Managed Funds US markets drop and Navra performance

Performance for the financial-year-to-date:

3.63% Platinum Asia
1.52% NavraInvest US
0.53% CFS Wholesale Property Securities
0.11% Platinum International
-0.64% NavraInvest AUS Wholesale
-0.78% Platinum Unhedged
-1.29% CFS Wholesale Global Resources
-1.72% Platinum International Brands
-2.75% Platinum European
-4.42% CFS Wholesale Colliers International Property Securities
-4.73% CFS Wholesale Geared Share
-9.24% CFS Wholesale Small Companies Core

 

Two reasons:

1. the bounce back was very strong (surprisingly strong - the sharpest rising market we've had in decades apparently). Navra doesn't tend to do as well as some other funds in that type of market since they would begin selling down while other funds would ride the increase. Increasing cash levels as Navra sells are a drag on performance in a rising market.

2. we've not fully recovered yet - the Navra fund gets its best returns once we go back above where we were before the correction.

Don't expect too much too soon

 

Depends on the shares it held (some where hammered more than others) and what the fund did during the correction (did they sell down badly performing shares and thus miss out on the bounce ?).

 

Yes - the fund is not immune to market drops ... the shares the fund held dropped in value, thus dropping the unit price.

To put it in perspective, from closing on the 29th June (6274.9) to the lowest close since - Friday 17th Aug (5671.0), the ASX200 dropped 9.6%

In comparison, the Navra AUS W/S fund was closed the financial year (estimated ex-distribution unit price) at 1.1222 and bottomed out during the correction at 1.0321 ... an 8.0% drop.

For the financial-year-to-date (Monday's close), the ASX200 has done 6274.9 to 6185.2 = -1.4%, while the Navra fund has done 1.1222 to 1.1124 = -0.9% (this is retail fund, my figures in the previous post were for the wholesale fund).

The main thing that works in the fund's favour to limit the size of the fall, is the amount of cash they hold (cash doesn't drop in value when the market drops). But the fund will still fall when the market falls.

The market has to recover more for the Navra fund to see the really good gains ... the market still has a long way to go before reaching the levels we were at back at the end of the financial year.

 

Correct on both counts

The reason I keep going on about it is that many people new to the fund have this misconception that it won't ever go down in value, or that it will always produce great returns.

I just want to set the expectations right and make sure people understand how the fund is going to behave (at least in broad terms). I must say that it is nice to have a fund which does largely behave as expected - unlike some of my other funds recently

The trick with Navra is to be able to separate the macro-level "marketing spin" about how the fund works and the way it generates returns ... from the micro level detail about what it will do on a day-by-day or week-by-week basis. Many people new to the fund hear the macro level descriptions, and then get concerned when the micro-level behaviour doesn't exactly match that.

I'm just here to set the record straight on the micro level stuff and to help people understand what is going on ... only because I hate to see people get upset over a misunderstanding.

One of the interesting things about Steve Navra is that he is both technically brilliant from a share trading perspective (that is his background afterall - and he personally developed the NavTrade system), while also being a great marketer - selling the big picture vision. That's a pretty rare combination in my experience ... usually the marketers can't drill down into the detail when you need them to - and usually the technicians aren't that good at explaining (or selling!) the high level concepts.

... but I think we are dragging this thread off topic!! (sorry!)

(Edit - I split these posts off into a new thread)

 

... yup, the dates I chose were quite arbitrary - it was just convenient to use the financial-year-to-date figures, since that is what people generally see from the Navra website.

 

Please don't just lurk - I was thinking only the other day that we hadn't heard from you for a while. We miss you!

Steve doesn't post here anymore - so there's no problem there

How's the house you built going? Everything finished now or still stuff to do ?