Marlin

[couta1]

Well Snoopy for those of us holding Marlin shares and on the higher tax rate fortunately don't have to think about which method to use as we don't have to use any.Lol

[Snoopy]

Well Snoopy for those of us holding Marlin shares and on the higher tax rate fortunately don't have to think about which method to use as we don't have to use any.Lol

Being ignorant of the high rate of tax you are actually paying behind the Marlin firewall doesn't mean you aren't paying it. But "Ignorance is bliss" I guess. Don't let me disturb your happiness.

SNOOPY

[couta1]

Being ignorant of the high rate of tax you are actually paying behind the Marlin firewall doesn't mean you aren't paying it. But "Ignorance is bliss" I guess. Don't let me disturb your happiness.

SNOOPY

When your getting a near 14% return on your investment as Beagle has already highlighted then ignorance really is bliss.

[Beagle]

When your getting a near 14% return on your investment as Beagle has already highlighted then ignorance really is bliss.

Happiness is a very well fed Beagle

[777]

Being ignorant of the high rate of tax you are actually paying behind the Marlin firewall doesn't mean you aren't paying it. But "Ignorance is bliss" I guess. Don't let me disturb your happiness.

SNOOPY

What is high?

28c or 33c is what I pay everywhere else so why am I being ignorant.

Do you also moan about the cost of fees on funds when getting 10-15% returns?

[mfd]

When your getting a near 14% return on your investment as Beagle has already highlighted then ignorance really is bliss.

Slightly misleading to describe this as a return on capital - it is almost entirely a return of capital. Marlin will sell your holdings, regardless of the state of the market, to pay your dividends.

[Snoopy]

What is high?

28c or 33c is what I pay everywhere else so why am I being ignorant.

'High' is more than you would pay for the same investment under other tax structures for the same underlying investment.

On the positive side if you are a top rate tax payer, the PIE structure for Marlin means you will be taxed at a maximum rate of 28%,

On the negative side any capital you have returned to you as a 'dividend' by Marlin would have only been taxed at a rate of 1.5% of the opening balance per year if you had held these assets in your own name, or even in a private company set up by you.

As an example, if you held these assets in your own name for five years, the amount you would have left of your maturing balance after progressively paying tax for five years under the FIF regime would be:

(1-0.015)^5 = 92.7%

Paying just over 7% (7.3%) of the post investment total sounds a lot less than paying the 28% PIE rate for returning capital to me.

Do you also moan about the cost of fees on funds when getting 10-15% returns?

Funds have good and bad years. The worst effect of being comparatively overtaxed will occur in the not so good years.

SNOOPY

[Beagle]

Slightly misleading to describe this as a return on capital - it is almost entirely a return of capital. Marlin will sell your holdings, regardless of the state of the market, to pay your dividends.

Why should we care in the slightest from where our dividends come ?
Its obviously sustainable as despite 5 discounted warrant issues over the years the NTA is approximately still at close to the $1.00 original issue price.
Can you please direct me to any other share on the NZX paying a sustainable dividend that amounts to 14% gross for someone on the 33% tax rate because to the best of my knowledge its unbeatable and also lowers the risk of one's overall portfolio by investing a portion of one's investments overseas in a fund that's beating its relative performance index.
Coutts and I also bought heaps at a deep discount to asset backing. Talk about a winning hand !
QED.

[mfd]

Why should we care in the slightest from where our dividends come ?
Its obviously sustainable as despite 5 discounted warrant issues over the years the NTA is approximately still at close to the $1.00 original issue price.
Can you please direct me to any other share on the NZX paying a sustainable dividend that amounts to 14% gross for someone on the 33% tax rate because to the best of my knowledge its unbeatable and also lowers the risk of one's overall portfolio by investing a portion of one's investments overseas in a fund that's beating its relative performance index.
Coutts and I also bought heaps at a deep discount to asset backing. Talk about a winning hand !
QED.

It's a strategy that worked well during the bull run we've had. If there were a crash that, say, reduced the NAV by 30%, you will find your 'dividends' reduce by the same proportion - the fund sells holdings so that it is able to distribute 2% of NAV per quarter. As snoopy points out above, there are also tax implications.

So long as people understand this dividend is not analogous to a regular company dividend, that is fine. People are welcome to pay the hefty fees for marlin to return their capital to them.

[Beagle]

Their fees are not hefty and they are outperforming the relative index even after paying them and paying these so called expensive FIF taxes.
Adjusted NAV Return, (after fees and taxes) for the last 3 years = 13.4% per annum
Benchmark Index 11.3% per annum

This is a 2.1% average beat per annum after fees taxes and performance fees if any paid over the last 3 years.

Coutts and I accessed this management expertise and significant market outperformance at a whopping 13% discount to NTA and will enjoy a 14% gross dividend going forward.

Some people will see opportunity and others will just see the fees. "There is none so blind as those that will not see"
At 88 cps today this represents a 10.6% discount to last reported NTA late last week of 98.47 cps.
The opportunity is there to achieve diversification internationally in a proven outperformer with a very efficient tax structure at quite a material discount to NTA.
I get it that some people think they're good enough to pick overseas shares themselves and achieve outperformance and I wish them luck with that.
Others may look for a lower cost ETF and be happy to pay $1.00 for each $1.00 in assets content to know they will slightly underperform the market after fees and taxes each year. That seems like a pretty unattractive prospect to me but each to their own...