Pie Australasian Dividend Fund

[Lizard]

I just received the Pie Funds newsletter (http://www.piefunds.co.nz/pdf/newsletters/PieFundsNewsletterAugust2011.pdf) and thought a few investors might be interested in the new Australasian Dividend Fund that they are planning to open on 16 September.

I admit, I'm a bit of a fan of Pie Funds - partly because they're homegrown and partly because they've been so successful with their first fund - the Australasian Growth Fund - which has managed 80% growth in the past 4 years. They are now closing the Growth Fund to new money so that they can keep it small and nimble and opening a Dividend Fund, which is expected to make twice yearly distributions.

I notice I've been asked for a lot of advice lately from those around me and have been scratching my head a bit as to how to help. It seems it's never been harder for those with money saved to keep it safe and yet earning an income, while worrying about future inflation and global economic crises. Although the Dividend Fund will have equity risk and no more guarantees than other funds, it seems to me that with Pie Funds record, it might be a good way for investors who don't want the hassle of direct investment to diversify a little.

[Toulouse - Luzern]

Hi Liz,
The Pie Fund attracted my interest 34 weeks ago.
Mike Taylor seems an efficient and competent operator.
I was considering investing in his Pie Fund as my Fisher Fund holdings were back to par and my risk appetite returning and Pie Funds was a top performer.

I set up a Pie Fund portfolio watch list. Since then the market in general went down. I do not know the % in each stock and I only updated the list once as Mike made buy and sell decisions.

There were 8 stocks in my Pie Funds portfolio watch list and in 34 weeks the watch list lost an average of 18%. Coincidently about the same as my loss in the ASX competition. Looking at the current newsletter I can see that Pie Funds has actually only lost 5% in the last month and 5% in the last 3 months. The significant difference is that Mike has been actively managing the portfolio. Only 3 stocks remain of the 8 in my original watch list and another 8 have been added by Mike. This shows the positive effect of managing a portfolio exiting losers and replacing them.

In the newsletter Mike says "We currently have a net market exposure of 58%. The fund has a high cash position and is short the market via futures as a hedge to reduce downside volatility." So Mark is placed to re-enter when the time is right.

If I am going to enter the original Pie Fund before it closes for new funds I have the next 12 days or so to do so.

I have no present personal view on the Dividend Fund but there is a longer timeframe to enter.

[Lizard]

I think the Dividend fund will suit a different group of people - particularly those investors who rely on income from assets, but have enough capital to be able to leave some in equities.

The Growth Fund has been a great flagship for Pie, but better suited to those who are still building a retirement nest egg, or the few very wealthy whose investments are giving them significantly more income than they need. There is probably a dwindling group of ordinary New Zealanders in the latter category with current low returns!

It would not surprise me if Mike also wrings quite a bit of growth out of his dividend stocks - he has an eye for good stocks. Plus the timing for this fund launch surely has to be better than when he started the Growth Fund (it couldn't have been much worse, starting in Dec 2007).

[Lego_Man]

I find it interesting that he's closing the fund at 25 million.

With a 1% management fee that only gives him a gross revenue of 250K. Sure there will be performance fees accrued as well but after all his overheads and expenses it doesnt leave a lot for him in the back pocket.

Although i suppose it is pretty much a one man band.

[Lizard]

First time I've ever been sent a Christmas present by a fund - "Outliers" by Malcolm Gladwell. Will add it to the summer reading pile! :)

[Joshuatree]

Is that because he thinks youre a bookmark? :) . MTU his only/core stock, do you know if the fund is sitting mostly in cash atm?

[Lizard]

From the newsletter, he says only 25% invested for this fund. So far, has only disclosed MTU as a holding - doesn't want the likes of us jumping on his coattails until set :cool:. Although, apparently he'll kiss and tell if asked by holders or prospective investors (I haven't asked).

[Lizard]

Interview between Mike Taylor and Vaughan Bowen, former CEO of MTU.

http://www.youtube.com/watch?v=NjsrcIQPckE

I understand there could be an upcoming series of these with an educational/investing type slant. :cool:

[Lizard]

Another video from Mike - this time interview with Jamie Pherous from Corporate Travel.

http://www.youtube.com/watch?v=fTFhd0Rq9KQ&feature=youtu.be

Never looked at CTD myself, but Pie seems to be doing okay with the funds I've put in the Div Fund, so will keep cheering them on. :cool:

[Lizard]

My investment in Pie Australasian Dividend Fund is now up 10% in 6 months... not bad for a yield fund!

