Marlin

[Billy Boy]

I have been picking up these from time to time as a divvy stock and from that end they have preformed very well . 10% plus PA, and a pie divvy to boot.
Now I dont care if the boss wears a skirt or not, so long as I get to ride the gravy train.
Now I and wondering if it's the skirt thingy thats got some posters getting the pricker here.
Or is just coz MLN is not in the NZX50 so not getting the exposure ??
cheers BB

[Lizard]

MLN have more than recovered the NAV lost in paying out a 2% dividend last month, despite turbulence in global markets. They are still trading at a 20% discount to NAV (at 71cps). I think they make a logical addition to a diversified portfolio at current prices, particularly for those requiring regular income from their investments.

[Lizard]

Do you ever think it will close up that 20% discount to NAV? My understanding is that closed end funds tend to trade at significant discounts to NAV, unless there is a liquidation threat.

They usually trade at a discount, but 20% is at the extreme end! There are always some closed end funds that trade at a premium - e.g. MFF:ASX currently trading at $1.39/unit, but with only $1.19 of NTA (or $1.26 allowing for deferred tax). Some more illiquid investment trusts on the NZX secondary listing can be picked up at odd discounts occasionally after taking account of currency translation, but I still think 20% discount is a bargain.

Additionally, the PIE structure may be tax efficient for some investors and the relative liquidity over unlisted funds can also be an advantage.

[gorn]

My first post
Have been following the fisher funds discounts for some time, and have Marlin for divvie (effectively 10% after tax) plus currency effect as our dollar falls. I think the discount will shrink if the NTA gets back above a $1 - it certainly did with Kingfish fund since it moved above the issue price in october last years - even traded a premium briefly for a day or two recently.

[Lizard]

Welcome gorn!

One of the most challenging positions in investment is those people who rely on their portfolio for income, but whose portfolio is relatively small and who struggle to generate an excess of income - may even need to erode capital.

These people cannot afford to lose capital or erode it too quickly, as they have very few good options for rebuilding that capital and therefore require a low risk approach. Normally, that would mean diversification or safe low-returning investments such as term deposits. However, these folk also rely on the income (preferably spread across the year) and the lower the return, the higher the likelihood they will need to eat into capital. Their portfolio is probably also too small to diversify at a stock-specific level. I am guessing there are quite a few retirees with $50-$200k in savings on top of the family home who would be in such a position.

Faced with such a situation, I personally would try to put 60-80% in rolling term deposits and then look for opportunities with the potential for some capital growth for the remainder, aiming for a lower risk end of spectrum and good liquidity. Right now, I would probably choose a selection of secondary market bonds with resettable rates, property trusts and share funds. This is where I think MLN has a niche - providing exposure to offshore markets and currency movements while still paying regular, large dividends in a tax-favourable structure. It is also liquid, has low exit/entry costs (brokerage) and covered by local regulation. At 20% discount, the downside seems capped to a degree.

I would be interested in hearing from posters who can identify other investments that meet these criteria.

[percy]

Not exactly a great record.Raised something like $1 per share.NTA now 89cents?
That is not a good "funds under management record."
Maybe the SP discount to NTA is a true indicator.
Avoid.

[kiora]

PIEFUNDS :Thanks for your earlier tip Lizard

[Billy Boy]

Not exactly a great record.Raised something like $1 per share.NTA now 89cents?
That is not a good "funds under management record."
Maybe the SP discount to NTA is a true indicator.
Avoid.

Avoid ??? really !!!
I have a 6 figure holding here, returning 9%+ (pie), at 20% dis to NTA I Feel quite secure.
Read their balance sheet. They dont have any debt etc.... Doing a steady buyback etc.
The Great "Checker uppera", Do they answer your emails... Ans., Yes. And on one occasion
they rang me with an explanation.
" Maybe the SP discount to NTA is a true indicator."
No it's not. But the fundamentals are. The SP can stay as low as it likes coz I love to
accumulate at these levels.
Cheers BB

[percy]

MLN listed in October/November 2007.NTA at time was .9721 cents, and the SP was about the same..
Now nearly 6 years later the NTA is 89cents,and the SP is 73 cents.
In the meantime look what other companies' share price have done; EBO from $4.82 to $9.60,TUA from $1.12 to $1.80,POT from $6.76 to $14,RYM from $2.07 to $6.76,SKL from.96 to $1.38.
While MLN SP has gone from .97cents to .73cents.
They have destroyed shareholders wealth.Your money is better invested elsewhere to obtain dividends and SP growth.
I repeat avoid MLN,as they are a serial under performer.

[CJ]

MLN listed in October/November 2007.NTA at time was .9721 cents, and the SP was about the same..
Now nearly 6 years later the NTA is 89cents,and the SP is 73 cents.
In the meantime look what other companies' share price have done; EBO from $4.82 to $9.60,TUA from $1.12 to $1.80,POT from $6.76 to $14,RYM from $2.07 to $6.76,SKL from.96 to $1.38.
While MLN SP has gone from .97cents to .73cents.
They have destroyed shareholders wealth.Your money is better invested elsewhere to obtain dividends and SP growth.
I repeat avoid MLN,as they are a serial under performer.

You should have thrown XRo in just for fun.

The constant dividend masks their performance. Unlike normal companies, the dividend is not paid from income but is a set amount, regardless of income or asset value.