The Independent Kiwi Saver

13th June 2008
Signed up with ABN AMRO for the personalised plan. Handed over a cheque for $1043.00.

Advised shortly after by ABN AMRO that the tax credits are assigned pro rata. So agreed with ABN Amro to split the initial contribution so that $86.66 is credited to the account now, and the remainder ($856.34) is credited in July. This means the IRD will contribute a 'tax credit' of $86.66 for the July 2007 to June 2008 'tax credit' year. And the remainder will matched by the IRD for the next 'tax credit' year. I will have to remember to add an additional $86.66 before end of June 2009 to get the maximum 'tax credit' available.

Advised ABN AMRO that my full allocation is to be assigned to the Kingfish Limited (KFL).

To me KFL seems to be an amazing opportunity at present. Not only is it traded at a massive discount to NTA (Net Tangible Asset) i.e. the market valuation of the investments KFL holds, but it also represents a bargain basement valuation of the underlying investments earnings.

Here's the breakdown of the top 5 holdings which represent about 2/3rds of the portfolio:

I'll continue to buy KFL using my KiwiSaver funds until the share price strikes above $1.10 which I've calculated as fair value (by looking at the earnings produced by the underlying investments).

20th June 2008
1st purchase of KFL. My $86.66 has brought me 81.501667 shares at $1.05. Charged $1.08 in brokerage giving me an average cost of $1.063291.

7th July 2008
Now that my remaining $956.34 can be credited to my account, I have received news of a second KFL purchase. And what a bargain! At 94 cents per share I've acquired an additional 1,004.665691 shares. Charged $11.95 in brokerage.

Now my portfolio consists of 1,086.167358 KFL shares at an average buy price of 96.0257 cents per share.

30th July 2008
Just read the Kingfish June newsletter, it's interesting to get a full breakdown of its' investments.

15th September 2008
Finally received the 1st installment of the government tax credit for the 2007-2008 'tax credit' year of $85.71. Used to fund a further purchase of KFL at 97 cents (87.256314 shares).

22nd September 2008
Received the government kick start of $1,000. And the first government fee subsidy of $20.00. This was used to fund a further purchase of KFL at 99 cents (1,017.424242 shares).  Brokerage $12.75.
I've now brought a total of 2,190 shares at an average purchase price of 98 cents.

At the current share price of $1.02 my portfolio is now worth $2,234.67. Not bad for an outlay only a few months ago of $1040.

1st October 2008
The 1st fees have kicked in. I've been charged an Administration fee of $18.08 and a Custodial fee of $4.26. 23.271365 KFL shares have been sold at 96 cents to pay these fees.

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