KFL - discount to diluted NAV

[Balance]

Ratkin, are you in shock or in awe of KFL going nowhere after 4 years? Meanwhile, BRM is down 40% in 18 months (quite an achievement) and Marlin is down 30% in 6 months (even more outstanding). I recall you getting all hot and excited about them?

Bitter could not be further from the truth - bemused and having a great chuckle. Don't you find it amusing that they have been recommending and still recommends a fund that has gone no way in 4 years? I do but I am sure there are a lot of Fisher investors wondering why they ever bothered?

What does Morningside actually do? They earn a fee for assessing funds and recommending them. So expect them to be very independent and objective.

[baxter]

Nonetheless they seem to have done a little better than ING whose partowner ANZ convinced many vulnerable customers to invest in their ironclad funds.

[Toulouse - Luzern]

Since 1 April Sample FFM portfolios (indicative):
NZ FFM +3%
AU FFM +4%

[Balance]

Since 1 April Sample FFM portfolios (indicative):
NZ FFM +3%
AU FFM +4%

Wow!

Since April 2004 to yesterday when KFL listed, NZX up 40%. KFL up 11%.

Since Oct 2006 when BRM listed, Australian market up 4.4%. BRM down 33%.

Meanwhile, lots and lots of management fees charged - millions. Who has been making out like robbers?

[voltage]

Kingfish must be a screaming buy at 30% discount and the shares they own also well below NTA. Have I missed something???

[Excelsior]

Kingfish must be a screaming buy at 30% discount and the shares they own also well below NTA. Have I missed something???

I guess growth shares get severely rerated in a down market - lots of shares even with reliable income are now heavily discounted. KFL has a few of these in its portfolio though. Also experienced investors don't like the thought of paying management fees, and I wouldn't image many novice investors which KFL probably appeals more to are buying in this market
What happens if many of Fishers managed funds investors succumb to the fear of losing money and want to redeem their units. Fishers becomes a forced seller of some relatively illiquid shares which drives these prices down markedly and hence the asset backing. Can't see much new money coming into these funds for a while to balance this. Look at how the prices of CVT, OIC, SLG etc fluctuate. The high prices of these stocks a year ago must've been due in part to Fishers aggressive buying of these when the money was available. Perhaps the reverse is now happening.
But you're right Voltage the discount is pretty tempting and I did buy a few of these below a dollar.

[voltage]

This stock must be bargain basement running at 30% below NTA, will buy more.

[macduffy]

Yes, it's pretty much the norm for investment companies to trade at a discount to NAV. And it usually becomes more pronounced in a bear market.
Wouldn't touch it myself in these conditions.

[Excelsior]

The fact that KFL has been trading at a 30% discount to NAV since December 2005.

Love these fools and their money.

Alot of the reason for that was the potential dilutionary effects of the options on asset backing. Now that's out of the way 30% is pretty attractive if you've got faith in the portfolio. And no performance fee until their backover the high water mark of 1.70 odd

[winner69]

In spite of all the magic that Carmel weaves shareprice still big discount to NAV .... NAV a $1 and shreprice 70 something

Latest scheme is to pay out 8% of NAV to shareholders each year in addition to the dividends .... take it every shareholder gets a go at this cause there seems to be a reinvestment scheme available

She thinks this will get te shareprice back to NAV