Managed Funds Navra !st quarter distribution?

Discussion in 'Shares & Funds' started by lorrimer, 3rd Aug, 2007.

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  1. Simon Hampel

    Simon Hampel Founder Staff Member

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    Not necessarily "no" return - the shares don't just down and stay at the same price, there is volatility, they go up and down day-by-day, even though they may not really be going up over a period of time. The fund should (in theory) be able to trade this short term volatility to continue generating a degree of income.

    Don't forget that the fund wasn't buying as those share rose - it was selling, so it wasn't necessarily paying top dollar for those shares. So the fund doesn't have to wait for the shares to get back to where they were before the correction ... it should make good profits well before then.
     
    Simon Hampel, 6th Aug, 2007
    #21
  2. Ross__

    Ross__ New Member

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    Thats correct !!
    DaveA, you need to reqest St George to setup the CMA as "restricted" otherwise any funds put into it will be swept straight into the loan. I did this a few weeks ago.
    Also agree about the earlier comment of paying down the loan and redrwawing at at later date .....depending on how you apply the funds redrawn will determine the deductibility of the increased margin loan.

    Ross
     
    Ross__, 6th Aug, 2007
    #22
  3. Venger

    Venger Member

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    In the unlikely event they couldn't trade, there would perhaps be a little by way of post-expenses dividend flow left over for distribution.:rolleyes:
     
    Venger, 6th Aug, 2007
    #23
  4. lorrimer

    lorrimer Well-Known Member

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    I would like to think that the NavTrade system would allow for a much larger drop than 10% before it became fully invested.
    It would make more sense to still have at least 20% cash available following a 20% drop in the market, with the cash reserves running dry after a drop of around 30%.
    Drops of this magnitude are always possible and I would hope that the system was designed to operate in this way.
    I would love to find out the current level of cash in reserve.
    It would be great to hear what Steve Navra makes of the present situation and his take on how much lower we can go before the fund runs out of cash to invest.
    Please pop back in Steve if you are reading this, I'm sure there are many here that would like to hear from you!
     
    lorrimer, 7th Aug, 2007
    #24
  5. Simon Hampel

    Simon Hampel Founder Staff Member

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    Last I heard, Steve was away on holidays. Not sure when he is back, but it should be soon if he's not back already.
     
    Simon Hampel, 7th Aug, 2007
    #25
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