Originally Posted by
SPC
They've brought plenty to my table over the years. And I've bought plenty more for dessert.
JW - why don't you save yourself all the angst of trying to figure out what's inside the KFL black box and just buy $100 bucks worth and sit back and watch it work..? (And there's likely a warrant issue in the wings soon too!)
How KFL generate the excluded (capital) portion of the return is up to them. There are no doubt trading mechanisms whereby a holding may overshoot providing a sale opportunity and profit, along with underpriced opportunities allowing for restocking. They're using an active manager to run the black box and the above is normal and expected strategy for a fund manager. They know what they're doing. Selling and buying to make capital gains is not a crime is it? (unless your political thinking suggests otherwise) and I go further and suggest that this whole investment regime was actually a creation of the late Dr Michael Cullen who probably never owned a share in his life.
Taxation discussions are unnecessary. Listed PIEs are automatically excluded from individual taxation positions.
Go on be brave...give it a go