Managed Funds Navra Alternatives

Hi,
Has anyone come across a good alternative to the Navra income funds in terms of producing a good regular quarterly distribution?
I want to start putting some money to work in the market but want to avoid anything speculative or that uses internal gearing.
I am considering STW, does anyone have any better alternatives.
Thanks

 

I too have been looking for alternatives to Navra - mainly to do comparisons with a possible view of using a couple of different income sources rather than relying on one.

My aim is for a fund that pays distributions of about 10% per year, pays out quarterly, distributions relatively even in amount throughout the year, history of consistently produced distribution throughout the last 5 years, and with an aim to retain or increase capital value over the long term.

So far I've only come across:

Aurora Sandringham Dividend Income Trust (only distributes half yearly - don't think dividends have been as high, but has held capital value very well through the bad times - probably because a lot of the time they are sitting in cash).

Colonial First State Wholesale Imputation - can check put using Sim's CompareFunds website Has provided very good dividend distributions since about 2003 - before this time the fund didn't seem to provide much dividends at all and held it as capital growth. I don't understand why this is - however I've noticed it across a lot of funds - seems to be a marked difference in how they operated pre and post 2000/01. Maybe someone can enlighten me?

Vanguard High Yield Australian Shares Fund - Returned about 5% last year (with 105% franking level). Pays distributions monthly - although I've seen for some months the distribution has been zero.

Would be interested if anyone else has other things to compare against?

Regards,

Jason

 

Hi,

There is also the Zurich Equity Income Fund.

Cheers,

Dan

PS This is general information, before making an investment decision speak to your FPA registered Financial Planner.

 

Todays Wealth section in the Australian has a write up on the "Macquarie Australian Equity Income Fund". Sounds OK, except for being from Macquarie.

Interesting that the manager is not in cash as they "don't look to time the market"

I'll post a link if I find one.

Found one !

It's all about earnings at Macquarie Funds | The Australian

 

Hmmm, someone changed their name! This was once called "MQ Buy Write Fund" That name is more familiar. Now, why would they do that....

MQ Asset Management - Macquarie Australian Equity Income Fund

 

I'm putting my money into stock code OIF property fund..

quarterly rent paid on quality commercial property. income is fairly secure and not dependent on trading results.

also comsec gearing is 60% on this baby..

seems like today heaps of people and scrambling back into property funds!

still 18% PA yield but this has fallen from 20%+ PA due to pricing going up.. sale wont last on this one!!

 

I have also been looking at this. Seems they have been about 12%pa over the last 3 years (or so) which they have been operating. They hedge most of the general market risk to the down side, so have lowish volatility.

Fees are quite high, but the 12% return is after fees. And they have only been arround for a few years.

So seems like a good fund. I was thinking about buying some, but have not yet.

Thoughts?

 

Thanks for all your inputs so far guys. Some good looking alternatives that I shall be looking into.
I have also had this Aurora fund in mind. I see it has a ticker and can be traded on the ASX.
So whats the deal? Do you still have to fill in the application in the PDS or can you simply buy AOD units through Commsec ?

 

I am pretty sure you can do either. I guess that is to make sure it trades close to NTA. (but I have not bought any yet, so could be wrong)

 

is anyone here buying OIF today?

There seems to be lots of interest in it, 1.4 million on the buy and 200k on the sell.

This will be a 35c stock soon.

I picked up another 30,000 shares yesterday at 27c.

 

Zurich Equity Income Fund

Of all the managed funds mentioned in this thread, I find the Zurich Equity Income Fund most interesting. Trading methodology is completely different to Navra but perhaps this is good for diversity.

Unfortunately, with inception in May ’07, there’s not much history to go by. Sim, any chance that this fund could be included on CompareFunds?

 

Gapped down today on big volume...
Right now OIF = 16c.
Nice 'pick'...

 

yeh and the world is going to end as well.. may as well close up shop and live in the bush!

