Barramundi ( BRM )

[winner69]

And the free calculator app on the iPad says its 11.55574887632304%

Amazing what you get with free stuff eh

[winner69]

Yes very good little chart there. Not being picky but i make it 13% discount , 8 divided by 69. My situ and current rebalancing requires more income from my portfolio; BRM fits nicely at decent discount and hopefully Genesis is a good fit too. Caveat with BRM is a possible decent correction coming so haven't gone ballistic with my first shoal of shares.

The price chart probably looks like that because since Feb 2013 the NAV has declined by 19% (rounded). NAV was 85 cents back then

That's in NZD so some forex impact and the dividend impact but heck 19% is a lot eh

But alls OK because adjusted NAV is over a dollar. Maybe Balance can explain that

[Joshuatree]

And the free calculator app on the iPad says its 11.55574887632304%

Amazing what you get with free stuff eh

lol awesome calculator and you're right, how did i get that wrong Twice. My eyes prob ; am off to have laser done on a tear in my only good eye tomorrow; if i stuff up again you'll know why

[bryndlefly]

Thanks for the informative answers everyone. The current share price makes more sense to me now. cheers

[Balance]

Heads they win, tails you lose.

Imagine using capital to pay 'dividends' to give the illusion of performance while they rip fees out year after year.

Might as well invest in Sanford if you like fish.

[winner69]

Heads they win, tails you lose.

Imagine using capital to pay 'dividends' to give the illusion of performance while they rip fees out year after year.

Might as well invest in Sanford if you like fish.

Quick calculation (on the trusty old Canon) gives the future value of those performance fees at 7-8 cents a unit - hey that's about the discount to NAV.

Heads they win, tails you lose

[winner69]

Thanks for the informative answers everyone. The current share price makes more sense to me now. cheers

Is it a buy for you though?

[Joshuatree]

Tackling the question as to whether fees are excessive is unlikely to be as clear cut as it appears. However, from what I can see, BRM incurs a 1.25% management fee (reduced for poor performance) and 15% of gains above the benchmark index (subject to high watermark), of which 50% is effectively paid by the issue of new BRM shares.

The high watermark effectively means the last "high" NAV at which a performance fee was paid. The reason there is still a fee at current levels when the shares were originally issued at $1, is that the value is adjusted for dividends issued.

For comparison (and since MFG was mentioned), Magellan Flagship fund also appears to have base fees of 1.25%, but requires performance to exceed 10%pa before paying performance fees and will no longer pay performance fees after 2016. The Magellan Global Fund (unlisted) has base fees of 1.35% and pays 10% of excess return above benchmark subject to also high watermark and also exceeding fixed interest rates (in the form of the 10 yr govt bond rate).

The Milford Asset Management Trans-Tasman fund might be more comparable to BRM, if unlisted, and has a 1.05% base rate and performance fee of 15% above benchmark - the benchmark being NZX50 portfolio index at time of trust deed (net of fees and gross of tax). I could not find evidence of a high watermark, but it is possible there is one.

Pie Funds seems to have a 1.5% base management fee ($150,000 per fund minimum) and a performance fee of 15% of return above previous high watermark.

Good stuff , thanks lizard

[bryndlefly]

Is it a buy for you though?

i bought into them last September when they were uptrending, i was actually looking at their sliding shareprice wondering if i should sell. They're now worth almost 10% less than what i paid for them, but they do pay a decent dividend, so hadn't made up my mind. i've held onto falling stocks before though, so wondered if i should try this whole stoploss limit thingy. As you can probably tell I'm fairly self-taught with share trading and am working it out by trial and error (mostly error... although i've had the occasional good investment too).

[Billy Boy]

I also have been watching them...
Have had the trigger finger at the ready.
I do not see them moving enough until the
ozzy economy starts to pick up. And that could be
some time off
BB