KFL - discount to diluted NAV

[Grimy]

It will be interesting to see the details of the new plan.
I have some KFL. I would normally buy individual stocks, but as I like most of the companies in KFL, and couldn't afford to buy them individually I went with KFL. Also the discount was attractive.

[biker]

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

Always a worry when someone of her status starts writing columns in a sunday tabloid.

[sharer]

.. of significance to share price, discount to NAV, & how this "should" vary cyclically under new dividend regime, [& other info important to members above who propose to rush into further investing in KFL, BRM or Merlin] : can all be found in what sounds like very reasonable & well-informed article in today's Sunday Star Times. Don't spend any money until you've read it, & pondered, would sound like good advice perhaps?
All best of luck & good wishes,
Sharer.

[Arbitrage]

Interesting AGM this morning. Crowd very subdued. Carmel gave a talk on the back of a good share price rise since March. Everyone seemed happy. However, being the cynic I looked at the numbers and they hadn't really performed ahead of the major indices. No one questioned this although the chairman did say that a lot of equity investment companies had performed as badly.
Plus a new way of distributing income has been proposed. Should keep those relying on the company for regular income happy.
Good food afterwards and plenty of it despite the usual rush.

[winner69]

KFL annual meeting today

Although total shareholder returns were down to 3.3 % from 18.2 percent the previous year due primarily to the fund’s then flagging share price, this year’s net asset value performance was good enough for the manager to be paid an outperformance fee of $1 million in shares and $1 million cash, on top of its 1.25 percent annual fee.

What's that saying you keep repeating Balance

[Balance]

KFL annual meeting today

Although total shareholder returns were down to 3.3 % from 18.2 percent the previous year due primarily to the fund’s then flagging share price, this year’s net asset value performance was good enough for the manager to be paid an outperformance fee of $1 million in shares and $1 million cash, on top of its 1.25 percent annual fee.

What's that saying you keep repeating Balance

"She is crying softly into her champagne on the balcony of the 5 Star hotel looking towards the Eiffel Tower" - it's too easy.

"heads we win and tails they lose."

KFL has underperformed by over 130% against NZX50 since listing if anyone bother to do a relative performance chart.

[winner69]

"She is crying softly into her champagne on the balcony of the 5 Star hotel looking towards the Eiffel Tower" - it's too easy.

"heads we win and tails they lose."

KFL has underperformed by over 130% against NZX50 since listing if anyone bother to do a relative performance chart.

But Balance - taking a portion of the outperformance fee in shares is a vote of confidence in the fund and continued outperormance

[Balance]

But Balance - taking a portion of the outperformance fee in shares is a vote of confidence in the fund and continued outperormance

Haha - as related to the wide-eyed unit holders chomping down the cheap sausage rolls and Raro powdered passionfruit/mango/orange juices at the AGM?

Do you know that an investment in AIA (no-brainer boring and predictable low beta stock) would have generated 260% more return than KFL since KFL was listed?

Plus one does not have to read the sorry arse excuses from KFL about why they have consistently underperformed but still charge management fees (and out performance fess) !

[winner69]

Balance - I do like that slide in the presentation that shows NAV increased from $166.m to $208m over the year

A solid $42m increase looks very good - but $28m came from exercise of warrants (new capital)

Suppose they charge their management fee on these extra funds?

[Balance]

Balance - I do like that slide in the presentation that shows NAV increased from $166.m to $208m over the year

A solid $42m increase looks very good - but $28m came from exercise of warrants (new capital)

Suppose they charge their management fee on these extra funds?

You got it, W69.

Pay capital back to give the illusion of performance (wow - high yielding stock, see!) and then ....

..... issue zillions of options (in the money) every so often so that punters put their own money back (or else get diluted by those who exercise) - and keep the management fees going.

The illusion has become reality!

Too easy - oldest trick in the book but works every time!

PS. Must plan the next trip to Paris to sip some more champagne. The management fees are getting embarrassingly high