If there are idiots who want to offload at any cost, thats their problem. but as far as I'm concerned, the stock is good value, and has stable dividends. A news announcement just came out that they have 100% occupancy and over 10 year average lease with 63% of those leases woolworths. now if you think the company is going to fold with such stats, and now with a whopping 31% yield, and you feel you need to dump your stock at that price, then great, but I'm happy to buy them off you!

I will get my money back with 3 years dividends! and once some common sence comes back to the market, the capital value will return to where it should be.

I would be more worried holding the 'blue chip' CBA which is plummeting, and only has a 8% dividend. will take much longer to get your money back with this stock should it continue to fall! plus with all those bad business debts they are holding, prehaps the dividend will be reduced as well!

 

No worries than.

 

All this just contributes to my belief that the stock market is a big casino!

fundamental value really doesn't play a role in stock prices.

 

“All this just contributes to my belief that the stock market is a big casino!”

Stock Market is NOT a casino unless your decisions are based on luck and/or ‘gut feeling’.

“fundamental value really doesn't play a role in stock prices.”

I agree with you !!!

 

Hi CRC,

This is exactly what Malkiel says in A random walk down wallstreet...
Fundamental and Technical analysis is separate to the market expectations and the market runs on two things...Greed and fear. Right now there is alot of fear hence share prices dropping.

ASIC strongly warn against any returns of over 10% as they deem these as risky investments...MQG has a nice dividend yield at the moment as well, it would be prudent to expect that the dividend per shares is going to drop!

How to spot what's too good to be true: the rule of 72 - Australian Securities and Investments Commission

Cheers,

Dan

PS This is general information. Before making an investment decision speak to your FPA registered Financial Planner.

 

More and more I'm starting to think that the general theories of technical or fundamental analysis might offer some guidance in a nicely trending bull market, but in current conditions I don't think much analysis is making sense.

Seems to me there are too many influencing factors that swirl around... things like:

* Banks - uncertainty regarding exposure to CDOs, bad loans etc.
* Mining companies - game of cat a mouse between China and miners (China stockpiling deliveries, miners threatening to reduce production)
* Property Trusts - uncertainty regarding debt levels and valuations of property holdings
* Oil - battle between reduced global demand versus OPEC production limits to set price floor
* Oil - any unexpected hurricanes can affect price
* Gold - hard to understand, supposed to be hedge but seems to be sold off to recover cash? Don't really understand it...
* General - extend of CDO derivative market
* Ramant insider knowledge/trading that goes uninvestigated (case in point - GPT capital raising recently - massive counter trend selldowns prior to announcement)
* Media - easy work at moment, keep beating up the bad news don't have to do too much to make a story - feeds public fear (sentiment?) and keeps ball rolling
* General - ASX irrational reactions to US market - we usually take lead from US regardless whether our ecomonic/property/regulatory environment is similar or not
* Short selling - did seem to be targeting certain companies to beat them down -
* Oh, and don't forget - everyone's got a big stimulus packages at the moment - and they're not afraid to use them

Sure there would be many other influences - just some that come to mind. Point is, hard to see how anyone can make sense of all these powerful things and make a prediction with sufficient confidence to trade/invest. Buffet is probably most pragmatic, he just says it will be better in some years - buy now and hang on.

I'm seeing so many technical analysts drawing trend lines, moving averages, support/resistance levels, heads and shoulders etc. etc. but they have all been 'false signals' (euphamism for "I was wrong"). Similarly fundamentals talk about PEs, 'fair value', bad news factored in, NTA etc. etc. - but are wrong too.

Just some observations.

By the way, I'm bullish the market and think it's a wonderful opportunity - but trying to understand it difficult

Regards, Ilori

 

Ilori, basically that sums up my new forming opinion that the market is a big casino. You will have better luck playing black jack that picking stocks. Its not the stocks to pick, but the whole market.. You only need 1 bank to do something wrong, then they all follow in price.

To many variables, and picking them is near impossible.

Even if you do well over time, you need one crash at the end to clean up all your efforts.. I'm starting to think, pay off my house! at least I will have somewhere to live.