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Navra US share fund closure

Discussion in 'Managed Funds & Index Funds' started by pthm, 29th Nov, 2008.

  1. pthm

    pthm Well-Known Member

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    Got a letter from Navra saying that the US share fund will be closed due to very low FUM (under $800k). This is very bad for us before we are forced to realise a very large loss. Has any forumite suffer from this same situation? The unit price of the US share fund is quite low - wondering why the very weak A$ did not have a positive impact, considering navra did not hedge the A$ when they bought US shares.
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    It did have a very positive impact - but the falling US market had a very negative impact too ... see attached charts.
     

    Attached Files:

  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Just to make things perfectly clear - only the US fund is closing, the Austalian funds are unaffected by this and continue to operate as normal.
     
  4. hiflo

    hiflo Well-Known Member

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    I've decided to withdraw the US Retail Fund as it has decided to close.

    I'm losing but I have to move and make plans based on that. I'm looking at it from a bright side- at least I can reduce my margin loan with a significant capital loss. But I have made alternative plans.

    I was wondering why this topic didn't come up.

    But what else is there that I can do?

    It was my choice to invest in this fund with all the risks attached to it. But at the same time, my opinion on Steve Navra has been affected- both positive and negative.
     
  5. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Steve also expressed great disappointment about the closure of the US fund at the recent AGM - this was his dream, he always thought there was more money to be made from trading the US market, and the US fund has performed pretty well (outperforming the DJIA) even with huge fluctuations in currency markets and the relatively large expenses involved in trading such a small fund. It is unfortunate that the fund had not attracted more investment - at such a small FUM, it is far too expensive to operate.

    I wasn't aware of just how few US specific managed funds there were in Australia - there are hardly any at all that only focus on the US (most "international" funds have large exposure to the US, but also have exposure to other countries). I think there may be a lot of opportunity there in the future - once (or if?) they manage to get their economy sorted out and back on the straight-and-narrow.
     
  6. Liverpool St

    Liverpool St Well-Known Member

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    Sim,

    Is the fund closed or just in abeyance and not trading until sometime next year?


    LS
     
  7. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    I'm not exactly sure what you mean by "abeyance" in this context (I had to look up that word). I'm not sure of the exact timing of the fund closure - I'm not a unitholder so wasn't informed about the timeframe. All I know is what was announced at the AGM.

    Either way, the US fund will definitely be closing. It has already moved to cash (the same as the Australian funds), and I guess they will wind it up in due course.

    The Australian funds continue to operate as normal (you can buy/sell units), it's just mostly in cash until they deem it appropriate to re-enter the market (aiming for some time in Q1 next year I believe), at which point they will gradually re-enter over a period of time (not all at once).