Author Topic: Australian Investing Thread (Read 2762632 times)

FFA · « **Reply #2000 on:** June 01, 2016, 04:50:03 PM »

yup I agree, no change to strategy, just exit timing and how much margin for error you might want. If I'd have quit on the cusp of 4% and with no desire to work ever again, I might be a bit stressed now. However having a bigger stash (lower WR) and open to consult or work part-time (which I've been doing), it's not a bother for me. But certainly the logic that returns are lower therefore one should take more risk is flawed. I wouldn't be adjusting asset allocation for such reasons, it is no different to market timing and on average unlikely to have a positive outcome.

BattlaP · « **Reply #2001 on:** June 02, 2016, 02:06:38 AM »

Quote from: insolent librarian on May 31, 2016, 08:32:26 AM

* With such low interest rates, is it worth getting the guaranteed 5% for paying off part of my HECS debt, as compared to the 3% I get for leaving it in the bank? Especially as that 5% option goes away at the end of the year.

I would totally take advantage of this man, I paid off a 30k HECS over a couple months in 2015 and I look back on it as a highlight of the year. The numbers will never make it the mathematically best direction but fuck it feels good being totally debt free.

Juan Ponce de León · « **Reply #2002 on:** June 08, 2016, 03:34:59 PM »

Thread has gone a bit quiet.

Seems like the LICS (AFI and ARG anyway) are trading very close to NAV now, after quite some time trading at a premium. I'm due to make an ETF purchase tomorrow and was going to get some more STW, but now I'm weighing up if it may be time to make my first LIC purchase for a bit of active managed diversification and to take advantage of their discounted DRP schemes etc. Any thoughts? And which is the better of the two?

hodor · « **Reply #2003 on:** June 08, 2016, 05:45:08 PM »

Quote from: Trevor Reznik on June 08, 2016, 03:34:59 PM

Thread has gone a bit quiet.

Seems like the LICS (AFI and ARG anyway) are trading very close to NAV now, after quite some time trading at a premium. I'm due to make an ETF purchase tomorrow and was going to get some more STW, but now I'm weighing up if it may be time to make my first LIC purchase for a bit of active managed diversification and to take advantage of their discounted DRP schemes etc. Any thoughts? And which is the better of the two?

Sounds like a good plan. Pick up an (old school) LIC when trading near/at a discount and the index when they are at a premium.

Both are very similar and have a long history of outperforming the index. Maybe pick up the one with the greatest discount...? ARG has less mining exposure than AFI which in my mind makes it preferable.

englyn · « **Reply #2004 on:** June 08, 2016, 08:51:55 PM »

I have some ARG, bought when it was at a discount. Haven't quite got my head around whether to buy more when it's near equal to NAV. Problem being that the value of ARG hasn't changed that much (since February) but the value of the index (and hence NAV) has climbed to match it. So is it that they're both overpriced now and I should go buy more VEU instead?
This decision would be easier if I had a target % domestic/international allocation, but I don't. I haven't seen a sufficiently good argument for any particular setpoint yet. Currently 25% international split evenly between VTS/VEU.

Juan Ponce de León · « **Reply #2005 on:** June 09, 2016, 02:42:22 AM »

Thanks guys, I have a bit to think about. Probably leaning towards the original plan (STW) and I'll think about the LICs when they're trading at a more obvious discount.

faramund · « **Reply #2006 on:** June 09, 2016, 11:58:55 PM »

Quote from: englyn on June 08, 2016, 08:51:55 PM

I have some ARG, bought when it was at a discount. Haven't quite got my head around whether to buy more when it's near equal to NAV. Problem being that the value of ARG hasn't changed that much (since February) but the value of the index (and hence NAV) has climbed to match it. So is it that they're both overpriced now and I should go buy more VEU instead?
This decision would be easier if I had a target % domestic/international allocation, but I don't. I haven't seen a sufficiently good argument for any particular setpoint yet. Currently 25% international split evenly between VTS/VEU.

