KFL - discount to diluted NAV

[Ohdoyle]

Had a long hard think about this (and BRM and MLN) and I just can't justify paying the premium.

I think I will DIY it for now and see how and feel in a couple of years.


While I accept a small premium could be justified for some investors due to the PIE status it doesn't justify a 8% one overall to my mind.

Plus if someone is wanting the PIE status then why not invest in a managed fund direct. I realise there are advantages to a closed listed fund but I don't see them justifying that sort of premium.

Only time will tell if I make the right decision, but if KFL returns closer to NAV then I'll have another look at them then. In the meantime Id like to think that with the savings on fees and the NAV Premium I should be able to outperform them managing it myself. Only time will tell of course.

Noting that for the situation I was looking at (Income investing for my retired mother) there is no real tax advantage to the PIE status.

I may look at some of the other options like TCL or HFL to get some international exposure. But in the meantime the premium moves closer to say 2 percent or so I can't see this one as being for me.

[alokdhir]

Whats the buzz on KFL ? Why suddenly so much interest in it ?

Any news about new warrant issue ? Or people just preparing well ahead

[Grimy]

CNU010 paying back $400,000,000 tomorrow already looking for a home?..........

[alokdhir]

Why KFL lagging behind its other cousins BRM and MLN in premium over NAV department ...after all it also has all the qualities and features of other 2 ??

[Grimy]

I think the real question is why are BRM and MLN priced so far over their NAV.........I don't want KFL to get that far ahead of its NAV.

[SPC]

I'm putting it down to new entrants. Maybe the sharsies crowds or similar cohort. Div yields at 4 to 5% is all they read.. Size of trades suggests same.

[Sideshow Bob]

I'm putting it down to new entrants. Maybe the sharsies crowds or similar cohort. Div yields at 4 to 5% is all they read.. Size of trades suggests same.

Or probably the PE stated on the NZX website at 7.05.

[justakiwi]

Or maybe they’re just selecting three very well managed companies which afford them global and sector diversity. Three companies which are well established and provide a way for them to invest in many companies without having to manage them themselves. Three companies that pay decent dividends, have a DRP option, regular warrants issues - all of which helps them grow their holdings without any additional capital expend if that’s what they prefer. An alternative option to ETFs perhaps.

It puzzles me how people get so agitated by “unusual” share price events, when we all know that SP is next to meaningless. The market sets the SP. Why does it bother you? If you have a large holding - it’s an opportunity to cash out a few $ to use elsewhere if you wish. if, like me, you’re a long term holder, you just watch with interest but know that things will change, as they always do. But from a long term perspective, it seems to me that the Fisher trio will be a positive investment for those of us who hold.

[Sideshow Bob]

I understand the ease and advantages of holding the different Fisher Funds, and have been a holder in the past. It is actually pretty easy to largely replicate these holdings.

Take KFL for example, which is easily their biggest fund. All NZX holdings, their biggest 5 holdings currently represent 64% of the fund and the rest of their holdings are here. Investor Centre | Portfolio Holdings | Kingfish Limited NZ

With the advent of Sharsies or other low-cost platforms makes it easy to have a portfolio largely mirroring this. Of course KFL are a little more active, buying/selling at different times - and for example with A2 they have sold down over recent months. But hey, you've got to earn your management fees somehow.

A cynic would say about the dividends not really being dividends (at least some of the time through its existence) but more returns of capital gains. Then you have the warrants to keep the money coming back in that has been paid out......or this this just being cynical??

They are another option for investment, good track record, PIE status, diversified, easy etc.

JK - I don't know if posters are "agitated" as such by the share price. Just probably puzzled why someone would pay $2.02 for something worth $1.81.....that they can go out and buy for $1.81.

[justakiwi]

I get where you re coming from and I agree - I wouldn’t pay $2.02 for them. But on any given day, they are worth what the market is prepared to pay for them. Which is why I say SP means very little. Today’s SP is really only relevant if you are planning to buy or sell today. If you’re not intending to do that, the SP means nothing.

SP doesn’t indicate a “good” company or investment. It simply reflects what buyers and sellers are choosing to do on the day.

JK - I don't know if posters are "agitated" as such by the share price. Just probably puzzled why someone would pay $2.02 for something worth $1.81.....that they can go out and buy for $1.81.