Barramundi ( BRM )

[dabsman]

The problem with people saying buy warrants and sell head shares to pick up more etc etc is you need depth in the last week or two and if everyone is considering a similar thing you might become a price taker and not able to wait for the prices you want. I just got all my free ones and bought more than what I need as soon as they listed. No need to worry about all that fluffing about. I was buying head shares each quarter before divvy but got too many now. Will just use the 2 yearly warrant issue to keep accumulating along with the DRP which absolutely grows your holding nicely even without the nice share price increases seen

[FatTed]

Talking of warrants, is there enough time to buy warrants on 27th October and exercise them on the 29th October, does it matter which Bank you belong to?

[alokdhir]

Talking of warrants, is there enough time to buy warrants on 27th October and exercise them on the 29th October, does it matter which Bank you belong to?

U can ...last day of trading is 27th Oct ...then u can exercise them online on 29th Oct before 5 pm ...if not on ASB then do 2-3 hrs earlier as all major banks do EFT every 1-2 hours on working day . But why cut it so fine !!!

[FatTed]

Thanks Just asking for a Friend!

[Beagle]

Got "hundreds" of these and happy to exercise them all. The investment team have done a stellar job of outperforming the ASX in recent years and I expect that will continue. I think the prospects in a recovering world economy for the ASX (average forward PE multiple according to Harbour Asset Management is only just a little over half the NZX) are very good.

It'll be good to have a decent stake and sit back and let them do some of the work for me.

[alokdhir]

The only fear of holding Fisher Funds listed funds like BRM , MLN and KFL is steady dilution of the premium they currently command ...10-20% over their current NAV

This is a new development and there is no precedence of this ( used to be slight discount to NAV always ) in last 15 years or so .

New similar funds may try to oversupply to satiate this exuberant demand after all its easy to duplicate their regular NAV return based dividend model

Eventually it will go back to normal which is NAV or little below thus current SP maybe overpriced .

Even some outperformance by funds to markets will be eroded by premium dilution for long term holders entering now on current SP ...IMHO

[Beagle]

The only fear of holding Fisher Funds listed funds like BRM , MLN and KFL is steady dilution of the premium they currently command ...10-20% over their current NAV

This is a new development and there is no precedence of this ( used to be slight discount to NAV always ) in last 15 years or so .

New similar funds may try to oversupply to satiate this exuberant demand after all its easy to duplicate their regular NAV return based dividend model

Eventually it will go back to normal which is NAV or little below thus current SP maybe overpriced .

Even some outperformance by funds to markets will be eroded by premium dilution for long term holders entering now on current SP ...IMHO

I acknowledge your concerns and you're right in a historical context about pricing relativity to NTA there is no argument about that, however now that the new investment teams in this group have been in place for a few years there is growing market acceptance that not only is their consistent market outperformance truly remarkable, (very few professional mangers can outperform an index after fees and expenses on a consistent basis) but the market appears to believe its repeatable.

My contention is that one is buying not just the assets of the fund but the upfront STEEPP stock selection processes and the investment expertise that goes into that as well as the very close monitoring of each companies performance. I was very surprised to learn of their extensive company visiting program at last years BRM annual meeting even during Covid. While I agree it would be quite easy to replicate their distribution policy of 2% of NAV each quarter getting the investment analyst expertise, professionalism and systems to replicate such sustained and significant market outperformance is something I think would be exceptionally hard to do.

By paying slightly above NAV one is saying they first and foremost put real value in the professionalism of the investment analysts and secondly there is value in the structure of the company. I note a 15% premium to NTA still gives 8 / 1.15 = ~ 7% net return which for most investors on a 33% tax rate = 10.4% gross return.

I'm happy to put my money where my mouth is in a substantial way as an average annual outperformance of 8.6% per annum after fees and tax over the last three years is truly exceptional. You don't achieve outperformance like that by luck, its achieved with very rigorous and disciplined stock selection methods, dedication, professionalism and exceptional investment talent. http://nzx-prod-s7fsd7f98s.s3-websit...052/354652.pdf

[dabsman]

Im not worried about dilution or premium. My warrants will cost me 75c total (including the 1 for 4 free ones and I also bought quite a few around 10c) to exercise and NTA is 90c ish. It really depends on your position when you talk premium

[oldtech]

I have a "noob" question, if some kind person could please help.

I have filled out the online Exercise form (and received an email confirming my application), and made the payment via direct credit. Am I right in saying there is nothing else I need to do? I don't need to fill in and return the hard-copy form I was sent, do I?

[SPC]

Nope all done.