my better half just made an investment in that instrument, I asked out of curiosity where we stand with the serial numbers of the yield shares. Apparently, they are currently around 158k. The total size of the offering is 180k yield shares (€18 million), so this investment opportunity will close in the coming months unless Tradeka’s management launches a new offering.
Of the other options available to me, Tampereen Seudun Osuuspankki used to organize yield share offerings at best twice a year. I have participated in one of them. The most recent offering started in January 2022, but it was suspended after just over a week once it was fully subscribed. I would gladly invest in that target as well, if only it were possible.
I don’t think this investment opportunity will be closing due to the €18M limit being reached anytime soon. A significant portion of that “running serial number” of profit shares has likely already been redeemed back to investors. I’ve personally had the maximum amount invested there once before when the yield was 5.75%, and I had another larger pot there as well. All of them have since been redeemed.
But those terminated profit shares have been canceled and have not returned to the market. So, the subscription amount of 18 MEUR is the threshold, even though Tradeka naturally no longer holds that entire sum at that point.
“Hi, we can only issue shares for subscription up to that €18M, and whether a share is terminated or not does not affect this; if we want to offer this opportunity after that, a new share issue decision (antipäätös) is required.”
I’m starting to feel some FOMO regarding Tradeka’s yield shares, which are being snatched up as we speak!
I still have a long way to go to reach the maximum investment, as I’ve only been putting in a hundred or two every now and then. I think I’ll go ahead and top it up now.
Tradeka’s business operations have faced major challenges since Ajovarma lost the driving test contracts outside of Helsinki and Espoo. Last year, there were over 100,000 Category B driving tests, the majority of which went to a new player. As a result, statutory change negotiations (YT-neuvottelut) are underway, appeals have been filed, and significant changes for the entire operation are likely ahead.
Restel’s restaurants are still not pulling in crowds, yet rapid expansion continued in Q1. At this rate, losses will likely continue for a long time.
The most important side, the investments, also dipped slightly in Q1, but there has likely been a significant recovery already in Q2 as Trump’s antics lose their credibility.
So, there is nothing that would jeopardize the payouts according to the return targets for the coming years, which last year amounted to less than one-tenth of a percent (promille) of the Tradeka-sijoitus capital alone.
I’ve always viewed Tradeka in a way that they have a good 600 million euro investment portfolio, the returns of which are then squandered on their own operationally dismal business. And that business doesn’t really excite me much from an industry perspective either.
But despite that, the cooperative’s wealth is growing at a slow, steady pace and risk management seems to be in order. Clearly, something has been learned from the collapse of the “Red Capital” (punapääoma).
Can anyone explain how the interest on Tradeka’s yield shares (tuotto-osuus) is calculated? Does the interest accrue on the so-called daily balance right from the start of the investment, or is the interest paid based on the holdings at the turn of the year, similar to S-Group’s cooperative capital interest?
Interest is paid based on the number of days starting from when the profit shares (tuotto-osuudet) are registered. Registration takes 1–3 business days from the payment. If you redeem your profit shares, interest is paid until your investment has been returned to you. Since redeemed profit shares are paid out at the end of the following calendar year, profit shares are not an investment vehicle for traders.
