Making the most of Franking Credits + Research Paper

Discussion in 'Share Investing Strategies, Theories & Education' started by Nodrog, 22nd Feb, 2017.

Join Australia's most dynamic and respected property investment community
  1. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,377
    Location:
    Buderim
  2. Pier1

    Pier1 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    487
    Location:
    Traveling In Time
    Must be top of the market @austing no responses and just 68 views.
    Out done by Total Noob Questions, What Buy Trigger Should I Use and don't forget my favourite - How Long Before My $10k Invested At Top
    Of The Market Allows me To Retire on $100k p.a.

    I did try and warn you this would happen with your fan dangle Beginers Guide to LIC thread;)
     
    Perthguy, Nodrog and Snowball like this.
  3. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,377
    Location:
    Buderim
    I don't think I'll ever get WHF at a deep discount again.

    I haven't read this article fully myself yet, too busy answering questions.

    I'm thinking of putting your name as author of the guide with please PM me anytime:D.
     
  4. OscarBravo

    OscarBravo Well-Known Member

    Joined:
    3rd Aug, 2016
    Posts:
    164
    Location:
    Sydney
    I love research like this. Incredibly interesting!


    But – if you are running backtests on 11 years of data (and whether 11 years is appropriate or not…) in order to use “sophisticated portfolio optimisation techniques” in order to deliver 20 basis points a year (0.2% for those playing at home!) then I wonder whether a) its worth it (don’t forget those pesky fees and transaction costs…) and b) why you would spend so much time searching for 20 bps.


    The pdf has an excellent section on the value of franked dividends which everybody should read though.


    Note also one of the “problems” identified with franking credit rich companies was a deviation from benchmark, “unpalatable to many funds”. A 2.5% tracking error!!! I’d prefer my active managers to have some sort of tracking error, personally, but I understand not everyone feels the same way.
     
    Nodrog likes this.