KFL - discount to diluted NAV

**SPC** · 21-06-2022, 11:30 AM

I've been holding kfl since 2004. Taking into account my agregate holding price minus div's received and profit from a few sales I'm sitting on a free portfolio of shares, not only that but they've returned considerably more than the holding cost.
Ive been paid to own them!. The shares still have a liquidation value at today's price and spit out quarterly divs. It's working well for me. Each to his/her own...

**alokdhir** · 21-06-2022, 11:45 AM

Originally Posted by mfd

Why not just buy the contents of their portfolio now at NAV, and avoid the ongoing fees?

U can but KFL gives u the option to take PIE income dividends which help if u have a large dividend portfolio already or other income like salary ,rental etc .

PIE income can be fully excluded from IR3 thus it gets taxed maximum at 28% only not 39 % ....saves a lot

**SPC** · 21-06-2022, 11:48 AM

Yep. You either get it or you don't.
Very happy long term holder.

**SPC** · 21-06-2022, 12:36 PM

I've also done the calcs on my BRM and MLN holdings.
BRM is not yet at free hold value but approaching (i.e total hold cost less sales profits and divs). It could still be liquidated today at at a profit.
MLN is a free hold (i.e total hold cost less sales profits and divs) and is ahead of hold cost and can be liquidated today at a profit.
They key for me to these outcomes has been buying up in market slumps and taking all divs as cash. Set and forget is not the way, dynamic management is necessary as for any long term holding.
I don't bark on about manager fees etc.
I retired from full time work at 53.
Just simply outlining what is possible with a long term view.
And an economical lifestyle helps..

**mfd** · 21-06-2022, 01:21 PM

Originally Posted by alokdhir

U can but KFL gives u the option to take PIE income dividends which help if u have a large dividend portfolio already or other income like salary ,rental etc .

PIE income can be fully excluded from IR3 thus it gets taxed maximum at 28% only not 39 % ....saves a lot

Much of the dividend is just the proceed of sales or shares which doesn't necessarily attract tax for an individual. Could be more interesting if you're a 39% rate payer but otherwise I'd be very surprised if the benefits outweigh the management fees.

Certainly a convenient income generator if you want a hands off approach, but you do pay for the convenience as you would expect.

**winner69** · 29-06-2022, 06:05 PM

Annual Report says that Kingfish didn't get a Performance Fee for the March 22 year .... zilch..... prior year they got $6.3m

Paid $5.3m to Fisher Funds as Management Fees

Kingfish employees are employed by Fisher so no need t disclose how much the guru investment guys got paid ... that would be interesting

**SPC** · 29-06-2022, 06:30 PM

So just to clarify. Kingfish Ltd has a board of directors plus a couple of admin type people. They contract Fisherfunds Management Ltd on a 5 year term to determine how the company invests.
Kingfish Ltd has no business asking what the employees of a third party get paid, in the same way I don't ask what my dentist or Doctor gets paid. I'm not interested and I don't care.

**ronaldson** · 29-06-2022, 07:30 PM

You can pierce the veil to a limited extent by looking up the Financial Statements filed by Fisher Funds Management Limited on the Company Office register. The most recent is for y/e 31 March 2021. Fee income totaled $125m, with Operating Expenses $48m. After other minor expenses Profit Before Tax was $69m and Distribution to Owners $51m ( entities associated with TSB own about 2/3rds with the other 1/3rd owned offshore ).

Of course these figures relate to all FF entities, not just MLN, BRM and KFL.