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NavraInvest pays 1.5c dividend

Discussion in 'Managed Funds & Index Funds' started by gad, 4th Sep, 2007.

  1. gad

    gad Well-Known Member

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    Was going to post this last night but waited until I saw a full description on my bank site this morning.
    NavraInvest have paid their first dividend.
     
  2. Nigel Ward

    Nigel Ward Team InvestEd

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    This is a really momentous occasion in the life of any company...it's first dividend.

    May there be many more and ever increasing! :D

    Hip hip Hooray! Hip hip Hooray! Hip hip Hooray! Three cheers for Steve and the team at NavraInvest.
     
  3. Insight

    Insight Brisbane Buyers Agent

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    Hi Gad,

    Is this based on a $2 share price? (from memory), is that a half yearly dividend as well.

    Interested in some more info regarding the div.

    Ta,
    Andrew.
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    My understanding is that it is a special dividend paid based on last financial year's results.

    Share price varies - there were (I think) at least 3 tranches at prices from something like $1 up to $2.50

    I haven't received any official details from NavraInvest about this dividend yet - I'm only going by what I heard from Steve.

    I would expect regular dividends to start being paid from this current financial year based on the new fee structure.
     
  5. JIT

    JIT Well-Known Member

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    If you have funds invested in the Navra Income Fund and shares in NavraInvest...then aren't the management fees now being taken from the income fund effectively being paid back to you as dividends??

    GSJ
     
  6. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Yes, isn't that the point of dividends ? They come from profits, and profits come from the fees that the fund manager charges. Nothing unusual there - it's exactly the same with Platinum Asset Management or any other listed fund manager.

    As a shareholder you not only get a slice of your own fees back as dividends, you get a slice of everyone else's too!
     
  7. pudsa

    pudsa Well-Known Member

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    You have such a succinct way of putting things Sim, makes it easy to understand. Is there anywhere on NavraInvest where we can read about the share dividend. We are shareholders and are thrilled at the prospect of getting a return but have seen nothing 'official' from NavraInvest as yet.
    Cheers :)
     
  8. Nigel Ward

    Nigel Ward Team InvestEd

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    Received letter from NI today. They plan on a quarterly dividend! Divies are usually semi-annual so that's something different.
     
  9. TryHard

    TryHard Well-Known Member

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    "Next contestant, GSJ. Subject - The Bleedin' Obvious" :p

    As per Sim's explanation, I don't really see the issue. Bit like saying the missus puts a meal on the table with the ingredients funded by your pay cheque ? Who's got a problem with that ? (other than the obvious sexist connotations, in which case swap 'missus' for 'hubby' :) )
     
  10. Alan

    Alan Well-Known Member

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    Almost like another Distribution isn't it?

    It does fit in nicely with the philosophy of providing 'regular income' though so maybe we shouldn't be surprised. I like it. :)
     
  11. Liverpool St

    Liverpool St Well-Known Member

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    Navra company shares

    I like it too. As the company grows the dividends will increase. The company's FUM was about $78M when I first got in and now heading towards $250M (not quite). Eventually share holders will be getting a 10percent annualised return from the income fund and 10percent from the share fund plus capital growth from the shares. And there is always another company out there that will see Navra as a threat and make an offer to buy out at perhaps $5+ a share?

    Liverpool St.
     
  12. johnnyb

    johnnyb Well-Known Member

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    I own a small number of shares in NI, so I'm happy that it will be paying distributions, but I'm not overly excited yet - at 1.5c I may be able to buy some fish and chips for the family this week-end with the amount I'll be getting :)

    John.
     
  13. Liverpool St

    Liverpool St Well-Known Member

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    Navra shares


    John,

    To be fair the shares are biased towards growth as are any IP's you have. The rent from the properties and distributions from the company shares make me feel a bit warm and fuzzy until the capital growth comes..

    L. Street
     
  14. johnnyb

    johnnyb Well-Known Member

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    I agree. I did not buy the NI shares for an income stream, which I why I do not expect to ever be excited by these distributions. I bought in the last round of offers I think, @ $2.50, so this distribution represents a yield of 0.6%. If the distributions ever get up to 20c/year I'll be very happy :D

    John.
     
  15. redrover

    redrover Well-Known Member

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    As shares were issued/purchased at anything from $1 to $2.50, what is the current value of the shares since they are not publicly listed to trade? If you purchasing at $1 a 10% return might be nice, however if you were later in the equation at $2.50 a 1.5c. dividend is not going to get you too excited for a while!!:(
     
  16. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    That's right ... this dividend does not represent a full year of income at the current management fees - it's just a small "token" payment to long suffering shareholders :rolleyes:

    I'd wait and see what the full year dividend ends up at before making judgements about yield.

    The actual value of the shares is difficult to determine given there is no open market for them ... you could work it out from an "accounting" point of view I guess - but that's only indicative.
     
  17. MichaelWhyte

    MichaelWhyte Well-Known Member

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    Hi Guys,

    I'm not a NavraInvest shareholder. That was suggested as part of my NFS financial plan, but the lack of public listing (hence hard to trade) and the lack of dividend history meant I saw it as a high risk investment.

    As such, I didn't buy any. And two years on, I'm pretty happy with that decision. A single dividend payment of 1.5c on $2.50 over what would have been a two year investment timeframe is a yield of 0.3%. I think investing those dollars in the ASX or in the Navra funds themselves represented a much more prudent investment.

    However, I recognise that a lot of NavraInvest share holders see this as their little speckie on the side. For that purpose, it can make sense to have it in your portfolio. I also have a few speckies, just not NavraInvest. Good luck with it!

    Cheers,
    Michael.
     
  18. TryHard

    TryHard Well-Known Member

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    We paid top freight ($2.50) for our shares and I am still completely comfortable with the decision and how it relates to our strategy. The investment is in the name of our Super Fund, and it meets the objectives of the fund as a long term investment to generate wealth for its members. The 1.5 cent dividend isn't going to see anyone retiring rich, but hopefully in 15-20 years the value of the NI company will more than likely see them straight. Hindsight is a wonderful thing - we'll see what I'm saying in 20 years (other than "Pass me my walking frame Gladys"

    :)

    PS I don't think an 'accounting' value would set these at $2.50 yet :)p), given the most recent sale on eBay was around $1 and they're only worth what someone else is prepared to pay. Anyhoo, slow and steady wins the race ...
     
  19. perky

    perky Well-Known Member

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    Lets put it this way - from what I understand there are 20 million shares in the company?
    From here on in the value of the FUM should continue to increase - and the costs of running the business will increase , but not by too much.
    By my workings , for every 100 million more FUM the 1.5% odd fee equates to 1.5 mill - divided by 20 = an extra 7.5c per share dividend. Take away possible extra costs for more staff and it may end up being an extra 6c per share div for each 100 mill extra FUM.
    So when the FUM reaches 420 mill , the dividend should be somewhere between 15 and 20c per share each year.
    At that point the share price will be worth more than the $2.50 that is was bought for.
    So next question is - how long until FUM reaches around 400 mill - probably sometime in 2009 by my guess .
    Anyway , time will tell.
     
  20. Glebe

    Glebe Well-Known Member

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    I'd rather own shares in BHP but each to their own..