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Author Topic: Newfunds Govi ETF Dividend Payments  (Read 8934 times)

Fawkes85

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Newfunds Govi ETF Dividend Payments
« on: August 28, 2015, 03:51:57 pm »
Hey,

I bought shares in the NFGOVI ETF on the 1st of July. According to their factsheet the Ex Date and Record Date for the monthly dividend payout were somewhere at the end of July (can't remember the exact dates) and the Payment Date was 20 August. Well it's been more than a week and I still have not received any payments. Is anyone else invested in that ETF , and if you are, have you received your payment yet?
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Orca

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Re: Newfunds Govi ETF Dividend Payments
« Reply #1 on: August 28, 2015, 05:22:30 pm »
Further to the announcement published on Thursday, 2 July 2015, a distribution has been declared today,
Friday, 14 August 2015 to holders of ETF securities ("investors") recorded in the register on Friday, 24
July 2015, for the month ended 31 July 2015 as follows:

                                                                         NFGOVI           
Cents per ETF security, comprising of Interest        28.13900   

It does not pay dividends. The interest earned was re invested automatically. You would have noticed that you now have a few more shares. Do not forget the withholding tax on interest.
« Last Edit: August 28, 2015, 05:28:20 pm by Orca »
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Fawkes85

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Re: Newfunds Govi ETF Dividend Payments
« Reply #2 on: August 28, 2015, 05:34:52 pm »
So it never pays out any dividends? They just always give you more shares? If that is the case I have not noticed anymore shares either. Still have the same amount.
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Orca

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Re: Newfunds Govi ETF Dividend Payments
« Reply #3 on: August 28, 2015, 06:16:40 pm »
\\In accordance with the investment policy of the ETFs, the distribution has been re-invested on behalf of
investors via the purchase by the ETF of additional Constituent Securities, or Index Constituents for
NFTRCI, (as defined in the relevant Portfolio Supplement) in the appropriate weightings, thereby
increasing the net asset value of the ETF and, proportionately increasing the value of each ETF security.\\

I thought they would pay you in shares as they do in the UK but on further reading, I see that the interest was added to the price of each share.
I am interested to know why you bought this as it hardly beats inflation. Cash would be better as you would not have market crash issues to worry about.
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Fawkes85

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Re: Newfunds Govi ETF Dividend Payments
« Reply #4 on: August 28, 2015, 06:28:56 pm »
Well I guess I should've added the caveat that I am new to the world of investing. Only been doing it for about 3 months. I invested in it because I wanted a part of my portfolio to be invested in bonds that could provide me with a couple of hundred Rands income every month. In their fact sheet they showed how the 'Income distribution' over the past year were between 25 and 35 cents every month (for what I assumed were per security). So I invested in that expecting to get that 25 to 35 cents a month per security income. I did not know that they would reinvest it.

But here is what I now do not understand. If they reinvest that money every month shouldn't the price per security steadily rise pretty well over the long term? Looking at the chart, in the space of three years, the price per security only went up by a measly R7.

Also, if I want to invest in a bonds ETF that can provide me with a monthly income, can you recommend some for me?
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Orca

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Re: Newfunds Govi ETF Dividend Payments
« Reply #5 on: August 28, 2015, 07:42:54 pm »
Newfunds Govi has averaged around 5% pa over the past 5 years with interest reinvested. The last time I looked, the cash on the JSE was at 5.65% pa.
Newfunds Govi has some negative months and can do 9% in a year which it indeed has but cash will not go negative.

We are not financial advisers so cannot give advice. Each person has their own goals and circumstances so we merely discuss stocks to narrow down our search of the 400 plus stocks available to us and make our own decisions as to what suits our circumstances.

My personal goal is to make more than any ETF can offer for capital gains but also need some stability in a passive ETF such as the DIVTRX. This was discussed by Patrick and it fitted my profile so I advised myself to invest 55% of my portfolio into it. I hope you understand what I mean.

Your need of monthly income will be better discussed with Mr_Dividend as he might tell you what works for him and then you can advise yourself if it will work for you.
Good luck.

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