Cross Posted from PunakaikiFund.co.nz
We have released our September 2017 interim accounts, which are the half-year financial snapshot. These show that the assets of Punakaiki Fund were $31.56 million at the end of the quarter, of which $29.25 million was investments.
The accounts show a profit of $1.145 million for the half-year, but we believe the more important piece of reading is the statement of cash flows. This shows that net cash used in operating activities was $213,000, which represents just 0.67% of total assets, or 1.35% on an annualised basis.
It helps that the cash costs were partially offset by dividend income of $138,000, which combined with a small amount of interest income represented 40% of the total cash spent on operating activities.
Most of the cash spent was on management fees, at $292,000. These fees are charged at 2% of the net asset value, plus GST, and paid each quarter in advance. The main other costs of $51,000 were for items such as insurance, audit fees and accounting fees.
Looking forward the good news is that we have received dividend income of over $200,000 for the current half-year to March 2018, so we will see another good net cash result for the current six months and the year-end accounts.
Obviously as the size of the assets under management grows we expect to see higher costs, as we increase the amount we pay for management fees, external suppliers, and we will also need to increase director fees. We do remain vigilant to ensure that the costs do not get out of hand versus the amount of assets, which is the primary reason we want to ensure we are at $100 million before we are a listed company.
Please get in touch if you have any questions.