Low yields.

[JeffW]

Excellent question Nor. Here is the link to the information page on the NZ Bond trust

https://smartshares.co.nz/types-of-f...sh/nzbondtrust

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!

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 chart, the unit price on 8th 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 8th 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 8th August 2023 unit price of: 18.3c/$2.26737= 8.08%

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

The calculation is much easier than that - it's just the dividends paid in the last 12 months - from NZX (1.202+1.218+1.09+1.239) = $.0475 / $2.869 share price to give 1.658% yield with is the same as on the NZX site. It is of course a 12-month historic yield, not a forward looking yield.