NABCRF - Where did the CG's go?

G'day

Obviously I'm missing something but where did the CG go?

I invested funds into the NABCRF (Navra fund) on the 3rd Nov 2004.

The last day of that quarter was 31st Dec 04 where the App. price was 1.1583.
The start of the next quarter was the 4th Jan 05 where the App. price at the close of trade was 1.1262.

The last day of that quarter was 31st Mar 05 where the App. price was 1.1314.
The start of the next quarter was the 1st Apr 05 where the App. price at the close of trade was 1.0967.

The last day of that quarter was 30th Jun 05 where the App. price was 1.1241.
The start of the next quarter was the 1st Jul 05 where the App. price at the close of trade was 1.0729.

I believe a good percentage was distributed each quarter with the remaining component being a CG.
On the above figures I just don't see where it's gone.
Not wanting to sound like a past infamous politician but can someone explain.

Thanks

Seems to me the capital gains are realised, and spat out as distributions. Unfortunately we lose out on the halving of CGT if the companies are held for longer than a year, but thems the breaks.

Isn't that the idea of an income fund ?? We get the "CG" each quarter, locked in as cash. If market goes gurgle gurgle on 1st Oct, I'll be happy with my CG in the bank (PPOR loan actually).

The Navra web site even states that growth is achieved by re-investing distributions.

How do investors obtain growth?
Income from NavraInvest share fund portfolios is fully distributed each financial year on a quarterly basis. The way for investors to generate growth is to reinvest their distributed income each quarter in additional units in the fund. Quarterly compounding is potentially very powerful.

I understand that at end of every year all income is distributed. Not every quarter I have heard, they may keep a little aside to even out income stream.

Yes you're right.

It's just a shame that the CGT discount isn't something we can take much advantage of.

Yup, as previously stated, the drop in unit price corresponds to the drop in total assets in the funds as distributions are taken out at the end of each quarter. A significant part of it goes back in through re-investment, but that which doesn't causes the unit price to drop.

Your overall holdings will retain the same value ... either as additional funds reinvested in the fund, or as cash-in-hand

eg.
if V = value of your units at end of quarter before distribution
and D = amount of distribution

then if you take the distribution as cash, the value of your holdings in the fund post distribution, P = V - D ... but since the cash is yours to keep (before tax), then your total assets including cash = P + D = V - D + D = V

Thanks Guys

I'm pretty sure I read that the fund returned something like 22.6% last financial year.
Yet on the NavraInvest web site it states that the distribution for 04-05 was 16.17%.

Is that right?

Thanks

Found this post on the Somersoft forum:
http://www.somersoft.com/forums/showthread.php?t=21385

Where Steve says that Financial Years End result for the retail fund was 22.42% net
and the Annual Distribution was 16.17%

I still don't understand where the other 6.25% went but that's probably just me, I thought it was Capital Gain & reflected in the unit price but that does not appear to be so.

gad, yes it is capital gain and is reflected in the unit price. If there was no capital gain, then at the end of each quarter, the unit price would revert back to 1 once all distributions are taken out.