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Distributions

Discussion in 'Managed Funds & Index Funds' started by Jayar, 10th Jul, 2006.

  1. Jayar

    Jayar Well-Known Member

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    Has anyone else checked their on-line Navra investments for distributions this past quarter?
    I have, and I'm pleasantly surprised.:D :D
    Percentage, or cents-per-unit, I'm not sure of, but the dollar value is great!
    Jayar
     
  2. MrDarcy

    MrDarcy Well-Known Member

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    I've been checking a silly number of times a day, but still no news :( :(

    Tell us more !
     
  3. MichaelWhyte

    MichaelWhyte Well-Known Member

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    Yep,

    I got nothing either. Just checked their website and still no numbers posted, and my bank account still isn't showing the distribution paid.

    Patience grasshopper....

    MW
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    I suspect they're a couple of days behind in calculations due to the first two days of the fin year being a weekend.
     
  5. Tropo

    Tropo Well-Known Member

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    Distribution is scheduled for the next week.
    Keep $$miling.
    :p
     
  6. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    Yeah, keep smiling, cause those smiles are only going to get bigger. Very nice distribution indeed and that's all I'm gonna tell ya!

    Mark
     
  7. Bob

    Bob Well-Known Member

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    Big Distribution

    Sounds like a 4 percenter

    Bob



    You never go broke when you have a bob in the house
     
  8. Tropo

    Tropo Well-Known Member

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    :D :D :D :D
     
  9. MrDarcy

    MrDarcy Well-Known Member

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    T E A S E R S !
     
  10. gad

    gad Well-Known Member

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    Investoserve
    https://www.investorserve.com.au/EXEC
    is currently showing todays redemption price for the American fund.
    It is also showing the new amount of units for the Australian fund if you have your distributions reinvested, although at the moment it is still showing the end of last quarter price.
     
  11. SydneyCider

    SydneyCider Member

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    I'm sure my web administartor in the office will be reporting suspicious activity soon, as I keep checking the webpage so frequently throughout the day.

    So far no indication in my investorserve account either.

    Not sure what's actually involved in calculating this amount ? Isn't it automated somewhat ?
    My Colonial FS and Perpetual accounts had their distributions listed at the end of last week.
     
  12. pthm

    pthm Well-Known Member

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    Just checked our bank account and nothing either! :(
     
  13. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    Hey fella's, don't forget that NavraInvest is a tiny minnow compared to the big fish like Perpetual and Colonial.

    Mark
     
  14. handyandy

    handyandy Well-Known Member

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    I really don't see any reason for a delay in finalising a distribution. At the close of business all elements necessary for the calculation should be known and in this day and age any respectable computer program should be able to give the required figures within a day (and I am being generous here).

    As I am not reinvesting my distributions the daily cost of the delay in the distributions is worth about $50 per day.

    Cheers

    ps I will be discussing this with Bill when I finally catch up with him.
     
  15. MichaelWhyte

    MichaelWhyte Well-Known Member

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    Andreas,

    For me its only about $5 a day but I agree. That's the amount of interest I'm incurring that I could otherwise be offsetting with the distribution paid into my mortgage offset account.

    However, remember that whilst its not paid out it is still invested in the fund, so is still earning you a return. So long as that return in the fund is beating my interest cost on my mortgage, the "opportunity cost" of not having it paid out is actually zero (or negative to be precise).

    So unless you can do better with the cash than the fund can, and hence your opportunity cost of $20 is accurate, then don't sweat the delay.

    Cheers,
    Michael.
     
  16. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Not sure how you figure it is still earning you a return ?

    The distribution is calculated based on the unit price at the end of June 30. Neither the distribution, nor the unit price will improve by NavraInvest holding onto it longer, regardless of the performance of the fund in the interim.
     
  17. MichaelWhyte

    MichaelWhyte Well-Known Member

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    Sim,

    Navra still have those funds invested and growing as we speak, so I figured that growth is reflected in the individual unit holdings of each member. So, in reality, I should still be getting growth on my current holding (pre-distribution) whilst they fiddle around trying to figure out what the distribution is. In effect, until it is paid out, it is the equivelant of having re-invested the distribution over this period.

    IF, however, they have somehow corralled the unit price as at 30/6 and you're getting no growth from that point, then we are being diddled out of unit growth at the same time as we are not offsetting our loans or whatever other use you might put that cash towards.

    Either its in the fund or its off my mortgage, I'm not at all comfortable with the concept of it being in limbo for weeks doing nothing. That's a huge opportunity cost!

    Cheers,
    Michael.
     
  18. MrDarcy

    MrDarcy Well-Known Member

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    The money is somewhere, and that somewhere must be earning a return for someone! It would be in the the fund's "cash management" account I guess pending distribution.

    I guess the distribtion has to be audited somewhat first before being paid, this may take a little longer than for the other big firms. No problem there, I prefer to keep the funds running costs down and enjoy the lower management fees.
     
  19. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    The calculations are always performed as at June 30.

    If you choose to have your funds reinvested, then the calculation of the unit price you are purchasing at is based on the post-distribution price, and if you look back at historical unit prices, the purchase price for reinvested distributions is actually the non-spreaded (can I make that term up? :D ) unit price from the day following the distribution (ie the first day of the following quarter). This means that you do indeed get the benefits from day 1 - no matter when the distribution is actually "recorded".

    However, for cash distributions, it is still calculated based on June 30, but the actual amount of the distribution won't change in the days or weeks following.

    The question about what happens to the money set aside for distribution in the interim would be best answered by someone from NavraInvest, but I guess it would be in a Cash Management Trust or similar - and hopefully earning some returns - but those returns wouldn't be included in the distribution (you haven't earned them yet - this is a new quarter) ... at best I would imagine that they are included in the overall net asset value of the funds, which would have a slightly positive impact on the unit price - but that is shared across all unit holders (including those who chose to have funds reinvested and not paid as cash).

    But we're talking - what ? 4% ? 5% annual return on that cash ? ... that's no more than about 0.01% daily return ... not much to write home about, and quite possibly less than your typical margin cost of finance.

    I would like to see cash distributions paid more promptly - as already mentioned by other people, I don't think there is much excuse for it these days - but I guess if banks still insist on 3-5 days before clearing a cheque, technology hasn't really helped the finance industry all that much yet.
     
  20. pthm

    pthm Well-Known Member

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    Hear, hear! I agree. Like most of you, we are waiting for the distribution to lighten our interest bill on the all the IP mortgages ... But, I guess, the delays are probably due to the requirements for the calculations of the distribution to be audited? And, this could take a while - say 2 weeks.