Managed Funds Navra Fund - Qtr 1

Discussion in 'Shares & Funds' started by ActiveTrade, 31st Aug, 2008.

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  1. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    Active Trade, best to speak to your adviser on that.

    Mark
     
    Mark Laszczuk, 11th Sep, 2008
    #41
  2. seaview

    seaview Well-Known Member

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    Cash Holdings influence distribution, don't they?

    I would dearly love the distribution to be at least 2 to 3% but am not holding my breath.
    Why? Even though market volatility is great for the fund, this is only beneficial if they have sufficient cash to buy lots of shares.
    BUT I suspect they may be like a lot of investors.... stuck with shares bought at a higher price which they prefer not to sell now as they would cop a loss.
    I seem to recall they were getting low in cash when the market was really bad, so I cannot see how they could recover enough cash to keep buying significant amounts of shares and take advantage of this volatility.
    I hope someone can prove me wrong and tell us they have/had lots of cash, and have been buying up big. :cool:
    Cheers
    Seaview
     
    seaview, 11th Sep, 2008
    #42
  3. Simon Hampel

    Simon Hampel Founder Staff Member

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    There is no concept of "prefer" in the NavraInvest fund trading system.

    It is an automated system (meaning it tells them when to buy and sell) which suggests trades based on market movement and progressively sells as the prices go up, and buys as the prices go down.

    What will have been happening over the past few weeks is that on days when the market drops sharply, they would be buying some more of those stocks which have dropped, and on the days where the market recovers, they will start selling to realise a profit. They can keep doing this over and over to realise significant profits from a market that is mostly going nowhere.
     
    Simon Hampel, 11th Sep, 2008
    #43
  4. ActiveTrade

    ActiveTrade Well-Known Member

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    Yup ... in a few weeks. Just thought you may have been able to comment prior to my meeting.
     
    ActiveTrade, 11th Sep, 2008
    #44
  5. voigtstr

    voigtstr Well-Known Member

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    Are current market conditions a good test for the system? I hope the volatility is reflected in the size of the distribution :)
     
    voigtstr, 11th Sep, 2008
    #45
  6. Simon Hampel

    Simon Hampel Founder Staff Member

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    As of Tuesday, the index is about 3% down for the financial year, while Navra AUS retail is actually slightly positive for the financial year.
     
    Simon Hampel, 11th Sep, 2008
    #46
  7. MJK__

    MJK__ Well-Known Member

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    St George have really dropped the ball. A few years ago I would have sworn by them but recently I took 400k business away from them . I also set up new buiness with ANZ for for 880K which had ST George returned my call could of had.

    I was a St George customer back in 95 when they only had one office in Melbourne as they where just trying to get a foot hold. Forget loyalty to them after the way I was treated.:confused:

    I still have 600K with them but they wont get anymore.


    MJK
     
    MJK__, 12th Sep, 2008
    #47
  8. OLI__

    OLI__ Well-Known Member

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    From news.com.au:
    Shane Oliver of AMP Capital said: "I have never seen such volatility in the market. Huge companies worth billions of dollars rising and falling by 5 per cent or more in a single day."

    You would expect a very good result from Navra if they do have the cash.
     
    OLI__, 19th Sep, 2008
    #48
  9. Simon Hampel

    Simon Hampel Founder Staff Member

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    The gap between NAV0001AU and STW is out to 4% ... the only real question is how much realised profit they have actually achieved given the market is down 7% for the quarter.

    Compare Funds
     
    Simon Hampel, 19th Sep, 2008
    #49
  10. ActiveTrade

    ActiveTrade Well-Known Member

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    Sim, silly question ... what is STW mean ? I checked glossary but no luck.

    I am hoping this upswing translates to divident $$$'s. Yesterday I thought for the first time I would have to carry out a fire sale on some units :(
     
    ActiveTrade, 19th Sep, 2008
    #50
  11. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    You don't have a buffer? Ruh-roh!

    Mark
     
    Mark Laszczuk, 19th Sep, 2008
    #51
  12. Simon Hampel

    Simon Hampel Founder Staff Member

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    STW = the ASX code for the SPDR ASX200 Index tracking ETF
     
    Simon Hampel, 19th Sep, 2008
    #52
  13. Simon Hampel

    Simon Hampel Founder Staff Member

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    I'd say he probably did ... just that the market dropping 30% has a rather bad effect on buffers!
     
    Simon Hampel, 19th Sep, 2008
    #53
  14. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    But buffers are kept in a LOC, not in the margin loan. Well, they should be anyway.

    Mark
     
    Mark Laszczuk, 19th Sep, 2008
    #54
  15. voigtstr

    voigtstr Well-Known Member

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    why please? (disclosure: I have no margin loans to worry about at the moment)
     
    voigtstr, 19th Sep, 2008
    #55
  16. Simon Hampel

    Simon Hampel Founder Staff Member

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    Maintaining a sufficiently low LVR on your margin loan gives you a buffer that is both more effective and better value ... margin loan generally has a higher interest rate than LOC.

    Not to say you couldn't also use a LOC (or saving account, etc) for additional buffer. Personally I don't like LOCs, but that's another issue.
     
    Last edited by a moderator: 19th Sep, 2008
    Simon Hampel, 19th Sep, 2008
    #56
  17. ActiveTrade

    ActiveTrade Well-Known Member

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    Mark, issue is that I am stuck with Navra warrants. You CANNOT actively manage your LVR like a margin loan.

    I have discussed this at length with Steve and team. Steve's point is that the loan ABN offers is a non-recourse loan. In a bear market this is always safe.

    As soon as the market turns around I think I would be better off in a Margin Loan scenario. I could negoitate a better % rate and be able to play a more active role with my LVR.

    We do have a buffer ... like Sim said ... when the mark drops as much as it has it's huge.

    We have a substantially large investment in the fund.
     
    ActiveTrade, 19th Sep, 2008
    #57
  18. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    Oh! Well that makes sense. I didn't know you had a warrant.

    Mark
     
    Mark Laszczuk, 19th Sep, 2008
    #58
  19. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    I don't maintain (or rather, I don't rely on) a buffer in my margin loan. The value fluctuates way too easily and you could see yourself in a serious predicament very quickly if you are not careful. Keep in mind that I am very aggressive with relation to margin. Also, if you need quick cash for an emergency (which is what buffers are generally for) taking money from a margin loan makes splitting deductible and non-deductible debt a nightmare.

    A correctly set up LOC structure (or Offset Account or whatever you want) makes this sort of thing very easy to monitor and deal with should something bad happen.

    Mark
     
    Mark Laszczuk, 19th Sep, 2008
    #59
  20. gad

    gad Well-Known Member

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    I'm with Mark & believe an Offset account is best for your buffer.

    Met with my Navra planner today, I wouldn't get too excited about the coming distribution!
    (Can't elaborate, he didn't tell me what he thought it would be, just that like most funds, it will not be anything to get excited about).
     
    gad, 19th Sep, 2008
    #60
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