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Thread: Marlin

  1. #501
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    Quote Originally Posted by fungus pudding View Post
    When money is cheap assets are not.
    When money is cheap, assets are not (eventually). In the meantime, make hay while the sun shines.

  2. #502
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    If you sold the head shares and bought the underlying component stocks (with 30,%gain as calculated) the question of dividends then applies. Do the divs of the components add up to the 8,% pa NTA-referenced head share div or less (try your own calcs) and of course the PIE tax benefit disappears as for non pie divs and tax compliance admin surfaces as well...20-30 non pie stocks versus one single pie stock....no thanks

  3. #503
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    Quote Originally Posted by SPC View Post
    If you sold the head shares and bought the underlying component stocks (with 30,%gain as calculated) the question of dividends then applies. Do the divs of the components add up to the 8,% pa NTA-referenced head share div or less (try your own calcs) and of course the PIE tax benefit disappears as for non pie divs and tax compliance admin surfaces as well...20-30 non pie stocks versus one single pie stock....no thanks
    No, the dividends certainly wouldn't be 8%, just as the income marlin make doesn't give you 8% dividends. You can do the same as they do and sell holdings to make up the difference if you want (and maybe pay zero tax on that income)

  4. #504
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    Which of course would be totally unrealistic given the complexity cost and time required. So why would you bother.
    Actually 'distribution' is the terminology used on the pie tax statements and most other corporate comms I think you'll find.

  5. #505
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    Quote Originally Posted by SPC View Post
    Which of course would be totally unrealistic given the complexity cost and time required. So why would you bother.
    Actually 'distribution' is the terminology used on the pie tax statements and most other corporate comms I think you'll find.
    Sure, much easier to leave it to the managers if you need the high regular income, and to pay for the privilege.

    From my readings around the area of financial independence, there is a rule of thumb (generally considered quite optimistic these days) that you can draw down approx 4% from your lump sum of invested capital each year and reasonably hope that it will survive your 30-40 years of retirement. I would be interested to see the Monte Carlo simulations of the survivability of a fund forced to pay out 8% of funds each year over a few market cycles.

  6. #506
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    Have we not had a few market cycles since each of these funds listed?
    The dip last year was huge. As the was the recovery.
    Still 'distributing after all this time.

  7. #507
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    Quote Originally Posted by SPC View Post
    Have we not had a few market cycles since each of these funds listed?
    The dip last year was huge. As the was the recovery.
    Still 'distributing after all this time.
    No, the funds haven't experienced a sustained down market that lasts years yet. I believe they were formed after the GFC. A down quarter isn't so bad, but spitting out dividends for a couple of years while the market is down, funded by selling shares at rock bottom prices, will be interesting.

  8. #508
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    Wrong. KFL listed late 90s from memory.
    BRM 2006 MLN a year or so later.
    Plenty of ups and downs over that time
    Still around and doing well.
    But I get back to my original point. Don't get hung up about what's under the hood. Just drive the car. Like any other share. Buy it when you like it. Sell it when you don't.
    Last edited by SPC; 05-05-2021 at 10:28 PM. Reason: Spelling

  9. #509
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    Quote Originally Posted by SPC View Post
    Wrong. KFL listed late 90s from memory.
    BRM 2006 MLN a year or so later.
    Plenty of ups and downs over that time
    Still around and doing well.
    But I get back to my original point. Don't get hung up about what's under the hood. Just drive the car. Like any other share. Buy it when you like it. Sell it when you don't.
    You're quite right about BRM and MLN, my mistake. I only see history for KFL to 2004 but it may predate that. So yes, all went through the GFC and survived, although MLN and BRM only started to thrive a couple of years ago

  10. #510
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    Quote Originally Posted by mfd View Post
    You're quite right about BRM and MLN, my mistake. I only see history for KFL to 2004 but it may predate that. So yes, all went through the GFC and survived, although MLN and BRM only started to thrive a couple of years ago
    KFL listed in March 2004 only and its quarterly 2% of NAV dividend policy started from 2010 only . It had seen some rough times but not sustained bear markets as now that are not allowed to happen by Govts and Central banks ...that has brought us to negative rates etc . But I do understand your point that in sustained downtrend it will be cannibalising its portfolio only for dividends if that situation ever arises .

    April 19th Marlin warrant announcement with record date of 14th May ...SP from 1.34 on 14th April to 1.61 on 4th May while NAV from 1.24 to 1.25 only . Means new warrant issue added about 27 cents to SP while NAV increased only 1 cent

    These are the facts as per NZX website ...One can draw his/ her conclusions . Expected exercise price is 1.28 minus 10 cents dividend = 1.18 ..next May

    This boost in SP to get 1/4 FOC warrant becomes self fulfilling to increase the difference between SP and expected exercise price thus boost to expected warrant price on listing ...so more like dog chasing its own tail ...lol

    Warrant should list around 20 cents IMHO ...

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