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NavraInvest distribution confusion again

Discussion in 'Managed Funds & Index Funds' started by mikhaila, 19th Oct, 2005.

  1. mikhaila

    mikhaila Member

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    Melbourne
    Hi,

    I am confused :confused: with the numbers here, hope somebody can clear it up for me.

    The NavraInvest site states 5.46% per wholesale unit as net distribution for the September quarter. The price of the unit was $1.1904 as at the 30/09. It makes it 0.0546 * 1.1904 = 0.06499 cents per unit.

    I am with the Wealthtrac, and according to what they received the quarterly distribution is only 0.05899 cents per unit or 4.96% per wholesale unit. I rang them and asked if they take any fees out of this distribution and the answer was “definitely not, it shows whatever we received from the fund”.

    Now, my question is if I miss something, if Wealthtrac doesn’t tell the truth or NavraInvest website over quotes the distribution???

    Any information would be appreciated especially from the people who are with the Wealthtrac.
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Actually, the distribution is quoted as "cents per unit" = how many cents you get paid for every unit in the fund you own as at the end of the quarter.

    For the quarter ending 30th Sept, the retail fund paid 5.8c per unit. This means that if you have 100,000 units, you get paid $5,800 distribution ... similarly the wholesale fund paid 5.9c per unit, which would be $5,900 distribution for the 100,000 units.

    Don't let the percentages confuse you - they don't mean terribly much, and have nothing to do with the unit prices.

    Just focus on the cents per unit distribution times the number of units you hold.

    The "0.05899" cents per unit you were quoted sounds almost right ... although it sounds like they have some rounding problems. Should have been exactly 0.059
     
  3. mikhaila

    mikhaila Member

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    I can't see anywhere "cents per unit". Do you reffer to the NavraInvest website or somewhere else?

    Again, where can I see the cents per unit figures?

    You're making me worry :) . The % always mean something specific in this context especially. If the website quoted 5.46% as net income distributed income it must be a way to fairly simply explain the meaning of this figure.

    This is good news as the rounding "problem" is mine as I calculated this figure myself as I couldn't find anywhere cents per unit number. So, it looks like the distribution is correct, Wealthtrac didn't lie... What left is the figure on the website is not terribly clear to interpret or my understanding of it is really wrong.
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    This page: http://www.navrainvest.com.au/index.asp?content=distribution provides both the cents per unit and % figures.

    I think the % is a percentage of the fund value. As such it does (indirectly) have something to do with the unit prices, but it's not a % of the unit price, it's a percentage of the fund value, which is a function of the unit price and the number of units on offer (or more the point, the unit price is a function of the number of units on offer and the fund value !!).

    So, when you see a % figure for distribution, they take the total amount of profit to be distributed (eg. $4.428m), and divide that by the fund value (eg $82m) and arrive at a % figure (eg. 5.4%). At least I think that's how it works :D This % figure means very little to us individually, the cents per unit is something we can more readily use to work out how much of that profit is ours !
     
  5. mikhaila

    mikhaila Member

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    Melbourne
    Gees , thank you Sim. I always looked under http://www.navrainvest.com.au/index.asp?content=fund_perf :eek:

    Funnily enough I think I worked out the % figure as well. It looks like the % of the unit price at the beginning of the respective quarter not the end of it.