Managed Funds The unofficial Navra performance tracking thread 2

Lincoln also doen't show up on my margin lenders list of acceptable securities. Maybe its too young?

MJK

 

It is on Suncorp at 70%, thanks for posting that, looks interesting.

 

Lincoln can be margined to about 60-70%. I am currently using Lift Capital for my margin loan. Ring Lincoln's office to get list of lenders as the Retail Fund is only new but I believe there are half a dozen lenders.

Lincoln Wholesale paid a 34c. distribution last year and then split off a Retail Fund which has a minimum entry I think of about $20K. Wholesale fund you need $500K. Growth plus distributions, but if they do another 50% growth and only a small distribution, sell down some of the growth profit and rebalance back to your initial $'s entry. My NI holding is only one cent above my average entry price over the last 4 years so Lincoln's growth has been much better plus the fund far outperforms similar funds.

No entry or exit fees either, so no need to go via InvestSmart.

Happy investing.

 

Awesome!

I've applied online for their PDS and I'll use this fund for my ASX blue chip exposure. I assume ANZ is one of the margin lenders on their list. Once I've filled out my four new application forms for my diversified strategy I'll call ANZ and make sure of the process to execute the Navra sell down and four new fund buy in. The other three fund PDS's I downloaded from InvestSmart so I can get my entree fee rebated.

35% Lincoln Retail
35% JB Were resources
15% Challenger China
15% Platinum Asia

Total investment across all 4 around $800K.

Cheers,
Michael.

 

It is on ANZ and Comsec Margin Lending

 

Leveraged Equities have it at 70%.

 

My reading is that NI retail fund has outperformed ASX200 since July 1.
Is this correct?

Thanks

Denis

 

Is there another graph of how Navra is going vs the index? Has the funds trading methods benefitted from the volatility?

 

Here's my running chart that I populate. But I'll leave the commentary to others. Not sure how much longer I'll be tracking this fund either. Pretty soon it will no longer be part of my portfolio so I might need to doff my hat and hand over the batton to Sim who seems to be doing a great job on his new site on tracking this funds performance.

Cheers,
Michael

 

Is there any way to tell if the Navra fund is benefitting from the volatility in terms of trading profits? eg are we heading for a 2.5% distribution, or something higher or something lower?

Cheers
Simon

 

Hi Sim.

Was that indicative Distribution figure given as Australian and American?

 

Voigstr wrote - Is there any way to tell if the Navra fund is benefitting from the volatility in terms of trading profits? eg are we heading for a 2.5% distribution, or something higher or something lower?


I cannot see that the volatility has made any difference to the fund's performance. They also added 6-10 additional stocks about six months ago and that has had no affect to the overall performance at all. I think the more you add the worse performance because you are cutting the cake too fine.

My concern is with rising interest rates, if the fund continues to perform at this level then it will soon not be worth having the margin loan as you are only covering the cost of it.

 

Hi guys,

A quick check of the performance of the fund for this quarter to date shows that it has returned 0%.

Its opening unit price was 1.1343 on the 1/10/2007, and today's extrapolated unit price based on Friday's actual unit price is 1.1344.

Mind you, the ASX200 has lost -0.9% for the quarter to date, which is worse than Navra's 0% quarter to date.

I can't comment on distributions, only on absolute returns as illustrated by the unit price. The volatility probably means there's a fair bit of trading going on so a significant distribution is possible and will just drop the unit price ex dividend. With a zero absolute return, you need to watch your LVRs if there is a big distribution, as that will stretch margin loans particularly if you're capitalising ML interest. Just a warning. You might want to consider re-investing this distribution given the absolute return is zero, and if you've got borrowed moneys then your actual net return is negative. Protect those margin calls via re-investment or pay down your capitalised ML interest.

Zero percent ain't pretty but there's been some good quarters in recent years and you've got to take the good with the bad. This quarter has cost me $10K in losses so far in Navra due to my cost of borrowings. I need an 8% annualised return to cover my borrowing costs.

But I should be out now anyway. I've put in that instruction to my margin lender last week and they said they passed my Navra sell instruction to Navra on Thursday so I should be out at Friday's closing unit price of 1.1364. Over the 8 months I've been invested, that has profited me $32K above my cost of interest. Not bad hey! And hopefully my new funds will perform at even a higher rate of absolute return.

I'll keep you posted...

Cheers,
Michael.

 

Not that it makes much difference but l think NI figure is net of fees, so that implies NI is outperforming ASX200 by 1.3-1.4%

Regards
Denis

 

Hiya

I suspect that this may have been discussed previously, but is there a way to arrange for the automatic reinvestment of distributions, or is it always best to have the funds depositing into a holding account and then decide what you want to do with the funds?

Thanks in advance,

Pedro

 

Hopefully this is not too dumb a question, but, what difference does it matter if you go through InvestSMART or not, if the entry fee is paid back into your investment? (I'm of course talking about normal managed funds which you'd be paying up to 4% etc.) ??

Andrew.