Barramundi ( BRM )

[mshierlaw]

Net divvies going forward at 8% (PIE so tax free), will be boosted by the discount to NTA one is getting 8 / 0.8575 = 9.33% net. For taxpayers on a 33% tax rate this represents an effective gross yield of 9.33 / 0.67 = 13.93%.

You have lost me here. How does a PIE fund make for a tax free dividend?

I'm getting my first dividend statement shortly, so hoping you are correct.

[Beagle]

You have lost me here. How does a PIE fund make for a tax free dividend?

I'm getting my first dividend statement shortly, so hoping you are correct.

https://barramundi.co.nz/investor-ce...nt-strategies/

From their website -
Barramundi has a clear advantage over many other listed entities through their Portfolio Investment Entity (PIE) tax status. As a listed PIE, Barramundi dividends will be tax-free to New Zealand resident shareholders. Refer to ‘What does PIE mean?’ under the FAQ section of the website for further information.

PIE Regime
Barramundi is a registered Portfolio Investment Entity (PIE) for tax purposes. The PIE regime has significant advantages for shareholders:
· New Zealand tax resident investors:
Natural person Shareholders or Trustees do not have to include dividend income from Barramundi in their tax return (although they can elect to include such dividends, which may be a benefit if the taxpayer is on a marginal tax rate that is lower than 28% and wants to claim imputation credits attached at the higher rate of 28%).
Other shareholders only have to include fully imputed dividends as assessable income, in which case the imputation credits should usually fully offset any tax liability. To the extent that the dividend is not fully imputed, the dividend should be treated as excluded income (i.e. not taxable).
No Resident Withholding Tax is withheld on distributions to New Zealand resident investors.
· Non-resident investors:
To the extent that a non-resident investor receives a dividend that is not fully imputed, the dividend should not have Non Resident Withholding Tax (NRWT) deducted in New Zealand.
NRWT may be withheld on fully imputed dividends (unless an applicable double tax treaty provides otherwise). Where this is the case, the investor will receive an additional supplementary dividend. This should compensate the investor for the amount of NRWT withheld on the dividend.
The above refers to New Zealand tax only, the tax position of each investor will need to also be considered in their relevant jurisdiction.
· Imputation credits will be attached to dividends to the fullest extent possible.
· There is no tax on the distribution of capital gains to shareholders.
"Emphasis added"

Plenty more information at www.barramundi.co.nz
Enjoy your dividend

Barramundi is also liable for tax under the FIF regime (Foreign Investor Fund regime) but as I understand it a large part of their portfolio is exempt under the exclusions for Australian companies incorporated within the rules. N.Z. shareholders do not have to worry about the partial application of FIF rules with this company, all that is taken care of by the company.

[tim23]

Thanks for that. Certainly appreciate your professional insight

Interesting MLN should trade closest to NTA as they have such tiny shareholdings in huge companies so if selling blocks can sell at market price whereas KFL selling large block of NZ shares may have to discount them.

[mshierlaw]

https://barramundi.co.nz/investor-ce...nt-strategies/

From their website -
Barramundi has a clear advantage over many other listed entities through their Portfolio Investment Entity (PIE) tax status. As a listed PIE, Barramundi dividends will be tax-free to New Zealand resident shareholders. Refer to ‘What does PIE mean?’ under the FAQ section of the website for further information.

PIE Regime
Barramundi is a registered Portfolio Investment Entity (PIE) for tax purposes. The PIE regime has significant advantages for shareholders:
· New Zealand tax resident investors:
Natural person Shareholders or Trustees do not have to include dividend income from Barramundi in their tax return (although they can elect to include such dividends, which may be a benefit if the taxpayer is on a marginal tax rate that is lower than 28% and wants to claim imputation credits attached at the higher rate of 28%).
Other shareholders only have to include fully imputed dividends as assessable income, in which case the imputation credits should usually fully offset any tax liability. To the extent that the dividend is not fully imputed, the dividend should be treated as excluded income (i.e. not taxable).
No Resident Withholding Tax is withheld on distributions to New Zealand resident investors.
· Non-resident investors:
To the extent that a non-resident investor receives a dividend that is not fully imputed, the dividend should not have Non Resident Withholding Tax (NRWT) deducted in New Zealand.
NRWT may be withheld on fully imputed dividends (unless an applicable double tax treaty provides otherwise). Where this is the case, the investor will receive an additional supplementary dividend. This should compensate the investor for the amount of NRWT withheld on the dividend.
The above refers to New Zealand tax only, the tax position of each investor will need to also be considered in their relevant jurisdiction.
· Imputation credits will be attached to dividends to the fullest extent possible.
· There is no tax on the distribution of capital gains to shareholders.
"Emphasis added"

Plenty more information at www.barramundi.co.nz
Enjoy your dividend

Barramundi is also liable for tax under the FIF regime (Foreign Investor Fund regime) but as I understand it a large part of their portfolio is exempt under the exclusions for Australian companies incorporated within the rules. N.Z. shareholders do not have to worry about the partial application of FIF rules with this company, all that is taken care of by the company.

Many thanks Beagle.

I have learnt something today. BUY more ......... then get some tax advise.

[Beagle]

LOL I prefer to think about the tax situation before investing. Beagle's don't like sharing their dividend food with anyone, especially the Government

[Beagle]

http://nzx-prod-s7fsd7f98s.s3-websit...504/309524.pdf
Annual meeting presentation from Friday. I attended and was satisfied with the presentation. Fund performance more or less matched the index last year. FY20 has started well for the company with the first quarter's return at about 7.6% from memory well over double the market return for the quarter ended 30 September of about 3.3%.
Chief investment officer is confident they are, (to quote an overused phrase), well positioned for the year ahead. They put on a nice lunch afterwards.

[Beagle]

Couta is proud of me because I "did a Couta" with these when I exercised my warrants today.

[Cricketfan]

Great a company that's not making money bought right at the peak XRO. They also have NAB as a much larger holding currently under the pump.
There is no evidence that this fund manager has added any value to unitholders. The SP of BRM has more or less been in steady decline for the last 5 years. I suggest anyone contemplating this company should bring up a five year share price chart and have a good long look. A picture speaks a thousand words ! 71 cents 5 years ago, now 59 cents. What Snoopy and Balance have suggested is how it really is. The dividend yield is artificially propped up through repayment of capital.
This will always trade at a LARGE discount to asset backing because it has incompetent heavily overpaid management who have dug themselves into an intransigent position from which shareholders can't extricate themselves without selling on market.

I was reading some older posts on BRM after you mentioned it on the Power Shares thread. Has the business really improved a lot since the above comments from last year?

[Beagle]

A lot has changed since that post of nearly 18 months ago and yes the new investment team is performing very satisfactorily, see here https://www.barramundi.co.nz/assets/...ember-2019.pdf
At the time of the post you referenced, May 2018, their chief investment officer was Frank Jasper, see here https://www.barramundi.co.nz/assets/...March-2018.pdf He was a very poor performer.
I am sure you will have noticed my subsequent comments about the effective gross yield.

[Cricketfan]

A lot has changed since that post of nearly 18 months ago and yes the new investment team is performing very satisfactorily, see here https://www.barramundi.co.nz/assets/...ember-2019.pdf
At the time of the post you referenced, May 2018, their chief investment officer was Frank Jasper, see here https://www.barramundi.co.nz/assets/...March-2018.pdf He was a very poor performer.
I am sure you will have noticed my subsequent comments about the effective gross yield.

Thanks for that. 18 months seems like a very short timeframe to judge investment performance though, especially after many years of poor performance. I guess time will tell whether they can sustain that.