KFL - discount to diluted NAV

**Rawz** · 21-03-2024, 09:30 PM

You two are saying the same thing lol

**alokdhir** · 22-03-2024, 07:32 AM

Originally Posted by Rawz

You two are saying the same thing lol

No Rawz U didnt get it right ...he says if KFL buys back shares at huge discount to NAV and passes them as DRP stock then it doesn't help boost NAV as they not being cancelled ....while I say they are passed on in lieu of NEW DRP shares thus helps keeping overall numbers down so it helps boost NAV ...that was the main point I made in my initial post to which he objected that nothing cancelled so no boost to nav ...in reality its some cancellation as they didnt issue new shares but passed stock bought at cheaper rate instead of issuing new at full nav ...so it DOES help boost nav

I agree that effect is so minuscule that it doesn't matter ...but then he started teaching simple maths ...lol

**alokdhir** · 22-03-2024, 07:49 AM

Now to serious business ...Bull says NAV will keep depleting due to dividends payout from capital .

1. Only 60% cash is paid which comes mainly from cash dividends they receive ...1% shortfall is to be covered per annum via stock sales ...little more DRP participation will diminish that also

2. As per my spreadsheet yesterday's NAV ex dividend reached AGAIN $ 1.324 and it still has lots of time to pay next divvy ...while market has been pretty much stagnant ...so dear Bull it can be done if u have a WELL managed portfolio even on NZX ...while enjoying the safety of a fund with its other enormous benefits like tax and regular income or discounted DRP etc ...free lunch at AGM is added perk which Mr B likes a lot

**bull....** · 22-03-2024, 08:23 AM

3% roughly new shares issued in yr 23 320m compared to yr 22 320m so this dilutes nav

37m in div's paid out only 8m received in div's from companies owned

4m needed to pay management fee's

where the rest of income come from every body

**alokdhir** · 26-03-2024, 05:15 AM

Latest NAV as per my estimate is $ 1.343 ...SP $ 1.22 ...DISCOUNT 9.2% !!! Wow great opportunity to get into top stocks at 9+% discount

When MFT / IFT also joins the party like FPH then NAV can get further boost ahead ....my base estimate of $ 1.35 NAV after June divi seems easily achievable

**alokdhir** · 26-03-2024, 05:45 AM

UPDATE on KFL performance YTD

NZX50G YTD = + 2.87 %

KFL NAV including paid divi YTD = + 4.73%

ASX200 Index YTD = + 2.41 %

BRM NAV including divi paid YTD = + 6.9%

SP KFL YTD = + 2.73%

SP BRM YTD = + 2.01%

IMO SP will improve or there is scope for improvement when sentiment improves thus discounts will narrow to more normal levels of 1-3% ...

Double benefits possible ...navs goes up with markets and discounts narrowing

**alokdhir** · 27-03-2024, 12:40 AM

Read a post on other channel about LICs by FM ...

His main negative about Fisher funds is high management costs ...maybe he was more MLN specific as compared MLN performance with VOO returns etc

Coming to KFL as thats my focus ...Its adjusted NAV returns on last 5 years basis after all expenses including tax is 6.8% vs Index 4.7% ....so why would one grudge about costs of management if on LT basis it outperforms any vanilla ETF like NZG etc ...even FNZ ...in trying to reduce my cost I would have lost 2.1% PA

https://kingfish.co.nz/investor-cent...o-performance/