Also, well done to Mike for hitting the 100% return mark on the Growth Fund after just 4 years, 2 months during a market that has kept most fund managers sweating.

...Give the man ACC and the Cullen Fund to look after, I say - he'd have NZ's current account into a surplus in no time :D

[westerly]

My investment in Pie Australasian Dividend Fund is now up 10% in 6 months... not bad for a yield fund!

Also, well done to Mike for hitting the 100% return mark on the Growth Fund after just 4 years, 2 months during a market that has kept most fund managers sweating.

...Give the man ACC and the Cullen Fund to look after, I say - he'd have NZ's current account into a surplus in no time :D

Gee Lizard, as someone with a small investment in both funds I am very happy letting Mike carry on with what he is doing. Giving him the Acc or the Cullen fund would be far too stressfull for him given the media attention they generate when the market falls.

Westerly

[Lizard]

I just received the Pie Funds newsletter (http://www.piefunds.co.nz/pdf/newsletters/PieFundsNewsletterAugust2011.pdf) and thought a few investors might be interested in the new Australasian Dividend Fund that they are planning to open on 16 September.

I admit, I'm a bit of a fan of Pie Funds - partly because they're homegrown and partly because they've been so successful with their first fund - the Australasian Growth Fund - which has managed 80% growth in the past 4 years. They are now closing the Growth Fund to new money so that they can keep it small and nimble and opening a Dividend Fund, which is expected to make twice yearly distributions.

I notice I've been asked for a lot of advice lately from those around me and have been scratching my head a bit as to how to help. It seems it's never been harder for those with money saved to keep it safe and yet earning an income, while worrying about future inflation and global economic crises. Although the Dividend Fund will have equity risk and no more guarantees than other funds, it seems to me that with Pie Funds record, it might be a good way for investors who don't want the hassle of direct investment to diversify a little.

One year on, dividend fund is worth $1.2977 per unit and has paid out a 2cpu dividend - i.e. nearly 32% return in year one. Spectacular, given that this is meant to be more conservative than the growth fund!

Last newsletter said Mike was not far off closing the Dividend Fund (as he previously did to the Growth Fund when it reached $25m). He has indicated that at this stage, he is not expecting to start any new funds.

While past performance is never a guarantee of future success, I think Mike deserves some accolades for what he has achieved on behalf of NZ investors in both funds. The decision to cap funds at such a low level seems courageous and is likely of far more benefit to investors than to Mike. Well done Mike and thanks for the stellar performance. :)

[777]

I have just put in some more money because of the coming closure. I am hoping he does start another fund though. Perhaps an international one this time. Here's hoping.

[Lizard]

I have just put in some more money because of the coming closure. I am hoping he does start another fund though. Perhaps an international one this time. Here's hoping.

I asked for an international one too...

[CJ]

I asked for an international one too...International would need a different manager as he is focused on analyalising Australasian shares. International just seems too wide for a small fund as well.

I would think another complementary Australasian fund so his research on the existing two can be leveraged. Maybe a short term opportunities one (ie. more trading than the growth).

[777]

This is what was written in the last newsletter.

"There will be no Growth Fund or Dividend fund #2. Once we are full, we are full."

I read that as no further Australian Funds. I hope you are right CJ. They will have very little to do in the office if there are no additional funds to work on.

[CJ]

This is what was written in the last newsletter.

"There will be no Growth Fund or Dividend fund #2. Once we are full, we are full."

I read that as no further Australian Funds. I hope you are right CJ. They will have very little to do in the office if there are no additional funds to work on.

A total of only $50m + growth is a very small place to stop so I assume there will be another fund, it will just have another area (International) or another strategy (not Div or long term growth which is why I guessed at some form of alternative strategy/hedge type fund).

