Can someone please explain to me what the pros and cons are of investing in KFL via a broker vs going direct to fisher funds and investing in their NZ growth fund?
I don't think you can invest directly with Fisher Funds for their listed funds like Kingfish?
Can someone please explain to me what the pros and cons are of investing in KFL via a broker vs going direct to fisher funds and investing in their NZ growth fund?
They are looked after by the same management team. But there are some differences in the Fisher NZ Growth Fund elements and the listed Kingfish as can be seen in my post here:
There are no warrants associated with Fisher NZ Growth fund, and no dividends IIRC. But you could sell off a small proportion of your Fisher NZ Growth Fund each year if you wanted to get an income from them! That is effectively what Kingfish do, to give shareholders their 'dividend stream' each year.
Another difference is that if you sell or buy shares in the Fisher Growth Fund , those transactions will always be at asset backing. By contrast Kingfish shares may trade noticeably above or below asset backing based on market sentiment.
SNOOPY
Last edited by Snoopy; 07-03-2023 at 06:12 PM.
Reason: of -> off
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There is massive tax advantage of listed PIEs ...check that out on IRD website ...KFL is a listed PIE
Also portfolio is not exactly the same ...KFL doesn't have SERKO and XERO
KFL has many advantages over NZ Growth fund if u looking for regular hassle free income ...with no ambiguity about tax status ...as all payments from KFL are fully final tax paid and no need include in IR3 if its not advantageous to u to do so
For growth u can choose DRP option and get added shares at 3% discount every qtr ...
Warrants are like Bonus which can be sold in the market if not looking to exercise them
Most of the time KFL trades just below NAV but has T+2 liquidity of stocks but u need pay brokerage on KFL trades both ways ...
They are looked after by the same management team. But there are some differences in the Fisher NZ Growth Fund elements and the listed Kingfish as can be seen in my post here:
There are no warrants associated with Fisher NZ Growth fund, and no dividends IIRC. But you could sell of a small proportion of your Fisher NZ Growth Fund each year if you wanted to get an income from them! That is effectively what Kingfish do, to give shareholders their 'dividend stream' each year.
Another difference is that if you sell or buy shares in the Fisher Growth Fund , those transactions will always be at asset backing. By contrast Kingfish shares may trade noticeably above or below asset backing based on market sentiment.
Unlisted PIEs have the the same tax advantage and Fishers NZ Growth Fund is one of those.
SNOOPY
" What makes listed PIEs different to multi-rate PIEs?
Unlike distributions from multi-rate PIEs, dividends paid by listed PIEs are taxable, and are not taxed at your PIR. Listed PIE dividends often include tax credits such as imputation credits, which are calculated based on a 28% tax rate. So even though you don’t need to include listed PIE dividends in your tax return, if your tax rate is less than 28% you can choose to report this income on your tax return in order to claim the excess tax credits. "
Who is so desperate to get out of KFL today and recently too ....Normally its pretty buoyant before going ex dividend but today was very special ...huge volumes and relentless selling much below NAV ....maybe someone knows something or just switching investments ??
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