I hadn't really thought about ARG, so after reading this I looked at their web page, and from what I saw, they seem reasonable. But they gave their performance as:
   Argo Share Price   S&P/ASX 200 Acc. Index
1 Year   -5.7%   -2.4%
3 Years    7.7%    7.7%
5 Years    8.9%    7.5%
10 Year    4.8%    5.3%

I'm pretty sure VAS is about the same as the ASX200 Acc Index, so what's the point of something like ARG over VAS?

hodor · « **Reply #2007 on:** June 10, 2016, 02:33:42 AM »

Quote from: faramund on June 09, 2016, 11:58:55 PM

Quote from: englyn on June 08, 2016, 08:51:55 PM
I have some ARG, bought when it was at a discount. Haven't quite got my head around whether to buy more when it's near equal to NAV. Problem being that the value of ARG hasn't changed that much (since February) but the value of the index (and hence NAV) has climbed to match it. So is it that they're both overpriced now and I should go buy more VEU instead?
This decision would be easier if I had a target % domestic/international allocation, but I don't. I haven't seen a sufficiently good argument for any particular setpoint yet. Currently 25% international split evenly between VTS/VEU.
I hadn't really thought about ARG, so after reading this I looked at their web page, and from what I saw, they seem reasonable. But they gave their performance as:
   Argo Share Price   S&P/ASX 200 Acc. Index
1 Year   -5.7%   -2.4%
3 Years    7.7%    7.7%
5 Years    8.9%    7.5%
10 Year    4.8%    5.3%

I'm pretty sure VAS is about the same as the ASX200 Acc Index, so what's the point of something like ARG over VAS?

It appears you're comparing an accumulation index to a share price without dividends. If both came from their site it is strange that didn't mention if the share price included dividends. I have their 10 year performance (NTA) at 6.5%pa to December 2015 per bell Potter report.

faramund · « **Reply #2008 on:** June 10, 2016, 05:29:25 AM »

Quote from: hodor on June 10, 2016, 02:33:42 AM

Quote from: faramund on June 09, 2016, 11:58:55 PM
Quote from: englyn on June 08, 2016, 08:51:55 PM
I have some ARG, bought when it was at a discount. Haven't quite got my head around whether to buy more when it's near equal to NAV. Problem being that the value of ARG hasn't changed that much (since February) but the value of the index (and hence NAV) has climbed to match it. So is it that they're both overpriced now and I should go buy more VEU instead?
This decision would be easier if I had a target % domestic/international allocation, but I don't. I haven't seen a sufficiently good argument for any particular setpoint yet. Currently 25% international split evenly between VTS/VEU.
I hadn't really thought about ARG, so after reading this I looked at their web page, and from what I saw, they seem reasonable. But they gave their performance as:
   Argo Share Price   S&P/ASX 200 Acc. Index
1 Year   -5.7%   -2.4%
3 Years    7.7%    7.7%
5 Years    8.9%    7.5%
10 Year    4.8%    5.3%

I'm pretty sure VAS is about the same as the ASX200 Acc Index, so what's the point of something like ARG over VAS?

It appears you're comparing an accumulation index to a share price without dividends. If both came from their site it is strange that didn't mention if the share price included dividends. I have their 10 year performance (NTA) at 6.5%pa to December 2015 per bell Potter report.

No, I used http://www.argoinvestments.com.au/portfolio-performance/share-price-performance
which says that they are showing ARG while assuming that they reinvested dividends.
If Potter in 2015 has a different figure, I assume that's because ARG is showing the latest results (do you know what 10 year annual performance for the ASX in 2015 was?). In any case, if ARG shows worse performance than a report, I'd trust ARG.

In general, ARG seems very 'honest', but looking at their share holdings, it really just seems to be an ASX index fund... so I don't understand why one would buy it, instead of VAS that does the same, with lower management costs.

hodor · « **Reply #2009 on:** June 10, 2016, 03:36:14 PM »

Fair points. I would think the ARG website would be more accurate too.

VAS and ARG both have a MER of 0.15%

Juan Ponce de León · « **Reply #2010 on:** June 10, 2016, 07:13:46 PM »

Maybe this is why someone would buy it:

https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1465607597889&chddm=1484793&chls=IntervalBasedLine&cmpto=ASX:ARG&cmptdms=0&q=INDEXASX:XJO&ntsp=0&ei=mGVbV8i-DYOB0gSyqquIBA

faramund · « **Reply #2011 on:** June 10, 2016, 07:37:13 PM »

Quote from: Trevor Reznik on June 10, 2016, 07:13:46 PM

Maybe this is why someone would buy it:

https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1465607597889&chddm=1484793&chls=IntervalBasedLine&cmpto=ASX:ARG&cmptdms=0&q=INDEXASX:XJO&ntsp=0&ei=mGVbV8i-DYOB0gSyqquIBA

