RF1 - Regal Investment Fund

[System]

The Regal Investment Fund has been established to provide investors with exposure to a selection of alternative investment strategies, with an investment objective of building a portfolio which produces attractive risk adjusted absolute returns over a period of more than five years with limited correlation to equity markets.

The Fund's listed structure allows investors to access an investment management capability typically only available to wholesale investors.

The Fund will also provide investors with exposure to Regal's investment expertise, including their 15 year long track record of managing alternative investment strategies. The investment team members have, on average, over ten years' experience in financial markets both in Australia and overseas, with extensive experience of investing through many market cycles. The team has experience on the buy and sell side, fundamental investing, sales and research, long-side and hedge fund investing as well as investment banking and capital markets.

The Fund may appeal to investors who are seeking risk adjusted absolute returns from alternative investment strategies to diversify their investment portfolio. Investors should regard any investment in the Fund as a long term proposition and are to be aware that substantial fluctuations in the value of the portfolio held by the Fund may occur on a month to month basis over that period.

It is anticipated that RF1 will list on the ASX during June 2019.

http://www.regalfm.com/

 

[Dona Ferentes]

For Regal Investment Fund (ASX:RF1) and the declaration of its final distribution in respect to FY21.

The closed end unit trust structure ensures the vehicle and its beneficiaries are unburdened by the dilutive effects of capital inflows, with each respective interest in the Listed Investment Trust (LIT) being identified by the investor’s holding of units. However unlike LICs, in which earnings may be carried forward across reporting periods with the Board of Directors determining the payout ratio, LITs are required to distribute all taxable net income to unitholders over the relevant financial year, which can result in volatile distributions between such periods.

RF1 operates under the Attribution Managed Investment Trust (AMIT) regime and has posted a trailing 12 month increase in the net asset value (NAV) of 108.2%, as compared to a unit price increase of 136.8%, as at 30 April 2021. We anticipate a material final distribution on the basis of strong performance and high portfolio turnover in relation to FY21. Higher than expected distribution earnings, the absence of a smoothing effect and the fund’s capital growth profile makes for a compelling reinvestment argument.

Taking into account the time value of money, this could also result in compounded capital growth. We note the attractiveness of the trust’s distribution reinvestment plan (DRP), in which
(1) if the prevailing market price is ≥ NAV, plan participants will receive their distributions as newly issued units in the fund at the NAV price or;
(2) if the prevailing market price is < NAV, distributions on units subject to the plan will be used to acquire the fund’s units on-market.

This is non discretionary, being fundamentally built into the plan by the Responsible Entity. RF1 is currently trading at an indicative premium of 0.2%. On the basis of this premium being sustained, investors who elect to enroll in the DRP will receive new units at the ‘cheaper’ NAV price. Assuming RF1 continues to provide unit price and total returns in line with historical levels since inception, we forecast capital growth under distribution reinvestment as being highly accretive to unitholders. Note that this also assumes a like for like generation of dividend income and realised capital gains. An additional estimated 9.2% p.a. from inception to 26 May 2024 would be generated for those investors who fully reinvest distributions over this period.

from Bell Potter Weekly LIC Report 28 May 2021

- one way to grow FUM, I guess.

 

[Dona Ferentes]

Eligible unitholders in RF1 have the opportunity to increase their investment in the Fund via a 1 for 3 accelerated, pro rata non-renounceable entitlement offer at an offer price of $3.79.

The Entitlement Offer is comprised of an Accelerated Institutional Entitlement Offer and a General Entitlement Offer.

The Offer Price of $3.79 per unit represents a discount of 15.2% to the closing ASX price of RF1 of $4.47 on 5 October 2021. The Offer Price is equal to the NAV of the Fund as at 1 October 2021.

 

[samuilk]

https://www.regalfm.com/site/PDF/46dfe3e4-38f0-43e2-a0a2-447c8289f983/RF1DistributionAdditionalInformation

If I bought into RF1 now would I still be intime for the dividend payment?
Thanks

 

[Dona Ferentes]

If I bought into RF1 now would I still be in time for the dividend payment?
Thanks

Ex Date ............ 30/6/2022
Record Date ..... 01/7/2022
Payment Date ... 22/8/2022

 

[Austwide]

Looks like a few have jumped in for the div already, price risen by div amount in last 2 days.

 

[frugal.rock]

Chart update. Monthly bars.
Remind me to buy anything at all in a market crash.