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Dec. Distribution ?

Discussion in 'Managed Funds & Index Funds' started by MJK, 21st Nov, 2005.

  1. MJK

    MJK Well-Known Member

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    Any early hints about how the Retail Fund December distribution is shaping up?


    MJK :)
     
  2. Nigel Ward

    Nigel Ward Team InvestEd

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    Won't it depend whether you've been naughty or nice as to whether Navra Claus makes a healthy distribution :D
     
  3. MrDarcy

    MrDarcy Well-Known Member

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    And Navra Claus is soooo much better than that Santa fellow because he comes 4 times a year :D
     
  4. MJK

    MJK Well-Known Member

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    Thanks Guy's, :p

    Actually I'm curious given the more volitile quarter this time round, Navra should in theory be loving the volitility but comment to date says dont expect the same high results as the last quarter........ seems inconsistant?

    MJK :)
     
    Last edited by a moderator: 21st Nov, 2005
  5. Tropo

    Tropo Well-Known Member

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    " Won't it depend whether you've been naughty or nice as to whether Navra Claus makes a healthy distribution".

    Nigel...

    It's not easy to be a Santa those days.... ;)
    :cool:
     
  6. Steve Navra

    Steve Navra Well-Known Member

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    Hi MJK,

    Nope not inconsistant . . . see answer to "Navra fund performance post"

    We sure are enjoying the volatility and this will translate into a good result as we realise profits.

    In practical terms, we have paid out approx 5.5% and the total performance as at tonights close is 9.37% . . . so there is an excess of 3.87% less the perf fee available. (At this very moment)

    However, approximately 75% of the actual return is usually realised and passed on as a distribution so:

    9.37% x 75% = 7.02% less perf fee and less 5.5% already paid.

    So if the distribution was calculated now it would approximately = 0.97%

    Fortunately there is still another 6 weeks of trading and profit realising potential to go :cool:

    I predict that the distribution this quarter will be in the order of . . . oops, sorry I am NEVER predictive :p

    Regards,
    Santa
     
  7. Glebe

    Glebe Well-Known Member

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    I'm really glad I'm in this fund. I love the quarterly distributions even though all I do is reinvest them. Given that my investment timeframe isn't that long (1-2 years) there's a pretty good sleep at night factor in knowing the next payday is only ever 3 months away.

    Hopefully we can get over 3% for this quarter, than over 5% in the next. Also, lets hope the market keeps rising so we get some good capital gains.
     
  8. redrover

    redrover Well-Known Member

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    I dont get it Steve!!

    In the first quarter the fund was at 10.5% approx and distributed 5.4%. Therefore starting October the fund was at 5% approx. and is now at 9.3% approx. therefore all of the 9.3% (or wherever it ends up at Dec) should be available for distribution. If you say that again this 5.4% has been distributed this is double dipping is not it! If you have distributed it in the first quarter it is off the books as far as I can see and the next quarter has to stand on its own merits starting at the 5% level or wherever it ended. I dont see how you can keep adding back in the distributed amount from the previous quarter before working out how much to disburse for the next quarter!?!? :confused:

    If each quarter is volatile and drops back significantly after the distribution amount and has to start again at the 5% (!) level and works back to the 9-10% at the end of that quarter available for distribution, then theoretically the distribution for a full year should be about 20%!?!!? :rolleyes:
     
  9. TryHard

    TryHard Well-Known Member

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    Um, I'm not arguing, just questioning - but isn't the distribution based on the Year To Date performance of the fund and the returns paid out YTD ? So if you have

    Current performance YTD :
    9.37% x 75% = 7.02% less perf fee
    If at Q2 you are owed the abovementioned 7.02% less perf fee, why wouldn't the 5.5% you've been paid in Q1 count as part of the YTD returns you are due ? (don't companies include the dividends already paid to shareholders when calculating the next distribution?)

    If you had not received the 5.5% distribution (even though that would not be possible the way the fund operates - and thank god, 'cos I for one need the quarterly income :) ), would the current YTD performance not be something like :

    14.87% x 75% = 11.15% less performance fee ?
    Meaning you'd be owed at this current point, a greater amount than if you combined the previous 5.5% and the current returns due ?

    But on the other hand, the same calculation above could work against you, depending on the fluctuations in the performance of the fund ? And you would have missed out on the Q1 distribution and the income it generates.

    Wow, I managed to write all that and not ask anything like a sensible question.

    I guess my short statement would be - who cares ? as any growth not distributed to you over the year will come back to you as a unitholder in the form of capital growth, if the current performance continues ? Then I suppose the answer to 'who cares' would be those who have a timing issue that causes them to need to redeem units before the full potential income and/or growth is realised ?

    Roll on more upward pointing red lines on http://www.navrainvest.com.au/index.asp?content=fund_perf_retail - I don't care how the results get paid to me, so long as they reach me eventually :)

    Cheers
    Carl

    PS I noticed today the Asset under Management: $93.41 million - bloody great work Steve and the gang :D
     
  10. Alan

    Alan Well-Known Member

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    ???

    So I wonder what the Quarter's Distribution will be?

    I would think based on the way the Market went at the end of the month, more than 2% should be achievable.......

    I'll take a stab at 2.4%.......
     
  11. Bob

    Bob Well-Known Member

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    We do this every 3 months

    I'll have a go......2.5percent, right on target for 10percent annualised


    Bob
     
  12. perky

    perky Well-Known Member

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    A few days ago I took a stab at 2.4% in another post...so lets see what it ends up at !!
     
  13. gad

    gad Well-Known Member

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    I was just talking to someone at NavraInvest in relation to distributions ..........
    evidently this distribution is more like 2.7%.
     
  14. Alan

    Alan Well-Known Member

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    I'd LOVE to be wrong a bit more in your direction gad! :D
     
  15. Glebe

    Glebe Well-Known Member

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    I don't need the cash now, so I'm not fussed whether it's high or low. At the end of the day it's not anything more than a conversion from capital to income is it?
     
  16. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Correct Glebe - it doesn't pay to get too excited about the distribution - unless you need cash.

    All you are getting from a distribution is your money back that has accumulated in the unit price throughout the quarter (as a result of capital growth and trading profits). If you have a margin loan, you can effectively tap into this increased value at any time (by borrowing against your holdings) - no need to wait for the distribution.

    However, if you don't have a margin loan, and could use the cashflow - then distributions are wonderful things :D
     
  17. gazza

    gazza Well-Known Member

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    For those that haven't seen the Navrainvest website today, December distribution is as follows:

    Retail 2.53% (2.7 cents per unit)

    Wholesale 2.61% (2.8 cents per unit)

    So the first half of the year has returned over 8% which should cover all borrowing costs for the year meaning any distributions for the next half is pure profit :)
     
  18. Glebe

    Glebe Well-Known Member

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    Thanks Gazza.
     
  19. TryHard

    TryHard Well-Known Member

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