I'm a long-term holder and generally pleased with the long-term performance. I see three factors are affecting their returns vs benchmark (1) Their valuations are conservative. We've seen that when they've always had exits at substantial premiums to their holding price. (2) Trading at a big discount to their NTA at HK1 pointed out. (3) Holding lots of cash (that gives low returns). This is a consequence of the companies they've exited recently, rather than a deliberate strategy. I'm not sure about the merits of paying dividends for this type of fund, but i guess they did it based on demand and I know people can reinvest. I'm just annoyed that as a Kiwi I don't get the franking credit benefit.
BTI Price at posting:
$1.24 Sentiment: Hold Disclosure: Held
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