Marlin

[Beagle]

http://nzx-prod-s7fsd7f98s.s3-websit...635/298749.pdf

Marlin investment manager significantly outperforms the market in march 2019 quarter.

Little known fact is that Fisher Funds ownership changed hands in 2017 and is now owned by TSB community trust.

[mfd]

http://nzx-prod-s7fsd7f98s.s3-websit...635/298749.pdf

Marlin investment manager significantly outperforms the market in march 2019 quarter.

Little known fact is that Fisher Funds ownership changed hands in 2017 and is now owned by TSB community trust.

Comfortably behind their benchmarks over 5 years though - total shareholder return of 10.7% including the faff of dealing with warrants and reinvesting all dividends, vs 12.2% benchmark. Why would you hold this now we can access international index funds cheaply?

[Beagle]

Comfortably ahead over the last 3 years...current manager doing extremely well. Change of ownership in 2017.
PIE tax free income level is unbeatable through any other overseas investment vehicle.
Simple cost effective portfolio allocation of funds overseas with no FIF drama's.
Current manager is beating the benchmark index.
Ability to buy on market in $Kiwi at very low brokerage rates and at a discount to NTA of as much as 13% at times.
DRP scheme at 3% discount.
TSR stat's to 31 March 2019 affected by near term warrant exercise on 12 April 2019 affecting the share price. Quite unusual for SP to trade at 13.6% discount to NTA
No work whatsoever for the Dog to do.

[couta1]

Comfortably behind their benchmarks over 5 years though - total shareholder return of 10.7% including the faff of dealing with warrants and reinvesting all dividends, vs 12.2% benchmark. Why would you hold this now we can access international index funds cheaply?

A no hassle investment that pays a tax free dividend and no FIF crap to attend to. PS-Warrants are easy to deal with ie convert them or sell them. Disc-XXOS sized holding.

[Beagle]

Agree 100% Couta1. Maybe he missed my post on 14% gross yield on the previous page.
My rating HHH - happily holding heaps

[mfd]

Agree 100% Couta1. Maybe he missed my post on 14% gross yield on the previous page.
My rating HHH - happily holding heaps

You mean they sell enough of their holdings each year to repay you some of your capital? The underlying holdings do not pay that high a yield. If you're after a hassle free overseas fund with the tax paid, why not pay 0.3-0.4% for a smartshares fund rather than 1.25%? Is it worth paying 3-4 times as much for someone to do your selling for you?

I would have zero faith in continued outperformance. The DRP and warrant smells like obfuscation to me, but each to their own.

[winner69]

You mean they sell enough of their holdings each year to repay you some of your capital? The underlying holdings do not pay that high a yield. If you're after a hassle free overseas fund with the tax paid, why not pay 0.3-0.4% for a smartshares fund rather than 1.25%? Is it worth paying 3-4 times as much for someone to do your selling for you?

I would have zero faith in continued outperformance. The DRP and warrant smells like obfuscation to me, but each to their own.

....but if the merry go round keeps going round it will be all OK

[mfd]

....but if the merry go round keeps going round it will be all OK

Very handy that people focus on the merry go round rather than the fees. Maybe we're paying for the entertainment value?

[Beagle]

You mean they sell enough of their holdings each year to repay you some of your capital? The underlying holdings do not pay that high a yield. If you're after a hassle free overseas fund with the tax paid, why not pay 0.3-0.4% for a smartshares fund rather than 1.25%? Is it worth paying 3-4 times as much for someone to do your selling for you?

I would have zero faith in continued outperformance. The DRP and warrant smells like obfuscation to me, but each to their own.

https://smartshares.co.nz/types-of-f...ge/total-world Passive fund charges are 0.55% per annum v 1.25% for Marlin managed fund
I would simply reiterate 3 facts.
1. I can and have bought at around a 13% discount to NTA, something that simply cannot happen with so called smart shares.
2. I like the PIE structure giving me what is effectively a gross return of 14% per annum on my entry cost.
3. The new manager has been consistently outperforming the relative index in the last 3 years.

You like so called smart shares where you pay $1.00 for $1.00 of passive assets and then pay 0.55% for the manager to mindlessly track some index. This doesn't seem especially smart to me.
I'm paying 87 cents on the dollar (13% discount to NTA) so regarding the extra fees at 0.7% per annum, by virtue of my discounted entry price the first 18.5 years of extra fee are covered, (assuming they only track the index not beat it which hasn't been the case in recent years).

Agree on the 'each to their own" and good luck with your smart shares.

[mfd]

I'm not particularly recommending smartshares and don't hold, it was just an example of a cheaper way to access this kind of fund. The other option is an even cheaper fund e.g. through invest now and do the tax work yourself.

I'll agree that there will be a discount value where this fund becomes attractive, and if you're looking for a simple draw down type arrangement it could be handy. I'm still young and don't need the income so having the higher fees chew up my returns for a few decades would not be ideal - compound interest works against you in this situation. I'm happy leaving others to keep the complex system of DRPs, share buybacks, capital repayments and warrant issuing going.

Fun fact, last year 15% of the paid dividend was funded by dividends marlin received, with the rest coming from sale of investments.