KFL - discount to diluted NAV

[mike2020]

Alok, I looked at the 1 and 2 years for all their holdings plus the divs and NTAs last week when it got into the $1.20s and it looked a little bleak. That's what made me question what effect paying a percentage of NTA would have in a depreciating sp environment. My guess for it being back in vogue this week is simple, some people have given up trying to manage their own portfolio. I know how they feel
I also looked at the 10 year and that was a revelation. Also they seem to have taken a back seat approach over the last couple of years, which to be fair is understandable, the hold tight do nothing policy is public knowledge now with kiwi saver. I look forward to the warrant results.

I do hope they do another warrant issue asap.

[alokdhir]

Alok, I looked at the 1 and 2 years for all their holdings plus the divs and NTAs last week when it got into the $1.20s and it looked a little bleak. That's what made me question what effect paying a percentage of NTA would have in a depreciating sp environment. My guess for it being back in vogue this week is simple, some people have given up trying to manage their own portfolio. I know how they feel
I also looked at the 10 year and that was a revelation. Also they seem to have taken a back seat approach over the last couple of years, which to be fair is understandable, the hold tight do nothing policy is public knowledge now with kiwi saver. I look forward to the warrant results.

I do hope they do another warrant issue asap.

For me the main reason it came back with a bang is that after a long while its SP was below NAV ....like me many others wanted to get in but were not ready to pay premium to NAV ...My aim was not to get the lowest SP but get in below NAV as I am super happy to hold their portfolio of stocks anyday ...as and when market recovers KFL stocks will outperform the markets ...which can be seen from last few days of rally

Also if u so worried about depleting capital due to regular payouts in depreciating markets then u can choose to do DRP and return to cash payouts only when markets improve ....but I have seen it doesn't matter much in the long run as I have been holding since 2010 . Its cousins MLN and BRM are still at significant premium so KFL will have support ahead .

Today expecting its NAV around 1.39 too

Warrant issues will be regular feature as increases corpus thus beneficial to fund mangers too ...as long as they are not discount to NAV they are bonuses to holders too without any trickery needed

[blackcap]

For me the main reason it came back with a bang is that after a long while its SP was below NAV ....like me many others wanted to get in but were not ready to pay premium to NAV ...My aim was not to get the lowest SP but get in below NAV as I am super happy to hold their portfolio of stocks anyday ...as and when market recovers KFL stocks will outperform the markets ...which can be seen from last few days of rally

Also if u so worried about depleting capital due to regular payouts in depreciating markets then u can choose to do DRP and return to cash payouts only when markets improve ....but I have seen it doesn't matter much in the long run as I have been holding since 2010 . Its cousins MLN and BRM are still at significant premium so KFL will have support ahead .

Today expecting its NAV around 1.39 too

Warrant issues will be regular feature as increases corpus thus beneficial to fund mangers too ...as long as they are not discount to NAV they are bonuses to holders too without any trickery needed

The thing is with these stocks, if the premium to NTA becomes too much, all you need to do is go to the Annual Report, write down their holdings and % of each and just replicate the portfolio yourself. Sharesies gives you the ability if you don't have enough money otherwise for the diversification. Easy peasy and you pay a lot less than buying KFL on market.

[SPC]

Well I bought KFL on market last week at below NTA at $1.28 so I effectively I bought a basket of their holdings in one single trade at a great price offering approx 8% pa in divs.
What could possibly be simpler than that...buying over a dozen separate stocks...yeah nah.
Not to mention the tax simplicity with the pie structure. Gosh I love them even more.

[blackcap]

Well I bought KFL on market last week at below NTA at $1.28 so I effectively I bought a basket of their holdings in one single trade at a great price offering approx 8% pa in divs.
What could possibly be simpler than that...buying over a dozen separate stocks...yeah nah.

Yeah if you buy at below NTA all good. When these products were/are trading at 10+% premiums to NTA it makes no sense.

[SPC]

Well I'd like to see comparable div returns over a year from the individual holdings vs 8% pa from KFL to see how individual holdings stack up. I've never done that ..has anyone out of interest?

[Rawz]

Well I'd like to see comparable div returns over a year from the individual holdings vs 8% pa from KFL to see how individual holdings stack up. I've never done that ..has anyone out of interest?

suppose one could do that by selling some of their holdings. thats what KFL are doing.
Because their portfolio of stocks dont generate enough dividends to pay you 8% so they must sell some holdings.

lucky Fisher fund are gurus and know which ones to sell

[mike2020]

Every gambler knows that the secret to survivin'
Is knowin' what to throw away and knowing what to keep
'Cause every hand's a winner and every hand's a loser
And the best that you can hope for is to die in your sleep

[justakiwi]

Not feasible for small shareholders like me. Would take way too long to build each of those holdings up to a decent level. My disposable funds would be spread too thinly. KFL pays quarterly dividends, offers DRP, and regular warrants issues. I don't have a huge amount, but DRP and warrants have made a significant difference to the number of shares I now hold. I have never bought any additional shares at market price - KFL just sits there and takes care of itself. Having said that, if I had some spare cash right now, I'd be adding more on the dips.

The thing is with these stocks, if the premium to NTA becomes too much, all you need to do is go to the Annual Report, write down their holdings and % of each and just replicate the portfolio yourself. Sharesies gives you the ability if you don't have enough money otherwise for the diversification. Easy peasy and you pay a lot less than buying KFL on market.

[alokdhir]

Every gambler knows that the secret to survivin'
Is knowin' what to throw away and knowing what to keep
'Cause every hand's a winner and every hand's a loser
And the best that you can hope for is to die in your sleep

Best part about buying KFL below NAV is that its not Gambling ...its simple Investing .