Saying they will have nothing to do would be taking it a bit far. Sure they wont be actively chasing more funds but I dont know whether they do much of that at the moment (the returns sell itself). They do however have to keep analyaising lots of Australasian companies to continue hitting the same return they have been achieving. It cant be easy to get those figures or they would all be doing it - the small funds must help as he couldn't move in and out of mid-caps as easy if he had $250m+ under management.

[skid]

Does anyone know off the top of their head what are the tax issues with this for Kiwis[dividend fund]?

[CJ]

Does anyone know off the top of their head what are the tax issues with this for Kiwis[dividend fund]?I assume it is a PIE so it will be the same as every other Australians share PIE.

Taxable on dividends, capital gains not subject to tax. Distributions will be PIE income so exempt (tax paid) provided you are an individual and you declared the correct rate.

[stoploss]

I just received the Pie Funds newsletter (http://www.piefunds.co.nz/pdf/newsletters/PieFundsNewsletterAugust2011.pdf) and thought a few investors might be interested in the new Australasian Dividend Fund that they are planning to open on 16 September.

I admit, I'm a bit of a fan of Pie Funds - partly because they're homegrown and partly because they've been so successful with their first fund - the Australasian Growth Fund - which has managed 80% growth in the past 4 years. They are now closing the Growth Fund to new money so that they can keep it small and nimble and opening a Dividend Fund, which is expected to make twice yearly distributions.

I notice I've been asked for a lot of advice lately from those around me and have been scratching my head a bit as to how to help. It seems it's never been harder for those with money saved to keep it safe and yet earning an income, while worrying about future inflation and global economic crises. Although the Dividend Fund will have equity risk and no more guarantees than other funds, it seems to me that with Pie Funds record, it might be a good way for investors who don't want the hassle of direct investment to diversify a little.

Owe you a beer for this.Only got in around March but this has been very impressive. Best thing I ever did was put some cash in this for my children. So much easier than trying to invest safely for them myself.
Cheers.

[Lizard]

Owe you a beer for this.Only got in around March but this has been very impressive. Best thing I ever did was put some cash in this for my children. So much easier than trying to invest safely for them myself.
Cheers.

Good to hear someone also enjoying this one.

Think Mike is pretty close to full on both funds now... I will have to stop mentioning them to everyone.:ohmy:

[JPW]

I'm rather gutted I missed out on getting into the Growth Fund. I was going to invest some funds in a PIE February next year. Based on my stage in life a dividend fund isn't the most suitable, albeit I'm sure Mike and his team will achieve decent growth.

Lizard I wish I knew about this earlier...

From the looks of it the Dividend Growth fund is still open for investors.

I've taken this from the investment statement: "The PIE Australian Growth Fund has been 'soft closed' and will not be accepting any further investments except by invitation of the manager".

Might have to send a nice email to Mike requesting an invitation ;)

[stoploss]

I'm rather gutted I missed out on getting into the Growth Fund. I was going to invest some funds in a PIE February next year. Based on my stage in life a dividend fund isn't the most suitable, albeit I'm sure Mike and his team will achieve decent growth.

Lizard I wish I knew about this earlier...

From the looks of it the Dividend Growth fund is still open for investors.

I've taken this from the investment statement: "The PIE Australian Growth Fund has been 'soft closed' and will not be accepting any further investments except by invitation of the manager".

Might have to send a nice email to Mike requesting an invitation ;)

Might be a struggle reading this today if you are not already in... http://www.piefunds.co.nz/wp-content/uploads/2012/12/Pie-Funds-Newsletter-November-2012.pdf

[ratkin]

Just read the newsletter , suprised they have shares in Ecoya , obviously have a higher opinion of them than myself

[JPW]

Just read the newsletter , suprised they have shares in Ecoya , obviously have a higher opinion of them than myself

I was thinking the exact same thing.

[Joshuatree]

I hear PIE is running a share tip comp next year also, trip to see warren buffet the prize.

[CJ]

I hear PIE is running a share tip comp next year also, trip to see warren buffet the prize.Saw that in the Herald but not on their website yet. Weird in that it seems to be a stock Tip as opposed to a stock Pick competition. Are they using it as stock screening so they know which companies to review next?

[Joshuatree]

Haha yes for their possible new micro stock fund next year.