Take a cold shower to clear your head.
Then read Balance's post #276.
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OK, I will go against the tide of thought, & state my opinion that a 9% discount to NTA makes this a reasonable investment.
I also see that they have started to do the decent thing & buy back their shares (increasing NTA per remaining share ) Just a pity it's on such a small scale so far.
Suggested reading
http://www.nzherald.co.nz/business/n...ectid=11723746
Excerpt : "Other examples of the worship of false gods abound: the NZX listed investment companies run by Fisher Funds long ago instituted a policy whereby each quarter the funds give shareholders back some of their capital.
Directors label this return of capital a dividend thereby giving investors the warm fuzzies. You can however see from the accounts of the Marlin Global Fund, for example, that most of the dividends are actually a return of capital.
For example Marlin Global pays a dividend of 6.88 cents per share which on a share price of 79 cents is a dividend yield of 8.7 per cent.
This of course looks fabulous to the naive yield crazed investor but the reality is that all of this "dividend" is actually a return of the capital of shareholders.
According to the Marlin profit and loss account for the year ended 30 June 2016 dividend and interest income of $966,000 doesn't even cover operating expenses of $1.65 million.
This latter figure is made up of a management fee of $880,000 and various other operating costs.
There is no actual earnings, in the conventional sense of the term, available to fund a dividend. One could take this capital distribution model to its ultimate conclusion by paying out all of the company's capital to shareholders thereby delivering a fabulous yield of 100 per cent."
FOOLS AND THEIR MONIES ARE ALWAYS PARTED.
https://www.nzx.com/companies/KFL/announcements/300392
The performance fee paid to Fisher Funds was $931,653 plus GST.
Sp as at 1 April 2016 - $1.32 (NAV - $1.3652)
Sp as at 31 March 2017 - $1.29 (NAV - $1.3854)
Dividends paid over year - 11.16c
So return = 8.16c = 6.18%
How is there an out performance (against Bank bill rate + 7%) calculated to obtain the performance fee if you are a unit holder?
Heads they win, tails you suck the lemon.