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By Dan Stratful

Friday 13th April 2012

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Kingfish’s (NZX: KFL ) change to a new dividend policy in 2009 has made the stock more attractive to income investors, and the dividend policy sees quarterly dividends paid out at 2% of the average quarterly Net Asset Value (NAV).

This is attractive to income investors however growth investors can also take advantage of the company’s dividend reinvestment plan (DRP) and reinvest their dividends for growth.

KFL invests in a range of New Zealand companies listed on the New Zealand sharemarket and provides investors with a diversified investment in one single holding.

The investment portfolio is managed by Fisher Funds with an aim of delivering a high real rate of return through both income and capital growth. KFL’s investments include Abano Healthcare, Fisher & Paykel Healthcare, Freightways, Infratil, Mainfreight, Michael Hill, NZX, Opus International, Pumpkin Patch, Ryman Healthcare and Trade Me.

KFL’s portfolio has benefited from a strong run in Mainfreight, the NZX and Ryman Healthcare’s share prices but may have been held back by the underperforming share price of F&P Healthcare.

KFL may appeal to investors who seek diversification from one single investment and also those looking for income, while its status as a portfolio investment entity (PIE) provides some investors with tax savings.

KFL has picked some of the best companies on the New Zealand market and frequently trades at a discount to NAV, which could offer value to investors should the gap between NAV and its share price narrow.

Like other fund managers KFL has made an investment in Trade Me, and has also added retirement village operator Summerset to its portfolio, both of which offer growth prospects.   

Status: HOLD

KFL shares today traded at 97c

For portfolio, sharemarket and fixed income enquires contact:
Dan Stratful at Investment Research Group (IRG)
Authorised Financial Adviser (AFA)
0800 437 8489, 09 304 0232,
**A disclosure statement is available, on request and free of charge.

In accordance with the Financial Advisers Act 2008 (“the Act”) Sharechat is “Class Advice” and any advice or recommendations contained on this webpage is not “Personalised Advice” as defined by the Act. This means Sharechat does not take into account an investor’s particular financial position, financial needs, financial goals, risk profile or asset allocation. Investor’s who require “Personalised Advice” should contact an Authorised Financial Adviser (AFA).

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