KFL - discount to diluted NAV

[alokdhir]

OR could the discount be due to the 6.55% CAGR since 2004?
Surely not?

https://portfolio.sharesight.com/por...olio_id=316437

Mate u need see it with reference to a bench mark ie NZX50 ...which since 2004 has CAGR of ?? They said recently that they outperformed index over 20 years period ...surely u dont expect a FUND which is inherently much safer then single stocks to outperform single stock's CAGR ...MFT has 20% plus and they had it as top 5 all this while ...

[bull....]

alokdhir what your forecast nav this week

[kiora]

Out of interest then what is CAGR of NZX50 over last 20 yrs?

[alokdhir]

Out of interest then what is CAGR of NZX50 over last 20 yrs?

https://api.nzx.com/public/announcem...684-415656.pdf

[alokdhir]

alokdhir what your forecast nav this week

Will let u know my estimate on Wednesday evening ...at present its just above $ 1.38

[alokdhir]

KFL is a stock then why it cant be included in the index ? With ARV and WHS exit on horizon ...need two candidates for NZX50 inclusion ahead ...TWR is less market cap then KFL ...so shouldn't be KFL then TWR ...unless KFL is not a stock ???

[Ferg]

KFL is a stock then why it cant be included in the index ? With ARV and WHS exit on horizon ...need two candidates for NZX50 inclusion ahead ...TWR is less market cap then KFL ...so shouldn't be KFL then TWR ...unless KFL is not a stock ???

From page 6 of the NZ Index Methodology:

Eligible Securities.
All common and equity preferred stocks (which are not of a fixed income nature) are eligible for inclusion in the indices. Hybrid stocks such as convertible stocks, bonds, warrants, and preferred stocks that provide a guaranteed fixed return are not eligible. Closed and open-ended equity funds that invest in a portfolio of securities are not eligible for index inclusion (e.g. ETFs, listed investment companies, etc.).{snip}

[kiora]

https://api.nzx.com/public/announcem...684-415656.pdf

"3- gross performance return – the Manager’s portfolio performance in terms of stock selection, before expenses, fees and tax."
OUCH
Annualised since inception returns are for the period 31 March 2004 to 29 February 2024.

Total shareholder return1 of 9.4% per year;
• Adjusted NAV return2 of 9.9% per year; and
• Gross performance return3 of 13.1% per year

[ronaldson]

TSR above includes the net value of converting warrants into shares at warrant expiry date IF they were in the money. Regular warrant issues are a feature of KFL ownership that represent further value and need to be accounted when comparing against performance of the NZ50 index.

And remember that over a 20 year comparison period the Index has been frequently adjusted by removals and inclusions according to the criteria under which it is constructed, which "improves" the outcome.

So KFL is a proven investment over time, especially when performance can only be achieved via NZX listings rather than overseas investments or unlisted/infrastructure opportunities. And you are effectively getting the benefit of diversification when you buy and hold.

[alokdhir]

"3- gross performance return – the Manager’s portfolio performance in terms of stock selection, before expenses, fees and tax."
OUCH
Annualised since inception returns are for the period 31 March 2004 to 29 February 2024.

Total shareholder return1 of 9.4% per year;
• Adjusted NAV return2 of 9.9% per year; and
• Gross performance return3 of 13.1% per year

I know u are doing ouch to 13.1% vs 9.9 % but as a LT holder I am saying well done to 9.9% vs 7.9% of NZX50 ...

Also note that they have considerably reduced performance fees as the corpus grew over the years due to successful conversion of warrants

IFT with its single stock risk gave 11.85% ...while KFL with relative safety of fund plus many further options of regular income stream / tax efficient / warrants play etc gave 9.9% ...so its not a bad buy and forget investment especially at huge discount to NAV ...here one can safely expect that this 12% gap will close ahead when rates drop considerably ...thus adding another capital appreciation aspect