This was interesting to look at, although if you change the time scale, sometimes ARG is better and sometimes VAS - but, given as pointed out in the previous reply, ARG has the same MER as VAS, I've softened my opinion about it. ARG probably isn't too bad, it has a low MER, they seem to be an honest company - so buying some of it for diversity seems like a fair enough idea.

hodor · « **Reply #2012 on:** June 10, 2016, 11:00:12 PM »

Quote from: Trevor Reznik on June 10, 2016, 07:13:46 PM

Maybe this is why someone would buy it:

https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1465607597889&chddm=1484793&chls=IntervalBasedLine&cmpto=ASX:ARG&cmptdms=0&q=INDEXASX:XJO&ntsp=0&ei=mGVbV8i-DYOB0gSyqquIBA

That is what I meant by a long history of out performance. I hadn't seen the comparison on their website which showed them trailing the index so it came as a surprise.

LICs like ARG appear to hold a lot of the index with a few exceptions and different weightings, which is what appears (I presume) to have given them the edge long term. I am fairly new to a lot of this, however my reading and understanding of things points to buying one of the low MER (similar to indexing) LICs when they are at or at a discount to NTA and picking up the index if they are trading at a premium. Given ARG has been around since the 1940's I am not concerned about them going anywhere.

If anyone has an argument against this kind of strategy I would be happy to hear it.

marty998 · « **Reply #2013 on:** June 11, 2016, 05:13:08 PM »

Anyone think the market is going to be flat/neutral to negative until the election is over?

Thinking it gives time to keep powder dry for some buying in September/October.

Very low inflation/deflation is going to hurt the Banks, Wesfarmers/Woolworths, most industrials who will struggle to get revenue growth in this environment. The only way costs can be managed is by staff cuts or wage freezes so it is likely many firms profits will be steady or down.

Reporting season will give us a better idea. I've moved my super from 80/20 equities/cash to 45/55, and am holding onto cash and margin loan capacity in anticipation.

faramund · « **Reply #2014 on:** June 11, 2016, 06:30:48 PM »

Quote from: marty998 on June 11, 2016, 05:13:08 PM

Anyone think the market is going to be flat/neutral to negative until the election is over?

Thinking it gives time to keep powder dry for some buying in September/October.

Very low inflation/deflation is going to hurt the Banks, Wesfarmers/Woolworths, most industrials who will struggle to get revenue growth in this environment. The only way costs can be managed is by staff cuts or wage freezes so it is likely many firms profits will be steady or down.

Reporting season will give us a better idea. I've moved my super from 80/20 equities/cash to 45/55, and am holding onto cash and margin loan capacity in anticipation.

I have no confidence in my ability to predict the future - so I just average in, any investment money I get, regardless of the market, but this is a bit of an interesting idea.

So, September 1, is just on 3 months away, the long term average growth rate of the all ords is about 7%, so I'd guess, 2% or so growth by then... So allords is now 5391.6. So my guess for 1 September is 5500. Does anyone else want to make a claim for fame or ignominy?

marty998 · « **Reply #2015 on:** June 11, 2016, 06:36:29 PM »

I'm actually starting to believe the whole "sell in May and go away" and "santa rally" evidence.

The market does have a mood and can be seasonal in nature. Confidence comes in waves.

Dow went above 18,000 last week before pulling back slightly. We got to 5400 and started teetering... the insurers will cop a hammering for the storms that hit the east coast - Suncorp, IAG fell but they should be adequately reinsured to limit the losses somewhat.

marty998 · « **Reply #2016 on:** June 18, 2016, 08:51:11 PM »

I don't have anything to say right now. Just thought I'd post to at least keep this thread on the 1st page of the IA sub.

bigchrisb · « **Reply #2017 on:** June 19, 2016, 05:30:27 PM »

Yeah, there isn't a lot to say at the moment! Valuations keep swinging around, but not moving a long way. The world is in a low rates / low growth funk and looks to be there for a while. My portfolio keeps reinvesting dividends, and I'm putting my spare cash into a mix of debt reduction and increasing passive holdings. Ticking along really - boring is probably good for long term personal wealth!

The only tactical change I've made is to swap back from ETFs to LICs for new purchases, as the premium to NTA has come back to about par value.

hodor · « **Reply #2018 on:** June 20, 2016, 04:52:51 PM »

Quote from: marty998 on June 11, 2016, 06:36:29 PM

I'm actually starting to believe the whole "sell in May and go away" and "santa rally" evidence.

The market does have a mood and can be seasonal in nature. Confidence comes in waves.

