Scroll
Share Price*
$1.58
as at 09/12/2019
Latest NAV
$1.5925
as at 04/12/2019
Ex-dividend NAV (after deducting 3.09cps dividend payable)
*updated every 20 minutes

Capital Management Strategies

Dividends | Share Buybacks | Warrants

One of the key ways the Board can add value for shareholders is through proactive capital management strategies. The objective is to increase total shareholder return and maintain the discount/premium to NAV within a reasonable range.

The Board of Kingfish have implemented the following capital management strategies:

  • Regular dividend programme
  • Opportunity to partake in our Dividend Reinvestment Plan
  • Share buyback programme
  • Warrant issues

Dividends

In June 2009, Kingfish announced a new long-term distribution policy. Under the policy Kingfish will pay shareholders 2% per quarter of its average NAV.  

The payments are made in March, June, September and December.

September 2019 3.23cps
June 2019 3.07 cps

March 2019

2.83 cps

December 2018

3.04 cps

September 2018

3.00 cps

June 2018

2.89 cps

March 2018

2.89 cps

A full history of Kingfish dividends is available.

DOWNLOAD DIVIDEND HISTORY »

Kingfish has a clear advantage over many other listed entities through their Portfolio Investment Entity (PIE) tax status. As a listed PIE, Kingfish dividends will be tax-free to New Zealand resident shareholders. Refer to ‘What does PIE mean?’ under the FAQ section of the website for further information.

Imputation credits will be attached to dividends to the fullest extent possible.

Dividends paid by Kingfish may include dividends received, interest income, investment gains and/or return of capital.

Dividend Reinvestment Plan (DRP)

The DRP offers shareholders an alternative to cash dividends. Shareholders who don't require the regular income can elect to apply all or part of any cash dividends in subscribing for fully paid ordinary shares.

The advantage of enrolling in the plan is that shares issued under the DRP are at a 3% discount to the current market price (being the weighted average selling price on the first five days immediately following the ex-dividend date). Furthermore, shares issued under the DRP do not incur brokerage costs.

To participate in the DRP:

  • Request a personalised Participation Notice
  • Send the completed Participation Notice to Kingfish's Share Registrar:
    Computershare Investor Services Limited
    Private Bag 92119
    Victoria Street West
    Auckland 1142

VIEW OUR DRP OFFER DOCUMENT »

Share Buybacks

The company will from time to time buyback its own shares on market if in the opinion of the Board the Kingfish share price does not appropriately reflect the company's underlying NAV.

Buybacks work well in circumstances where excessive discounts to NAV exist, as it adds value for shareholders by purchasing undervalued shares in the company. Kingfish will only buy back shares if the discount to the last published net asset value is not less than 8%.

The buyback period runs for 12 months from the date it is announced to the market. We currently have a share buyback policy in place until 31 October 2020.

Shares purchased under the policy are held as treasury stock and are available to be re-issued under the dividend reinvestment plan or to pay performance fees to the Manager.

Warrants

On 12 July 2019, Kingfish warrant holders had the right to convert their warrants into ordinary Kingfish shares at an exercise price of $1.25 per warrant. 

The new shares were allotted to warrant holders on 18 July 2019. All new shares have the same rights as current Kingfish shares, including participating in the company's quarterly dividend policy.

The remaining warrants which were not exercised have now lapsed and all rights have now expired.

The additional funds will be invested in Kingfish's current investment portfolio of stocks, in similar proportions to the existing portfolio.

Previous warrant issues:

 

Exercise Price

Exercise Date / Exercise Period

Total % Exercised

KFLWE

$1.25

12 July 2019

87%

KFLWD

$1.21

5 May 2017

76%

KFLWC

$1.18

6 November 2015

79%

KFLWB

$0.95

23 November 2010 to 3 September 2012

39%

KFLWA

$1.00

31 March 2006 to 31 March 2008

46%

What is a warrant?

A warrant is the right, not the obligation, to purchase an ordinary share in Kingfish at a fixed price on a fixed date.