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Final 05/06 Distribution ?

Discussion in 'Managed Funds & Index Funds' started by Smartypants, 2nd Jun, 2006.

  1. Smartypants

    Smartypants Well-Known Member

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    Any guesses as to approximately how much (percentage) the June distribution will be?

    Only early days I know but thought some of the mathematically inclined may have an early inkling.
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Well, given the volatility over the last week or so, I'm hoping for at least 3%.
     
  3. Nigel Ward

    Nigel Ward Team InvestEd

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    Given this will be the last distribution for the 05-06 Financial Year, the distribution will have to be whatever realised gains they've got...which like Sim I'm hoping for 3% too.
     
  4. Glebe

    Glebe Well-Known Member

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    I'm hoping it's minimal because I'm not in need of the income. I'd rather the capital gain. The income can wait til next year when the income tax rates drop.
     
  5. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Glebe - sounds like you are in need of diversification :D

    Hoping for capital gain from an income fund is going to leave you disappointed I imagine :p
     
  6. Glebe

    Glebe Well-Known Member

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    Yeah it's 34% of my portfolio. Probably too high, should probably be 25% tops for my situation.
     
  7. MrDarcy

    MrDarcy Well-Known Member

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    I know what you mean, but it hard to turn down income now when the CG may never happen. I have funds ready to go now, but not sure to buy NI units now or wait until next FY. I'll buy now, and so turn capital to income, only if the unit price represents good value. It is close, but market will have to drop some more before end of month. Tax is a consideration, but buying value is more important. Anyhow, with a 50% ML and capitalised interest prepaid for 12 months, I won't pay any additional tax, in fact there is a small refund.
     
  8. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Just thought I'd revisit this thread with some comments.

    For the final quarter, if the retail fund can distribute at least 4.61% and the wholesale fund at least 3.71%, then they will beat last year's distributions.

    That would be a good thing :D

    With the kind of volatility we're seeing at the moment, I'd be hoping to go pretty close to these numbers.
     
  9. MichaelWhyte

    MichaelWhyte Well-Known Member

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    I'm the opposite of Glebe. I'll take as big a distribution as possible so I can pay down my non-deductible debt on my PPOR mortgage. I'm in this fund because its a great way of using deductible debt (borrowings on the full amount invested) to pay down non-deductible debt (PPOR mortgage).

    Any profit above my cost of capital on my borrowings gets taxed at my wife's marginal tax rate and then gets paid off the mortgage. The only trick is that the fund needs to beat 7.3% annually for me to make any profit and to therefore put an extra penny off the mortgage. And it certainly looks like doing that for this financial year! ;)

    I'm tipping 3% as the retail distribution.

    Cheers,
    Michael.
     
  10. Glebe

    Glebe Well-Known Member

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    Well I wish you all the best hehe :)
     
  11. TryHard

    TryHard Well-Known Member

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    Sim, sorry, as this is probably my misunderstanding, but given the current :

    YTD return
    as at 21 Jun 2006 15.48%
    Last year return 30 Jun 04-05 22.43%

    wouldn't it hafta do like 7% to beat last year - or is the CG not counted in the YTD figures yet ?

    Pardon my ignorance (I've got plenty of it ;-) )

    Cheers
    Carl
     
  12. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    TryHard - I'm talking cash distributions, not total returns.
     
  13. TryHard

    TryHard Well-Known Member

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    ah yes hence the use of the term 'distributions' - sorry - missed that ... :p Cheers
    Carl