Dow went above 18,000 last week before pulling back slightly. We got to 5400 and started teetering... the insurers will cop a hammering for the storms that hit the east coast - Suncorp, IAG fell but they should be adequately reinsured to limit the losses somewhat.

Don't confuse coincidence with a repeating pattern you can take advantage of, human nature means we like to see patterns in randomness.

micase · « **Reply #2019 on:** June 20, 2016, 10:31:50 PM »

Quote from: FFA on May 28, 2016, 10:30:21 PM

lots of talk these days about deflation, low interest rates, deleveraging etc. 10 year govt bonds at 2% instead of the old 5%. And we should expect 4-5% average returns from shares instead of 7-8%. And this is here to stay for some time.

Any thoughts on this, if it's really different or just another cycle passing. Has a big impact on retirement plans though.

To some extent it's offset by lower inflation, i.e. returns 3% lower, but inflation 1-2% lower too, so the impact on SWR required is maybe 1-2% instead of the full 3%. But that 1-2% can add a lot of years on your working life !

While this doesn't impact me greatly regarding retirement plans (I'm still many years off retiring,) it has a very large impact on me saving for a deposit on a PPOR. After reading a MMM book recommendation ' The Magic of Thinking Big' and another book 'One Page Financial Plan', I went about setting myself long term financial goals that serve as a compass aiding in shorter term financial decisions. The biggest goal out of this which many people in Australia share is to own my own house.

Coming up with the goal was the easy part, the tough part I'm finding now is determining what path I will take in order to achieve this goal. Living and working in Sydney I see RE prices are still climbing higher and higher while the returns I get on my money in a HISA account are getting lower and lower. Currently 90% of my networth is in cash as I can't justify to myself that taking on extra risk with equities is worth it for what could be like you said 4-5% average returns over the next few years. It is hard not to feel like I've missed the boat with how much RE prices have increased over the past few years in Sydney and how easy servicing a loan would be at these rates.

The positive out of this is that the goals I came up with after reading the above mentioned books (which I would recommend to anyone out there) help guide me in making the right financial choices in day to day life. It feels like I'm treading water now but I've got plenty time to educate myself with all things investing and finance so that one day down the line when an opportunity arises I'll be ready to grab it.

bigchrisb · « **Reply #2020 on:** June 23, 2016, 09:21:35 PM »

Looks like I spoke too soon! Watching the red ink from brexit and starting to deploy some additional cash. A small purchase today, and moved some cash across to deploy on monday

marty998 · « **Reply #2021 on:** June 24, 2016, 04:08:06 AM »

Oh man... this was all we were talking about today at work.

Pound dropping 8% against the USD. It's all a bit ridiculous

ASX down 3.5%, FTSE futures down 6%! Shanghai market down 8%..... Japan down 12%.

Seriously it's such a gigantic overreaction

faramund · « **Reply #2022 on:** June 25, 2016, 01:46:09 AM »

I had a bit of bad timing, at the moment I'm buying a package of shares about once a month, and I just did that a few days ago. Still, hopefully the market will stay down for a while longer, and I'll get a discount with my NEXT package.

limeandpepper · « **Reply #2023 on:** June 25, 2016, 02:42:05 AM »

Is there something I'm missing - I had a quick look at the markets and VAS, VTS and VEU are all down, but VGS is up??

JamesSyd · « **Reply #2024 on:** June 25, 2016, 04:38:43 PM »

Quote from: limeandpepper on June 25, 2016, 02:42:05 AM

Is there something I'm missing - I had a quick look at the markets and VAS, VTS and VEU are all down, but VGS is up??

I saw that as well and it made me think twice. It must be that the aussie dollar ~~weakened~~ strengthened more than the stocks in the ETF weakened. Still a bit confused about it.

Edit:
I looked into it a bit more and it looks like VGS has a strange closing price. It was down ~3% right before it closed and closed much higher for whatever reason

FFA · « **Reply #2025 on:** June 25, 2016, 06:46:02 PM »

VGS close on Friday was nonsense. I bought a parcel at 54.80 not long before the close, but then 8x traded at 56.92. No idea why someone wanted to buy 8x at this price but it has artificially inflated the closing price.

Juan Ponce de León · « **Reply #2026 on:** June 26, 2016, 03:09:01 AM »

Closing prices for these ETFs are often well out, during the middle of the day is when they trade closest to NAV.

turboslob · « **Reply #2027 on:** June 27, 2016, 04:02:17 AM »

New here, but been a MMM reader for a while.

