Managed Funds 1st Quarter Distribuition

I think of it in terms of reinvesting my distributions each quarter. If this is done then your total holdings will increase. Asssuming the unit price reverts to close to $1 at the start of each quarter then the growth in the number of units is how I would measure the performance of the fund over a long time frame.

Of course, if you're not reinvesting the distributions then it you won't be able to measure this for your own investment.

John.

 

IMHO
It's an income fund set up for Mum & dad investors.
The unit price is still well above the original price.
IMHO the fund (Aussie) could still pay an app. 2.5% distribution this quarter.
If the unit price drops a couple of cents because of it, so what, the investors are still getting their distributions & the fund has still achieved some capital growth (above the original price).
When the fund is performing better they can/will keep a little more to catch up on that cap. growth but the unit holders will still get their distributions.
As for those of us that re-invest the distributions, the distribution itself will make no difference to the value of our holdings what so ever.
We are getting back to near early quarter values & with another month to go before the end of the quarter the fund may well be in a position to pay that
2.5% distribution without having to reduce the CG component by much at all.
Time will tell.
That's the way it goes, no need to panic (though I do admit to some sickening stomach feelings at times myself around early August ,
gotta stop this constant monitoring, it's killing me )

 

I'm wondering how leveraged/committed some of you guys are, that are sweating on every distribution percentage point? It's seems a little concerning...

 

Glebe

With Investment loans & capitalized interest on the margin loan, I'm paying app. $200 per day in interest.

Hence this earlier comment

 

Thats impressive! Funny how i am striving to owe enough money one day to have to pay such an interest bill

 

He He, Would be better than being a poor nervous wreck.

 

Back of an envelope calcs tells that'd be about $5 million debt!

 

G'day Sim,
I know it's none of my business so treat this that way, just curious....
From the first quoted statement above, are you expecting your leveraged assets to at least double at the same time or are you anticipateing the assets will grow enough in that time to assume your borrowings will be at that level at that time?
Hope that makes some sense, I've had a few (Helps with the nervous wreck scenario)

From second quote above, app. 3.65m debt..... assets worth ?

10% Interest also seems pretty high but I'm assuming you may mean that that's what you think you will be paying towards the end of next year when you may be paying app. $1000 per day interest, would that be right?

Just curious. Thanks.

 

Thanks Sim

A very comprehensive reply, for which I am grateful. Thanks again.

 

There was an article yesterday on page 35 of the Finanical Review by Corrine Lim which is very relevant to any discussion of the NavraInvest dollar cost trading methodology.

The article discusses the fact that both global and local sharemarkets have since 03 until the early part of this year experienced volatility well below the long term average.

Looking at the graphs they suggest that the daily percent change in the month over that period has been around or below 0.4% whereas the long term average is around 0.6%. June was 1.1%, but july and august are back around the long term average.

For a system that trades volatility, I think those are very significant figures to bear in mind. he article suggests a flare up in volatility is more likely than continued docility...food for thought.

Cheers
N

 

So good times ahead for the fund...we hope

 

Perhaps slightly off-topic...but has anyone else noticed that the 'Performance Fee' figure seems to have disappeared from the Performance Table on the NavraInvest website? Perhaps the constant zero numbers was proving too unsettling for the shareholders?

 

As the performance fee is now charged based on quarterly results (http://www.navrainvest.com.au/index.asp?content=fee), I doubt its meant to hide past nil charges. There's plenty better ways for NavraInvest to communicate with shareholders than by 'selective publication' on its retail website.

If you're a unitholder or shareholder and are concerned there's something crucial missing, I'm sure you'll find emailing [email protected] will get a good result

Cheers
Carl

PS. I'm a shareholder, and I'm not concerned about the previous lack of annual performance fee at all ... the investment suits the criteria under which I judged it and it would take some convincing to make me believe Navra Invest won't continue growing from this point. When we invested some people said NI would never get $50M FUM, so they were wrong 3 times over

 

I have sometimes wondered if the Fund could take advantage of low volatility by selling options on the funds, at the prices and quanties that the trading algorithm would buy/sell any way. This is not my idea. One of the traders in one of the 'Market Wizards' books (the Black guy fom New York as I recall, if it isn't politically incorrect to say so) uses it .

 

Hi Jen

Whilst I can't speak for NavraInvest, I suspect Steve's response would be "well we could but that's risky and involves gearing". He's actually very conservative when it comes to trading shares with "Mum's and Dad's" money.

Cheers
N.