Fonterra Shareholders Fund

[Beagle]

http://www.sharechat.co.nz/article/f...structure.html

Why anyone would bother to be a shareholder is beyond my comprehension. Good luck to holders, you'll need it !!

[winner69]

I do understand why the Fonterra Shareholder Fund is good for farmers. They can eat their cake and keep it too.

However I do not understand why anybody would have wanted to buy shares of this fund - hey, and there are still people queuing up to buy them, though at a somewhat discounted price.

Holding these shares is a clear lose-lose situation. And even if we look at historic payouts (I think 30 cents per share and year) ... why pay $6 for a share providing a (not guaranteed) 30 cents dividend? this used to be just 5% (in good times); Obviously - this year is worse ... only 10 cents payout, but who knows - it might be still better than the next ;

Foreign fund managers loved FSF when it was launched and bought heaps of them - NZ's biggest company, exposure to the dairy industry and a great dividend for them when interest rates were so low for them. Solid company / good earner attractive to those managers

Suppose a lot of that logic still applies but possibly not as attractive as it was

[Beagle]

Foreign fund managers loved FSF when it was launched and bought heaps of them - NZ's biggest company, exposure to the dairy industry and a great dividend for them when interest rates were so low for them. Solid company / good earner attractive to those managers

Suppose a lot of that logic still applies but possibly not as attractive as it was

They must be ropeable about the current situation then.

[BlackPeter]

Foreign fund managers loved FSF when it was launched and bought heaps of them - NZ's biggest company, exposure to the dairy industry and a great dividend for them when interest rates were so low for them. Solid company / good earner attractive to those managers

Suppose a lot of that logic still applies but possibly not as attractive as it was

Good points ... but I guess this narrative only holds for foreign funds as long as the Kiwi dollar is rising. The current (and expected further) drop is unlikely to keep their clients happy ... and the heavily curtailed dividend won't help either.

[Chanchay]

Only Fonterra could lose $200M on an investment of $405M selling infant formula to China and then say they are the envy of the dairy world.

God this is a great comment. Imagine if they had put that 200m into a2milk at the time instead

[macduffy]

God this is a great comment. Imagine if they had put that 200m into a2milk at the time instead

Imagine if the dairy farmers would have allowed that!

[bull....]

must be something in the milk eh lol

what a shocker , more write downs coming , cost cutting etc looks like a sh.. yr next as well bit like fletchers lol must be something wrong with some of nz big corporates you get some good ones and some shockers .... board composition?

[winner69]

“There’s no two ways about it, these results don’t meet the standards we need to live up to. In FY18, we did not meet the promises we made to farmers and unitholders,” says Mr Hurrell.

[BlackPeter]

must be something in the milk eh lol

what a shocker , more write downs coming , cost cutting etc looks like a sh.. yr next as well bit like fletchers lol must be something wrong with some of nz big corporates you get some good ones and some shockers .... board composition?

“There’s no two ways about it, these results don’t meet the standards we need to live up to. In FY18, we did not meet the promises we made to farmers and unitholders,” says Mr Hurrell.

No surprises here.

[kiora]

must be something in the milk eh lol

what a shocker , more write downs coming , cost cutting etc looks like a sh.. yr next as well bit like fletchers lol must be something wrong with some of nz big corporates you get some good ones and some shockers .... board composition?

& CEO?This time it will be different!Yeh right !