First question, is there anywhere where all of the acronyms are spelled out? I get some of them, others, not so much.

If I get a few responses, I don't mind editing this post and making a central spot, if it doesn't already exist.

Thanks.

FFA · « **Reply #2028 on:** June 27, 2016, 04:19:29 AM »

not that I'm aware turboslob.

VGS corrected itself today !

stashgrower · « **Reply #2029 on:** June 27, 2016, 07:20:10 AM »

turboslob - while you are reading do you want to compile the acronyms that are unclear to a newbie...and then put them under a different thread (label it Aussie in some way), and hopefully a couple of us will pipe up and expand on them? or would it get lost to have it separate from this thread?

deborah · « **Reply #2030 on:** June 27, 2016, 12:45:40 PM »

The ASX has a glossary of terms - http://www.asx.com.au/education/glossary.htm

happy · « **Reply #2031 on:** June 27, 2016, 08:19:52 PM »

or you can ask questions on Deborah's thread:

http://forum.mrmoneymustache.com/investor-alley/basic-australian-investing-thread/

cakie · « **Reply #2032 on:** June 28, 2016, 01:31:23 AM »

So... Vanguard released dividend estimates today. But I have a question about MVW - apparently there was a distribution in January? Looks as if it is part of a DRP. (I don't have a record of getting a dividend from them like I do Vanguard). How do I set this up to get the cash for the upcoming one? I was trying to avoid DRPs to keep things simpler! No idea how I set it up last year with Vanguard though, I've already forgotten.

cakie · « **Reply #2033 on:** June 28, 2016, 01:37:22 AM »

Quote from: cakie on June 28, 2016, 01:31:23 AM

So... Vanguard released dividend estimates today. But I have a question about MVW - apparently there was a distribution in January? Looks as if it is part of a DRP. (I don't have a record of getting a dividend from them like I do Vanguard). How do I set this up to get the cash for the upcoming one? I was trying to avoid DRPs to keep things simpler! No idea how I set it up last year with Vanguard though, I've already forgotten.

I think I've figured it out! I've got to go through the registry - Link Market Services in this case.

bigchrisb · « **Reply #2034 on:** June 28, 2016, 01:49:03 AM »

Anyone else struggling to understand the VAS dividend? 15.5 cents. Less than a third of last year's. I know that some payers such as BHP, ORG, STO and WPL slashed payouts, but I'm surprised the change was this large?

marty998 · « **Reply #2035 on:** June 28, 2016, 01:49:15 AM »

Computershare for Vanguard...

marty998 · « **Reply #2036 on:** June 28, 2016, 01:50:55 AM »

Quote from: bigchrisb on June 28, 2016, 01:49:03 AM

Anyone else struggling to understand the VAS dividend? 15.5 cents. Less than a third of last year's. I know that some payers such as BHP, ORG, STO and WPL slashed payouts, but I'm surprised the change was this large?

There will be a revision to the estimate on 30 June and another revision when it goes ex.

Don't know why they even bother publishing the estimate....

bigchrisb · « **Reply #2037 on:** June 28, 2016, 02:27:28 AM »

Quote from: marty998 on June 28, 2016, 01:50:55 AM

Quote from: bigchrisb on June 28, 2016, 01:49:03 AM
Anyone else struggling to understand the VAS dividend? 15.5 cents. Less than a third of last year's. I know that some payers such as BHP, ORG, STO and WPL slashed payouts, but I'm surprised the change was this large?

There will be a revision to the estimate on 30 June and another revision when it goes ex.

Don't know why they even bother publishing the estimate....

Indeed! The error in the estimates seems to be pretty volatile too. Given that its all for dividends/distributions declared in the past, I don't see how they can get it so wrong? Makes me like the more open accounting in the LICs annual reports!

terrier56 · « **Reply #2038 on:** June 29, 2016, 10:18:12 PM »

Are the ones that have come out today still an estimate?

VAS still in the gutter at 0.19C and surprise hit for VGS.

FFA · « **Reply #2039 on:** June 29, 2016, 11:36:09 PM »

yeah I don't know why they can't estimate more accurately.

I wonder if it's a timing issue especially with ANZ, WBC and NAB payments due on 1, 4, 5 july. (last year was 1, 2, 3 july instead). So maybe this year WBC and NAB are out in 3q instead of 2q, whereas last year they were all in 2q. I wouldn't be rushing to conclusions on the quarterly dividend due to these effects

coin · « **Reply #2040 on:** June 30, 2016, 02:38:45 AM »

Quote from: terrier56 on June 29, 2016, 10:18:12 PM

Are the ones that have come out today still an estimate?

