Smartshares NZB New Zealand Bond Fund: 12m return 07-08-2023
Excellent question Nor. Here is the link to the information page on the NZ Bond trustOriginally Posted by Nor
https://smartshares.co.nz/types-of-f...sh/nzbondtrust
(Edit 15/08/2023): The above web-page reference is dynamic and appears to be updated daily. This means that some of the numbers referenced in this post will no longer correspond to the numbers on that page).
If you go down to the 'portfolio characteristics' section, that shows a Bond Yield of 5.66%, for an average yield duration of 3.44 years. Fund charges at the top of the page indicate the 'annual fee' is 0.54%. So I would expect the gross return to unit holders to be something like:
5.66% - 0.54%= 5.12%
Yet historical gross dividend yield is a pitiful 1.66% ('Fund Details' top of page). Something is not adding up here! (Edit: see post 5 for the answer to this)
Returns for the year, after fees but before tax, were 1.78% over the last twelve months (as listed under NTA unit performance graph). According to the one year interactive chart, the unit price on 8th August 2022 (Actually the price for the trading day before the weekend which was 5th August 2022) was $2.99272. That means the value to unit holders one year later including distributions as at 8th August 2023 must be:
$2.99272 x 1.0178= $3.05055
The unit price on the interactive chart dated 8th August 2023 (actually the figure for the NTA on 7th August 2023) was $2.86737. The difference, which must be the distributions over the last 12 months, must therefore have been:
$3.05055-$2.86737=$0.183180, or 18.3c.
18.3c gives an historical gross yield based on the 7th August 2023 unit price of: 18.3c/$2.86737= 6.38%
That is very different to the 1.78% gross return declared. Would appreciate if you could double check my maths Nor. But I agree with your sentiment and expectations which do not appear to have been met.
SNOOPY
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