KFL - discount to diluted NAV

[Snow Leopard]

Ok, I suck at maths but when I have more time I will try to work this out.

Let's assume I invest $5000 - split between the top 5 companies in the KFL portfolio. What would the total dividend payout be, compared to the total KFL payout, for the same amount invested? Assuming a cash dividend, not DRP for the purposes of the exercise.

OK. $1000 in each, average gross div rate is a shade over 2%, so $100 less tax.
But I would suggest this is immaterial to the discussion.

[mfd]

What I’m asking is … would the total annual dividend be exactly the same if I held $5000 split between all the companies in the KFL portfolio, as it would if I had $5000 invested in KFL?

Im confusing myself now, so will go work and work this all out later.

The dividend of the individual holdings would be much smaller than the KFL dividend. Holding through KFL means they sell somewhere between 1-2% of the shares each quarter to make up the difference and fund a larger dividend. You would be able to do the same with individual holdings if you wanted, with whatever timetable and magnitude you wanted.

[Snow Leopard]

What I’m asking is … would the total annual dividend be exactly the same if I held $5000 split between all the companies in the KFL portfolio, as it would if I had $5000 invested in KFL?

Im confusing myself now, so will go work and work this all out later.

No. KFL get the same divvies you would get owning the shares direct but they bulk it up by selling some of the holding if necessary. Which you could do.
If you go for the DRiP with KFL then it is a weird merry-go-round.

[SPC]

I doubt very much you could match the return after trade fees and personal time.
The bulk up to 8%pa of nta is also capital return often so that portion is tax free. I expect they top off and top up all the time, couldn't be bothed trying this myself.

[ronaldson]

At last the Warrants listed as KFLWG have expired and we should have an announcement soon if there has been any take-up (there shouldn't be given the exercise price, but there often are those who throw their money away).

Importantly that now clears the way for another warrant issue, which it is to be hoped the Board will initiate very soon given the share price fall over the last 12 months. if so the warrant price in the current market circumstances would be interesting. Something to look forward to just now.

KFL trading at $1.37 currently cum a 2.86c dividend paid next month, with the last NTA about $1.38 per share.

[ronaldson]

There you are. 133,568 warrants exercised despite publicity not to do so, although this is a lesser number than I anticipated. All that can be said is that it is a small win for existing holders, albeit hugely uneconomic for those who did so.

But bring on the next warrant issue.

[alokdhir]

https://www.nzx.com/announcements/402833

Only 133568 converted @ 1.90 ...wow ...someone paid extra $70,000 to other KFL holders !!!! Thanks for the gift mate

[SPC]

Anything to boost NTA is good with me 😉

[alokdhir]

KFL doing well these days ...NAV is outperforming NZX50 by big margins ....Voting vs Weighing effect finally coming to front

Its portfolio of MFT / IFT / FPH / SUM / AIA is very well positioned for market recovery when ever it will happen . Now SP following NAV at a small discount which is also positive

Very happy to get into it big time during its last forays towards 1.25 for sustainable and growing yield

[alokdhir]

Latest NAVs are showing that BRM / MLN still at 8% premium while KFL is almost at NAV ...maybe people ready to still pay premium for offshore diversification ....