VAS still in the gutter at 0.19C and surprise hit for VGS.

Really surprised by the estimate for VGS, none of my ETF's before today have given a dividend over a dollar before. I genuinely thought it was a typo when I first saw it, but I doubt it'd still be up there if it were.

marty998 · « **Reply #2041 on:** June 30, 2016, 03:45:29 PM »

Maybe the work experience kid at the fund accounting/administrators has mixed them all around.

The dividends in theory should get accrued in the index fund when the companies go ex, not when they get paid (at least I thought so)... ANZ, WBC, NAB all should be in the June Qtr...?

Either way...$0.19 is still way too low

Juan Ponce de León · « **Reply #2042 on:** June 30, 2016, 04:35:26 PM »

Anyone asked Vanguard what is going on with their divs?

Abundant life · « **Reply #2043 on:** June 30, 2016, 06:05:31 PM »

Quote

Anyone asked Vanguard what is going on with their divs?

I haven't, but I was comparing various efts and lics last night and most are down by about half compared to their dividends of the last couple of years.

Juan Ponce de León · « **Reply #2044 on:** June 30, 2016, 06:09:34 PM »

Glad I bought STW a few weeks back and got in on the 84c 6 monthly div. That VAS payout just makes no sense at all.

Abundant life · « **Reply #2045 on:** June 30, 2016, 06:49:43 PM »

STW was one of the ones that had an excellent dividend, glad you got in in time!

PDM · « **Reply #2046 on:** June 30, 2016, 08:35:35 PM »

Quote from: Trevor Reznik on June 30, 2016, 06:09:34 PM

Glad I bought STW a few weeks back and got in on the 84c 6 monthly div. That VAS payout just makes no sense at all.

Hey Trevor - good to see a familiar name around here (I'm pretty new) but recognise you from Whirlpool. Particularly dropping truth bombs on fools wanting huge mortgages and to speculate on property.

FFA · « **Reply #2047 on:** June 30, 2016, 09:58:31 PM »

Quote from: marty998 on June 30, 2016, 03:45:29 PM

Maybe the work experience kid at the fund accounting/administrators has mixed them all around.

The dividends in theory should get accrued in the index fund when the companies go ex, not when they get paid (at least I thought so)... ANZ, WBC, NAB all should be in the June Qtr...?

Either way...$0.19 is still way too low

Hi marty, I agree it should be accrued in the NAV once the company goes ex div. As for payment though, I understood Vanguard would need to receive the cash to pay out the cash ? And once the ETF goes ex div, then it should come out of the NAV. I don't know this for sure but that's my logic on how it should work...

marty998 · « **Reply #2048 on:** July 01, 2016, 02:43:01 AM »

Quote from: FFA on June 30, 2016, 09:58:31 PM

Quote from: marty998 on June 30, 2016, 03:45:29 PM
Maybe the work experience kid at the fund accounting/administrators has mixed them all around.

The dividends in theory should get accrued in the index fund when the companies go ex, not when they get paid (at least I thought so)... ANZ, WBC, NAB all should be in the June Qtr...?

Either way...$0.19 is still way too low
Hi marty, I agree it should be accrued in the NAV once the company goes ex div. As for payment though, I understood Vanguard would need to receive the cash to pay out the cash ? And once the ETF goes ex div, then it should come out of the NAV. I don't know this for sure but that's my logic on how it should work...

Payment date is 18 of July.. .so by then Vanguard has the cash from all the banks but not the property trusts like Westfield and Dexus which go ex on 30 June.

More I think about it the more I wonder how the hell Vanguard does it...

And how Vanguard gets the tax statement out before all the property trusts send their tax component statements out too...

Doing my head in on a Friday night

FFA · « **Reply #2049 on:** July 01, 2016, 03:56:53 AM »

Yes you're right they will have the cash to make payment. Only if they have some conservative accounting rules like they need to wait to have the cash in hand before committing to distribute it. e.g. in the unlikely event a company folds and doesn't pay it's declared dividend.

My next guess would be some capital losses being distributed, maybe on re-balancing of the index. Eg. if there are cases like SGH or others falling off the index.

News:

Author Topic: Australian Investing Thread (Read 2762632 times)