When money is cheap, assets are not (eventually). In the meantime, make hay while the sun shines.
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If you sold the head shares and bought the underlying component stocks (with 30,%gain as calculated) the question of dividends then applies. Do the divs of the components add up to the 8,% pa NTA-referenced head share div or less (try your own calcs) and of course the PIE tax benefit disappears as for non pie divs and tax compliance admin surfaces as well...20-30 non pie stocks versus one single pie stock....no thanks
Which of course would be totally unrealistic given the complexity cost and time required. So why would you bother.
Actually 'distribution' is the terminology used on the pie tax statements and most other corporate comms I think you'll find.
Sure, much easier to leave it to the managers if you need the high regular income, and to pay for the privilege.
From my readings around the area of financial independence, there is a rule of thumb (generally considered quite optimistic these days) that you can draw down approx 4% from your lump sum of invested capital each year and reasonably hope that it will survive your 30-40 years of retirement. I would be interested to see the Monte Carlo simulations of the survivability of a fund forced to pay out 8% of funds each year over a few market cycles.
Have we not had a few market cycles since each of these funds listed?
The dip last year was huge. As the was the recovery.
Still 'distributing after all this time.
No, the funds haven't experienced a sustained down market that lasts years yet. I believe they were formed after the GFC. A down quarter isn't so bad, but spitting out dividends for a couple of years while the market is down, funded by selling shares at rock bottom prices, will be interesting.
Wrong. KFL listed late 90s from memory.
BRM 2006 MLN a year or so later.
Plenty of ups and downs over that time
Still around and doing well.
But I get back to my original point. Don't get hung up about what's under the hood. Just drive the car. Like any other share. Buy it when you like it. Sell it when you don't.
KFL listed in March 2004 only and its quarterly 2% of NAV dividend policy started from 2010 only . It had seen some rough times but not sustained bear markets as now that are not allowed to happen by Govts and Central banks ...that has brought us to negative rates etc . But I do understand your point that in sustained downtrend it will be cannibalising its portfolio only for dividends if that situation ever arises .
April 19th Marlin warrant announcement with record date of 14th May ...SP from 1.34 on 14th April to 1.61 on 4th May while NAV from 1.24 to 1.25 only . Means new warrant issue added about 27 cents to SP while NAV increased only 1 cent
These are the facts as per NZX website ...One can draw his/ her conclusions . Expected exercise price is 1.28 minus 10 cents dividend = 1.18 ..next May
This boost in SP to get 1/4 FOC warrant becomes self fulfilling to increase the difference between SP and expected exercise price thus boost to expected warrant price on listing ...so more like dog chasing its own tail ...lol
Warrant should list around 20 cents IMHO ...
bump bump bump
bump bump bump
bump bump bump
bump bump bump
thanks for the link. Sorry for the multiple posts but I'm stuck in quarantine and the internet is slow....
Anyway, small arbitrage opportunity with the warrants .. exercise price $1.28 heads are $1.60 warrants 29.5 and with a dividend of 2.3 cents, they should be around 33 cents plus any time value U put on them.
From Bloomberg:
Alibaba is 7% of the Marlin Portfolio.Quote:
Few people could have predicted the downward spiral for Alibaba Group when founder Jack Ma delivered his now-famously blunt criticism of China’s financial system. Yet one year on, the technology titan has lost a whopping $344 billion in market capitalization, the biggest wipe-out of shareholder value globally.
Marlin says of Alibaba:
And in their September newsletter are still positive about the prospects.Quote:
Alibaba is expected to grow in excess of 25% per annum over the next few years.
Recent NAV's
11/11 1.2686
18/11 1.3158
25/11 1.2663
Seems very strange ....
WOW this whole Kingfish group is losing its halo.
http://nzx-prod-s7fsd7f98s.s3-websit...549/361494.pdf
Adjusted NAV down 3.6% for the last 3 months v market index down just 1%
Underperforming for the year too but trading at a whopping 27.7% premium to NTA :eek2:
Reality check on that premium to NTA coming ?
Meta down 22% in after hours
That will a few percent of MLN NTA if stays down
And PayPal collapsing as well
They've also had a really shocking time recently with Ali Baba and Tencent holdings too.