Navra fund performance update
- Thread starter NigelW
- Start date
Distribution
Steve Navra,
What is going to be last quarters distribution?
Steve Navra,
What is going to be last quarters distribution?
HI,
Can anyone help with the following question.
Navra fund net income distribution was 11.12%- I understand that part.
Income distributed.
Navra fund return for the year 22.42%
The difference is 11.3%. Is that the growth part? Am I able to access the
growth value at anytime.
Am I actually getting a return of 22.42% on money invested.
So 20,000 invested at 22.42%= $4484 of which 2224 was distributed throughout the year.
What happens to the $2260.?
Don't laugh! Answer is probably easy.
Kind regards
Marina.
Can anyone help with the following question.
Navra fund net income distribution was 11.12%- I understand that part.
Income distributed.
Navra fund return for the year 22.42%
The difference is 11.3%. Is that the growth part? Am I able to access the
growth value at anytime.
Am I actually getting a return of 22.42% on money invested.
So 20,000 invested at 22.42%= $4484 of which 2224 was distributed throughout the year.
What happens to the $2260.?
Don't laugh! Answer is probably easy.
Kind regards
Marina.
the difference is the income not yet distributed.
Yes you're getting 22.42% return on your money
Yes you're getting 22.42% return on your money
Sim
Administrator
Not quite ... difference is a combination of income not yet distributed, plus capital growth that hasn't yet been realised as income.
Don't forget that the final distribution for the year hasn't been paid yet - that will happen in the next few days ... so income distribution for the year will be higher than 11% (but not much higher - a couple of percent I'd imagine).
Return on money depends on your definition. You're getting 11%+ cash (income) return on your money. You're getting a total return (income + unrealised capital growth) of around 22%.
Don't forget that the final distribution for the year hasn't been paid yet - that will happen in the next few days ... so income distribution for the year will be higher than 11% (but not much higher - a couple of percent I'd imagine).
Return on money depends on your definition. You're getting 11%+ cash (income) return on your money. You're getting a total return (income + unrealised capital growth) of around 22%.
Hi Sim.Sim said:
Interesting comment.
You may remember in Steve's following post back on the 31/3/05 that he mentioned that there was already 2.7% there towards the upcoming Quarter's Distribution. I read this as saying this Quarter's Distribution should be 2.7% PLUS realised profits from the last three months of trading to June.
Quote:
Well of course and the actual realised profit as at close 31st is 7.2%.
We have chosen to distribute only 4.5% of the amount and will hold the balance over into the next quarter.
So at this point in time the last quarters distribution will be the balance of 2.7% plus whatever realised profit we accrue in the next three months of trading.
Regards,
Steve
Wouldn't this mean if this Quarter's Distribution is LESS than 2.7% then NO realised profit would have occurred in the last three months?
From memory the last Quarter was almost a classic U-shape with the Index falling 10% and then regaining nearly all the loss of that period. With a buy-buy-buy on the way down and a sell-sell-sell on the way up I would have thought the Fund should have performed reasonably well in this most recent Quarter?
I may well be wrong though.
When we were previously discussing the % of the Fund that would be held in Cash on the Forum and Steve had said in about November last that they were about 40% in Cash I had posted and said it would be interesting to know what % cash they would have been holding in March 2005 when the Index had roughly risen about another 10%. I had 'hypothesised' that since the market had risen significantly during this period and the Fund would have presumably been more a seller than a buyer in this environment that by March they would be holding even more Cash. Wrong! Today I received a copy of the most recent PDS for the Fund(15 May 2005) and in it they mentioned that their Asset Allocation as at 31 March 2005 was 5.36% in Cash??? Since March was just before the recent 10% correction I thought there would have been significantly more held in Cash at this time to take advantage of what became a subsequent 10% Index 'drop' shortly after?
Note: The above figures are approximate only and since my previous hypothesis was incorrect probably any other interpretations I've made could be 'off' too.
Ahhh........I don't know........I obviously understand this less than I thought I was starting to......it was certainly much easier when Steve was abe to respond to some of these types of novice queries here....
Sim
Administrator
The problem with the last three months is that the market basically went straight down and then straight back up again - so from a macro point of view, there was a lot of volatility, but from a micro-view, there wasn't much volatility - just movements in one direction. Certainly the fund capitalised well on that macro movement - coming from an underperforming position in March to finishing the year outperforming - but during that downswing, apparently losses were realised (don't ask me for details of how or why - I don't know how the day-to-day trading actually works). Suffice to say that the previous gains were eaten away by trading losses, which were then gained back again by profit taking on the subsequent upswing - so we ended up in a good position at the end, but perhaps not as good as we would have liked. Still - outperformance is not to be sneezed at ... I think the fund did extremely well in a not exactly ideal market.
Steve will be posting on a new forum soon enough - you can come over and ask him more questions there when it is up and running
Steve will be posting on a new forum soon enough - you can come over and ask him more questions there when it is up and running
Sim
Administrator
Well, a little birdy just told me that distribution for the last quarter should be around 4% (he was still trying to see the final figures in through the office window!)... that's a lot more than I was expecting - and a fantastic result (grabs the calculator and cackles with glee). That should mean over 15% cash distributed for the last 12 months - go NavraInvest !!
Sim said:
Are you saying the Navra fund will sell shares at a loss ??? Why sell if there will be a loss, that doesn't make much sense for a trading fund? I assumed if the current price was less than purchase, the fund just sat on it until a profit could be made. Sure, sell to create other buying oppunities, but I didn't think what this was part of the plan. Can a Navra person confirm this, or can you give the birdy a telescope and one of those mini spy cameras
maniyak said:
The most obvious reason why NavraInvest would sell shares would be if the Company no longer fullfilled their fundamental analysis.
See Change
Aceyducey said:
Acey
I don't recall Steve mentioning the use of a stop loss in any of the presentations I've seen, which I understood was the reason why he pays such importance to the fundamental analysis of the companies that his system trades.
I was under the impression this was a differentiating point of NavTrade. The use of very strict FA and buying over sold shares, made his approach Profitable.
See Change
Well with the London bombings, the stockmarket will most likely go down by a significant amount over the next few days.
It will be interesting to see how the fund performs over the next month. This will be a good time to put some money into the fund.
PS I am not in any way condoning the actual bombings, they are a shocking and devastating event.
A somber perky.
It will be interesting to see how the fund performs over the next month. This will be a good time to put some money into the fund.
PS I am not in any way condoning the actual bombings, they are a shocking and devastating event.
A somber perky.
Sim
Administrator
maniyak said:
Don't forget that the fund is ALWAYS buying and selling ... it buys as the price goes down and sells as the price goes up. And the price goes up and down a lot, so it buys and sells a lot. The fund doesn't just "sit" on a share - that's what stock pickers-and-prayers do. It makes no judgement about whether a share will go down more or go up more, it merely reacts to what the market does.
Think about it ... share market went down strongly from about march ... NavraInvest starts buying. Sharemarket starts going up again strongly, NavraInvest starts selling. Sure, some of those sales are at prices higher than the shares that were purchased, but look at the AVERAGE share price ... because the fund is continuously buying and selling, the average share purchase price is probably somewhere between the market peak and the market trough ... so when it starts selling again, some of those sales will be below the AVERAGE purchase price. Don't ask me how or why that works - that's where the smarts in the system is - I'm not going to try and talk for NavraInvest on the details - I only understand it at a macro-level.
At the end of the day - it does work, the fund outperformed the market in those conditions - and returned heathly distributions for the quarter. From what I've heard since, the current volatility in the market is leading to great out-performance of the market too (although we can't count on short term results).
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