Rising from almost 0 ...NZ interest rates will be at very very low levels compared to past for some time to come ...If u agree then u can do the maths yourself
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1.25 Mil warrants buyers @ 10 cents ...seems like as anticipated its range will be 10-15 cents ...people taking a call on next years markets especially NZX which underperformed in a big way all 2021 .
Maybe this assessment ...market liked more ...day one closing 13.5 Cents ...maybe 15 Cents possible ...but almost here . Warrants are a great long term Call options on NZX ...so has both time value and offer value attached .
Have seen market is valuing them pretty highly right at start ...same trend continues ...
But as mentioned here ...soon supply can come ...after all 79 Mil issued FOC :cool:
I haven't had an allocation email from Computershare yet. Should I have?
I called it but the price still surprises me. The real issue is not the value of the call option per se but the assumption that KFL will continue to trade at a 10-11% premium to NTA when their portfolio is so easy to replicate.
In addition there's the little known fact that I really only quite recently got on too that you can buy ostensibly the same portfolio through their unit trust at no premium to NTA. This also seems to apply to Barramundi and Marlin, see Australian and International Growth fund and go and have a look at the quarterly reports and compare shareholding disclosure of unit trusts with listed vehicles, they look pretty much identical to me ! https://fisherfunds.co.nz/investment...nd-growth-fund
From what I can see these unit trusts ostensibly replicate the shareholdings of the listed companies Kingfish, Barramundi and Marlin.
If you like the 2% PIE distributions each quarter its easy enough to withdraw 2% of your unit trust each quarter and mirror what the listed funds are doing.
Further, for those with $500K or more, you can set this thing up with their private wealth team and design whatever portfolio suits you and tailor a dividend withdrawal program monthly or quarterly, whatever you like e.g. 0.75% per month = 9% per annum.
So coming back to the premium to NTA question, why would you pay 10-25% premiums for the listed vehicles when the unlisted unit trusts holding the same investments trade at NTA ?
Yes Beagle you're right to point out the parallel unit trusts being available for purchase or sale at NTA. I prefer the listed alternatives as they allow an investor to buy or sell at times where be the market is not in tune with the NTA..discount or premium events. This can improve returns vs being locked to NTA.
Yep but I haven't seen the unit trust offering warrants...
Its not as easy if u look at it from Tax angle especially for buy and forget type people and for people on 39% rate ...Simplicity and finality of listed PIE tax dividends is unparalleled . Main reason many in it for the long hauls ...they dont care about the premiums or discounts as regular income perpetually is their only goal .
Same as u said about people choosing to sell their homes and move to retirement villages ...