Discussion in 'Managed Funds & Index Funds' started by ActiveTrade, 13th Jun, 2008.
Anyone know why so low before dividend payment ???
My paper losses are making me nervous....
Retail fund is down 2.2% this quarter and down 10.9% for the year.
ASX200 (non-accumulation) is down 0.6% this quarter and down 14.9% for the year.
That's why the unit price is so low.
Does anyone know if this distribution will be better than the last one? I was hoping for a decent one since it's the end of year distribution. Then again, with the unit price as low as it is currently the LVR on my margin loan won't be looking too good after a distribution is paid.
Two weeks could see the unit price back up around $1.00 with a bit of luck. Who knows?
I wonder if this last weeks smashing of B&B share price will have any impact on the distribution due to realised losses? According to the NavraInvest site, the fund is not currently holding B&B, but the question is when did they sell out and at what price? I last checked the listed stocks in their portfolio around Apri, and B&B was on the list back then.........
You might be right:
THE Australian share market is expected to continue its rally tomorrow after buyers returned to Wall Street at the end of last week.
Local share market tipped to rally | NEWS.com.au Business
I'm expecting 5% + come JULY 14 , they should've done well in this volatile market
Won't do much good if the unit price is down!!! Even if they pay out the 5% (which they will have to do unless offset by losses) the loss in unit price will be horrendous, possibly even triggering margin calls
All up so far it is looking like a very ordinary year with the returns so far not even covering the cost of funds let alone the capital loss.
Hate to say it Redwing but I suspect 5% or anywhere near it is unrealistic in the current market. The problem is cash flow, whereas intra-day and even daily volatility is good and generates some profit, the fund as I understand it, primarily buys as the market drops and sells as the market rises. Therefore I would expect that a large percentage of the fund's capital is tied up in prices which are above the current market hence the fund is locked in waiting for a rise. There have been a lot of drops recently but not much in the way of a sustained rally. Should there be a sustained rally I would imagine the fund is very well positioned for some solid, possibly even spectacular gains. Should a decent rally not eventuate in the next couple of weeks (the timeframe is pretty short, remember the old market maxim, it goes up on the staircase and down in the elevator, i.e. it tends to go up relatively slowly) I suspect the last qtr dividend and this qtr dividend will be similiar.
Obviously my thoughts only and if I new so much I wouldn't still be working for a living.
I think your analysis is spot on and unless there is a decent rally in the next 2 weeks, any distribution at all will be a bonus
OK - Let's all pray for a MIRACLE !!!!
I will be EXTREMELY happy with 5%.
THE Australian share market closed slightly lower today despite earlier gains and a good lead from Wall Street over the weekend.
Australian stocks edge down | NEWS.com.au Business
will they keep some of the gains in the unit price again as with the sell off and repurchasing installment warrant scenario last time?
I've increased my holdings at several points by topping up when the unit price has been low as well as setting up a Savings/Investing Monthly plan to Dollar cost average the Dollar cost trading plan; we're looking long term
Haven't posted on Invested for a while but I enjoy reading the posts on a daily basis.
I have a margin loan with Leveraged Equities and at the start of the month my LVR was 69%. As of yesterday's unit price (Navra) it is now at 74% and this is before the distribution. I was going to pay down the margin loan with this quarters distribution but it looks as though that won't be enough. Like other posters on here I was hoping for the market to improve and a decent distribution for the end of financial year.
I was just wondering what peoples thoughts are on here as to buying more units in the fund or would you pay down the margin loan. Haven't had a margin call before, so do they call when the LVR hits right on 80% OR do they let you know when it gets close. I probably won't have the extra funds for a couple of weeks.
Any thoughts appreciated
cheers Up Beat ( but not tonight)
Up- Beat, I am moving over to new Hybrid product Steve has recommended. Allows 90%LVR and it's a non recourse loan.
In my case I need at least 1.85cents per unit to maintain all my investment structure repayments for the next 3mths. If not I will have to unfortunately sell some units
Steve talks about 3 yr averages however with a YTD return of 6.69% (Retail Fund) it's nothing to be excited about.
I try and block out all the "noise" and "negative" media coverage and this helps. Been an investor is about enduring good times and bad times. I think there is a while to go before good times in the Navra fund return.
If you wish to reduce your LVR use the distribution to pay down the loan. This is somewhat similar in effect to a sell, with the funds paying down the loan.
Reinvesting in more units is a growth strategy for an uptrending market, but it will leave your LVR unchanged. Your overall value on the reinvestment day will be unchanged, as you would have more units at a lower value.
The margin lenders only call you when you exceed the buffer. You normally only need to reduce your LVR somewhat below the buffer limit, but BT and SGML and other lenders contracts I suspect, read such that you need to reduce the entire buffer to zero when margin called. Contract is written to give them maximum flexibility and protection.
On the BT website the transaction simulator allows you to simulate a margin call, and the margin call amount shown is only that which brings you back to the buffer limit, this is in contrast as to how their contract is written.
So does anyone know what sort of distribution we can expect this quarter?
On Saturday Steve said he expected about a 8% total distribution for the year.
I thought Steve's warrant product only allowed a max LVR of around 55% , not 90%. Or is there a new product around?
Product changes effective July 1. 90% LVR ... it will pay 70% of distribuition and 30% will be automatically deducted to pay down loan.
Suggest you contact NFS and ask for PDS.
Separate names with a comma.