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Aberdeen Australia Equity Fund Message Board

  • wright.tom64 wright.tom64 Feb 12, 2013 7:46 AM Flag

    If we count dividends

    IAF, from the low after the big crash which culminated in early 2009, is at about 14.00 a share. That does not get it back to the 17.00 level that it was prior to the crash but the Aussie market is also still about 20%+ below the over 6000 level it was then. I would urge investors to reinvest those dividends and turn them into more shares until they are satisfied that the fund makes up an adequate percentage of their total portfolio.

    Sentiment: Hold

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    • dutch773 Feb 19, 2013 12:40 PM Flag

      Yes, I agree, with reinvested dividends it has been a good long term performer. However, I have been concerned of late because:

      A. It has under performed Aussi market. Compare IAF chart with EWA.
      B. Return of equity in last qrt distribution. Was it a tax ploy or were they unable to meet expectations so the had to do it?
      C. It no longer comands the premium over NAV (XIAFX) that it has in the past.

      Last few weeks have been encouraging. I am thinking this run might be a time to sell after holding for so many years and find something with a little more momentum to catch the last of this general market rally.

      On the other hand, it may just be undervalued right now. This is not uncommon with such thinnly traded issues. Maybe the market will find IAF, see value and sustained run up may result.

      What to do, what to do...? As the market climbs its wall of worry....

      • 1 Reply to dutch773
      • I understand your concerns. I wonder if the distribution was the same % as EWA if we would see a higher share price. I have considered selling part of it as I have done in the past while also repurchasing shares on a correction. I know the Aussie market at about 5100 is still 1000 points or more below the high in the last boom so am not sure we don not have another 10-15% to go. I would probably be more willing to sell if the price was closer to 14 or so.

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