Managed Funds Navra 4th Qtr distribution

My Navra FA said on the 6th of this month:

"The estimated last quarter distribution from Navra is between 5 and 7%
(depending on what happens this month) which will certainly lower the"

Cheers

 

Sounds good gad, I'm looking forward to it!


Is your FA's quote cut off mid-sentence, or was that intentional??

Chris

 

That was intentional Chris.R. I am selling off some Navra Units & we were discussing the Capital gains implications & the lower selling price after the distribution.

 

I'd certainly be happy with 7% ... will certainly help with future PPOR

 

gad

How come if the performance has been so good this quarter you are selling off some units? Are you planning to buy again after the distribution? I would have thought the final distribution for the year would be at least 8.5% given the large rise and frequency of trading over the last couple of months. That still leaves plenty in the "buffer" to start off again next quarter.

 

G'day Redrover

As I have always reinvested the distributions (income not needed) I am moving app. 40% over to a few high growth funds recommended by my FA. This is not only to get the money into some high growth funds but to diversify into other markets as well. I will also be buying another neg. geared IP in the near future & I will need some income from the Navra fund.

 

Is CFS Australian geared share fund on the cards?

 

this is something i have wondered why people do...

if people dont need the income then why invest into an income fund? why not invest into a growth fund where you may be able to gain a little bit from not always paying tax....

is it because you like the investment style or is there something else that im missing???

 

gad - can I ask if your FA was from NFS ?

 

DaveA - I am not sure anyone is investing in an income fund if they don't need income.

In our situation the income fund is helping fund our IP portfolio. In this case the regular income is key. Agree that the real growth comes from CG and not income.

Longer term I would definitely consider growth funds. Our priority is to build a sufficiently large capital base to achieve financial independance.

 

I guess I'm one of these people. Initially I invested into Navrainvest because I had a short horizon and thought Navrainvest was a good risk/reward mix for my timeframe. It's one of a few managed funds I've invested in.

 

i would know the distributions would be great for IP portfolios, but when it is always re invested then its a different story...

Im not knocking income funds at all (espically the returns there getting) however i just wonder why its just not a normal growth fund people are interested in...

 

Sorry Guys, been very busy.

Voigtstr: Is CFS Australian geared share fund on the cards? No.

DaveA: As well as a lot of other stuff, I used to read all the post I could that Steve posted on the forums. The Navra fund was the first fund I'd invested in (had 2 IP's & refinanced PPOR to invest in Navra fund). It was after that, that Steve became my FA after I attended a unit holder meeting. He suggested that I build up my holdings in the fund prior to purchasing the next IP. That was of course to give me ample income to cover the holding costs of another neg geared IP. As yet I have not bought that next IP (though I hope to soon). PS Steve is no longer my FA as he is busy enough with Syd. clients.
I have been able to get by without income from the fund, paying all the interest & tax from wages, the first two IP's are now pretty well neutrally geared. It's certainly big enough now at $1.1M to start doing other things.
(I can stop being such a tight arse )

The Navra fund will still be app. 60% of the funds portfolio after getting into the new funds & paying deposit on new IP. This fund gives plenty of exposure to the top Aussy Blue chips.
The other funds will give the portfolio diversification/exposure into International shares, International property, broader mid cap Aussie companies, growth ect while the Navra fund will cover any shortfall I have in income.

Here_To_Learn: Guess the above answers your question. I did state that in my original post as well.

 

IP in Sydney

Gad,

What areas are you looking at in Sydney? I am thinking of purchasing an IP here in Sydney, I am not sure where to start...

Thanks

 

Lenders do like to see income if you want a standard loan. Either pocketed or reinvested it still shows as income for the year, just one way grows you more income if you can wear the holding costs...

 

Doh !

Something tells me I must slow down !

 

Brisbane Liverpool_St
Looks like I have missed out on a new development in Banyo but hope to get into another coming up in Manly (Brisbane).

 

gad- can I ask if you are going thru NFS for your IP search in QLD ?

 

"Looks like I have missed out on a new development in Banyo"..

Gad,

Just bad luck !
Banyo is quite amazing story!. Actually I am waiting for settlement (second month in the row. ).

 

Tropo, is this a new estate ? Is there a website ?