KFL - discount to diluted NAV

[Sideshow Bob]

there funds are massive fee generating machines , look at the trend up in fee's lol. complete opposite is the performance lol. congrat's to management on such stellar performance

The version knocked together by Cameron Partners, and obtained by this column, says Fisher Funds is expected to make $NZ200 million ($187 million) in management fees alone (excluding performance fees) and circa $NZ100 million EBITDA this financial year. That’s nearly triple the $NZ70 million total revenue recorded in the 2017 financial year

https://www.afr.com/street-talk/came...0240311-p5fbgg

Much of this $200m would be ex Kiwisaver and other funds.

Kingfish for example at 1.25% gross, market cap of $429m - so about $5.3m (not arguing that this isn't good money). Barramundi and Marlin under half the size of Kingfish.

In 2022 Fisher had over $14.6b in Kiwisaver funds under management.

Still a good business - how many companies on the NZX don't have a revenue of $200m, and even less make $100m EBITDA.

Should list......

[bull....]

Much of this $200m would be ex Kiwisaver and other funds.

Kingfish for example at 1.25% gross, market cap of $429m - so about $5.3m (not arguing that this isn't good money). Barramundi and Marlin under half the size of Kingfish.

In 2022 Fisher had over $14.6b in Kiwisaver funds under management.

Still a good business - how many companies on the NZX don't have a revenue of $200m, and even less make $100m EBITDA.

Should list......

1.25% is horrendous in this day and age. looks like big s/h selling out of fisher

[777]

1.25% is horrendous in this day and age. looks like big s/h selling out of fisher

Looks like??? That has been mentioned regularly over the last 6-8 months. Mrs Fisher is the suspect.

[777]

Buy back started.

Shares being issued in the DRP at 1.1848 and buying them back at 1.22. Never seen the logic in this.

[Rawz]

Buy back started.

Shares being issued in the DRP at 1.1848 and buying them back at 1.22. Never seen the logic in this.

As long as they are buying under NAV its good buying.

[ronaldson]

If they only activate the buy back when the discount to NAV exceeds 6% then with the last announced at $1.3024 they can only purchase at $1.22, as $1.23 doesn't meet the criteria.

And presumably they do not buy in front of others bidding at $1.22 as they would wish to remain at the back of the queue? A sort of buyer of last resort but underpinning the share price at that figure, now that they are obviously in the market and presumably with free cash to allocate?

[alokdhir]

Buy back started.

Shares being issued in the DRP at 1.1848 and buying them back at 1.22. Never seen the logic in this.

DRP is to ONLY encourage people to opt for it ...as its better way to increase corpus then warrants ...rewarding loyal holders and increasing corpus ...while BUYBACK is more capital investment decision ....so both are different

[ronaldson]

I have posted previously about selling sufficient shares each quarter once they go ex dividend to yield a sum equivalent to the cash dividend, whilst still participating in the DRIP programme and receiving shares at the discount rate.

I completed this exercise with two holdings managed by me in relation to the current dividend by selling sufficient on market after the ex date at $1.17 (allowing also for the Jarden trade fee of $29.90 incurred ) to yield cash equal to the dividend, and now that the DRIP price is ascertained it is evident one account is 51 shares better off (once allotted on 15 December) and the other 112 shares better off. In both cases with a T + 2 settlement the cash is received days before the actual dividend payment date.

May be only a minimalist gain but it is available four times a year. You need quite a number of shares as a holder for this to be reasonably practicable - say 100k or so - but it doesn't take much effort and is relatively low risk given the 3% discount rate.

The above post is from 8 December. Now that the DRIP price for the current dividend is known I can calculate when allotted one account is 65 shares better off and the other 147 this time around.

I sold enough shares on market at $1.24 at the morning open when KFL went ex dividend and have had the funds since the T+2 settlement date, whereas the actual dividend has still yet to be paid.

So it is repeatable, although I have not considered it for other shareholdings. You need quite a lot of shares and a deep DRIP discount like KFL's 3%.

[winner69]

Market saying Warrants are almost next to worthless at moment

Only a few months to go

What needs to happen alokdhir for us to get richer

[alokdhir]

Market saying Warrants are almost next to worthless at moment

Only a few months to go

What needs to happen alokdhir for us to get richer

Pretty much a miracle with MFT / FPH/ IFT reporting before warrants go phuk ...

Base case is KFL can have nav of $ 1.35 before warrants expiry and SP maybe hovering just over exercise price of $ 1.26 ...so 2-3 Cents worth still possible if one gets lucky otherwise market knows best