KFL - discount to diluted NAV

[Rawz]

Any thoughts on where the pocket money from PPH delist will end up.

MHJ or TRA is my guess

[Muse]

"Kingfish trimmed its holdings in Infratil, Fisher & Paykel Healthcare, and Summerset during the month."

Though they still have full faith in current value play ...MFT !

Nice one.

Fantastic company...though I reckon it's run rate has come off and its Q4 going to post negative PCP's that will surprise on the downside. Just IMO...will see on the 25th.

[alokdhir]

Nice one.

Fantastic company...though I reckon it's run rate has come off and its Q4 going to post negative PCP's that will surprise on the downside. Just IMO...will see on the 25th.

Agree with short term turbulence for it ahead ...but I am looking real long term here ...so can only add or look thru few normalisation qtrs ...on other hand it may have priced in whats ahead as market fully understand what and why of whats ahead ...

PS : I am more worried about FPH post results then MFT ...but its again short term turbulence for great companies !!

[Not too Flash]

Good to see more repurchasers in the last few days

[alokdhir]

Yes ..they ready to buy big @ 1.30 too ...day before was 100K @ 1.29 ...

Its portfolio is doing very well ...only some big seller still around ...but good for us ...repurchases will help improve NAV slowly

[Grimy]

I bought a few more today with the proceeds from a maturing Wellington Airport bond.

[alokdhir]

As per my model today KFL portfolio up 2% ...wow

[ronaldson]

I would think that the move to tax trust income at 39c in the $ rather than 33c will increase the attractiveness of PIE investments such as KFL. Quite a large number of trusts derive taxable income and a proportion of those rely upon dividend income.

While the intended new tax rate can be avoided (as could the 33c rate) by distributing to beneficiaries who are not taxed at such rate under current brackets for personal income it may cause a measurable shift in investment behavior. Given that Robertson justified his announcement by reference to the billions (yes, billions) of $ of income shifted to trusts since 2021 as a result of the previous introduction of the 39c top rate for personal income whilst the top rate for trusts was retained at 33c the momentum towards preference for investments that are actual PIE's could be much more than the market seems to presently anticipate, and a shift could occur much more quickly as well.

I am interested in others thoughts on this.

[alokdhir]

I would think that the move to tax trust income at 39c in the $ rather than 33c will increase the attractiveness of PIE investments such as KFL. Quite a large number of trusts derive taxable income and a proportion of those rely upon dividend income.

While the intended new tax rate can be avoided (as could the 33c rate) by distributing to beneficiaries who are not taxed at such rate under current brackets for personal income it may cause a measurable shift in investment behavior. Given that Robertson justified his announcement by reference to the billions (yes, billions) of $ of income shifted to trusts since 2021 as a result of the previous introduction of the 39c top rate for personal income whilst the top rate for trusts was retained at 33c the momentum towards preference for investments that are actual PIE's could be much more than the market seems to presently anticipate, and a shift could occur much more quickly as well.

I am interested in others thoughts on this.

I agree with your thoughts ...Budget have provided further reason to get into listed PIEs for trusts if they have other equity investments ...better switch to PIEs than companies ...11% tax saved is lot of savings ....not just for trusts but for individuals also ...the current discount can cover their fund costs as many here fear management costs .

KFL has come full cycle ...from big premium to big discount ....next is premium again ...not easy as steady state is almost parity or small discount

Nonetheless KFL is offering great value at current SP ....better value than most fairly valued yield players like HLG / TRA etc

[Rawz]

where do you think the pushpay money will go?

to another stock in into current portfolio?