Managed Funds Navra fund performance

Just checked the performance rate of of the Navra MF- still negative and we are half way though the quarter- is it possible that the distribution this coming quarter will be less than the interest that has been paid on loans? making it a negative result- anyone else concerned about this? should I be worried?

 

In general I guess Sim is referring to your overall portfolio, eg if a particular managed fund performs poorly then there should be enough buffer in your portfolio to cover it.

At a "micro" level I think most people would also ensure that each investment has a built in buffer to some extent. Eg, for Navra you can margin loan up to 70% but most would suggest you only go to 50%. Unless it's a catastrophic downturn then this 20% buffer should mean any "temporary" poor performance in the fund should be able to be absorbed by the margin loan without impacting the rest of your portfolio significantly.

John.

 

The next quarters distributions should include a small of dividends - most companies pay Aug/Sep/Oct with a following drop in index. If I look at last years payment approx 14% was made up from fully franked dividend payments

Rgds Kevinb

 

Thanks all for the reassurance. Kevinb where do you see the franked dividend component that you mention? I have just checked my statement and the Navra site and can't see where you get that info. Thanks

 

Appears on statement for end of financial year - posted out last last couple of weeks

 

coastal,

Might I suggest that if you have some spare cash around, you *might* like to think about buying some more units. Pretty cheap I reckon (taking a long term 10 years + view). That's what I've been doing and only wish I had more to put in.

Mark

 

Coastal -

There's a similar thread here :
http://www.invested.com.au/forums/7/value-holdings-down-1103/

... no one should be worried, because if a couple of months performance is enough to change our mind about the l-o-n-g term investment vehicle, we're in the wrong vehicle ;-)

If the potential of the unit price dropping further will break ya bank, you should probably sell everything now - there'll be plenty of other cashed up people jumping in while the unit price is at 'bargain' levels.

But without a crystal ball, no one will know who was right or wrong. Enjoy the ride ;-)

Cheers
Carl

 

The thing im interested in is when the market takes a REAL dive ... and it will happen.

I understand the system will buy like crazy, but what about all the peeps that will abandon ship??

Will be interesting to watch anyway.

I always viewed Steves system as something that a disciplined trader could make serious money from .. but what about fickle investors not in tune with the real power of the dips??

T.

 

Hi Tom

I reckon you're right - anyone who jumps ship in reaction to a huge drop in the market could well and truly stuff themselves up.

I'm one of the undisciplined / fickle types - but have left money in NI since its inception and watched more than acceptable returns in market conditions which are not really meant to suit the NavTrade system ... so while I think that's great, I'm wondering if that means the returns will definitely be better in a much more volatile market. And in a plunging market, if the fund buys madly, I may not always be in a position to wait for a resonable unit price before I need some of my cash back.

I know the US Fund was meant to suit NavTrade system much better but the early signs of returns aren't too promising, which I gather (in complete ignorance, admittedly) is due to exchange rates etc, plus I guess they don't have a huge pool of cash to play with yet to capitalise on buying opportunities ?

For a dummy like me, I'm happy to hang on and enjoy the ride, in the Australian Retail Fund (which I may know little about, but I understand it better than all the US variables ) within reason - I figure there are far more knowledgeable people managing the situation who have more to lose than me ... so for that reason I don't wake with cold sweats. Yet

Cheers
Carl

 

Hi Mark,

Please don't take this the wrong way, and even though I agree with you, do you feel that as a Navra financial planner that giving this sort of "advice" may be viewed by some as biased.

I'm not saying this to accuse you of anything - I'm just curious as to where you see the line between your job and participating in this community. With a lot of focus on financial planners recently I would have thought you have a pretty fine line to walk sometimes.

John.

 

I know Mark pretty well and I've never seen him use his contributions on the forums to tout for business for NI. I imagine his advice is exactly what it looks like at face value - a personal opinion that the unit prices look like excellent value at the moment. Of course, Mark doesn't need me to speak for him ... but that's my $1.06 worth ;-)

 

Yes, I know Mark is a valuable contributor to the forum as didn't mean to imply he was touting. I guess my question was more about whether he finds it challenging to limit what he wants to say because his personal opinion may be taken as professional advice.

John.

 

If anyone takes a post on the forum as professional advice, given the number of 'This is a general comment only and does not constitute advice. Before making financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.' footers on everyone's posts, then realistically the person relying on that advice might have other issues they could deal with first

 

Johnnyb,

"I guess my question was more about whether he finds it challenging to limit what he wants to say because his personal opinion may be taken as professional advice.

John."

John,

As you know people ask questions and expect some answers (or personal opinions) which in some instances may sound like an advise.
Don't you think that to some extent accepting somebody's private opinion may become an advise to you, especially if you regard this person as knowledgeable on the specific topic?

 

Hi John,

No worries mate! Firstly, let me just quickly point out here that I'm not a financial planner (yet!), I'm a paraplanner. But yes, I do work for Navra in a financial planning position.

When posts do come up relating to Navra, I do try to be very careful about what I say, as I don't wish for anything to come across as being biased or trying to encourage anyone to blindly put money into the Navra funds. I wasn't trying to encourage coastal (or anyone else) to put money into the funds, if that's the way it came across, that's not how it was intended. In my view, I simply made a suggestion that it's something he *might* like to look at as a possibility.

As stated in my post, I've been putting money into the fund at present as I believe it offers a good buying opportunity, when looking at investing long term. I certainly would not make the suggestion if the person was looking to invest short-term!

Hope that clears up some things for you.

Mark

 

Yep, still negative this quarter but would have got a nice little lift from today's solid 90 point gain. As has been said repeatedly, the trend for now is sideways.

Attached is my latest performance tracking chart. The fund is still lagging the index over "my" investment timeframe, but not by as much as it has previously. That little bit of lag over the last month is interesting (red trendline of underpeformance added). I would have thought this sideways volatility would have suited a trading fund but clearly it doesn't.

Ah well, its all still positive for me since I bought in so that's all good.

Cheers,
Michael.

 

"The thing im interested in is when the market takes a REAL dive ... and it will happen."

Tom&Don,

Possibility of the break below 4680 level still exists. If this happens XJO may go down to 4370.
Today XJO broke up tight range, but if XJO breaks above 5140/50 the market may become bullish again.
Until than, market will still remain bearish (imho).