02/18 16:08 First Australia Prime Income Fund Announces Performance Data and <FAX.A>
First Australia Prime Income Fund Announces Performance Data and Portfolio Composition NEW YORK, Feb. 18 /PRNewswire/ -- First Australia Prime Income Fund, a closed-end bond fund (Amex: FAX; PCX), today announced performance data for the periods ended December 31, 1998 and the portfolio composition details as at January 31, 1999. First Australia Prime Income Fund's total return for various periods from its inception in April 1986 to December 31, 1998 are provided below. (All figures are based on distributions reinvested, including long-term capital gains): NAV Return Market Price Return Period Cumulative Annualized Cumulative Annualized Since inception (April 1986) 199.6% 9.0% p.a. 159.3% 7.8% p.a. 10-Year 87.6% 6.5% p.a. 89.8% 6.6% p.a. 5-year 8.0% 1.5% p.a. -11.8% -2.5% p.a. 3-year -6.0% -2.0% p.a. -18.3% -6.5% p.a. 1-year -7.7% -13.5% As of January 31, 1999, the average maturity of the portfolio was 6.0 years and the breakdown of the maturity and credit quality of the portfolio was as follows: Maturity 1 Year 1-5 Years 5-10 Years 10 Years 9.9% 37.1% 43.0% 10.0% Credit Quality AAA/Aaa AA/Aa A BBB/Baa BB/Ba 56.9% 23.2% 3.4% 4.0% 12.5% As of January 31, 1999, the portfolio was invested as follows: Country Currency Australia 82.2% 82.2% South Korea 9.0% 0.6% Philippines 3.7% 0.9% Thailand 3.0% 1.6% China 2.5% 0.1% Hong Kong 0.3% 0.3% New Zealand 0.6% 0.6% United States -1.3% 13.7% The Fund's cash distribution rate for the 12-month period ended January 31, 1999 was 12.3%, based on a share price of $5.88. As of January 31, 1999 the Fund's Net Asset Value was $6.75 per share. First Australia Prime Income Fund, Inc. is managed by EquitiLink International Management Limited and is advised by EquitiLink Australia Limited. The Manager has prepared this report based on information sources believed to be accurate and reliable. However, the figures are unaudited and neither the Fund, the Manager, the Investment Advisor nor any other person guarantees their accuracy. Investors should seek their own professional advice before acting on this information. EXPLORE EQUITILINK'S WEBSITE: http://www.equitilink.com Would you like to receive this information electronically? Contact email@example.com. SOURCE The First Australia Prime Income Fund, Inc. -0- 02/18/99 /CONTACT: Brian Sherman of The First Australia Prime Income Fund, 011-612-9950-2888; or Richard Strickler of EquitiLink USA, 800-522-5465; or Ralph Richardson or Patty Baronowski of Dewe Rogerson Inc., 800-323-9995, for First Australia Prime Income Fund/ /Web site: http://www.equitilink.com/ -- NYTH111 -- 7897 02/18/99 15:53 EST http://www.prnewswire.com Copyright PR Newswire 1998. All rights reserved.
do you think all of those statistics really say? We both know one thing to be a fact; FAX's market value decreased from approximately $10 to $5.30 and its NAV didn't fare much better. Please explain in your own words what kind of a future that you think FAX has based on what you posted.
I think FAX is a good buy at these levels. I feel that way because the AUS Dollar is closer to its lows than to its highs compared to the US Dollar. It's selling at a healthy discount to its underlying NAV. There are several other compelling reasons, but I've been wrong before. I'm interested in what you think. Please share.
Hello everyone - I posted the FAX statistics for point of information only. I think FAX has great value right now - especially if you have a IRA and don't have to pay taxes on the dividends. I'm 66, and I've been invested in and out in FAX since it's beginning, and made big loads of money.
Recently I walked it down all the way to 5.50, then purchased $80,000 worth. At this time I am not afraid of what it does. As long as I am getting those lush dividends, the NAV can stay where it is forever.
I want to invest even more now, but you guys have me scared to do that. I'm just thinking that I should pull out of open end mutual funds at these levels. Cheers- Cajun Joe
If you looking for decent capital gains from FAX, my advice is look elsewhere. Closed End funds in general pay out the max. in current income, principle value in general is secondary in what I've seen.
The US bond market has exploded on the upside in the last 10-15 years, but look at the NAV's of most bond funds, down. Over the long term they drop. If bond rates went up a lot in the next 5 years I'd expect most bond fund to decrease to almost nothing after payout and bond value drops. DOn't let that happen to your money.
If you want to secure your principle better then you may buy the bonds directly as they have a definite maturity. Otherwise use stop losses and move on. These are not Bank CD alternatives but more like stocks, iMO. Have a fail safe system in mind to protect your principle.
IMO, if the AUD goes up a lot then you'll see dividend increases, NOT money reinvested to protect NAV value. It's the nature of the beast.