Question 1: If I have $250,000 invested in my name only at a bank, and also have $250,000 invested in the same bank in joint names, are both covered under the bank deposit guarantee?
Answer: No. Under the Financial Claims Scheme, you (individually) are only covered for $250,000 in total with any one bank.
For joint accounts, the protection is split equally between the two holders, so you would be covered for $125,000 and the other holder for $125,000. Because you can only have $250,000 coverage in total, your individual account would be covered for $125,000 and your joint account for $125,000.
Question 2: Do you have any insights on the market pricing for NB Global Corporate Income Trust, which trades on the ASX under the ticker NBI? I bought in around $1.80 and it is now trading around $1.43, so am wondering if I should cut my losses?
Answer: The latest NTA for NB Global Corporate Income Trust is $1.73. It is trading at $1.43, a 17.3% discount.
I can’t account for the irrationality of investors who sell at a discount or buy at a premium. I wouldn’t sell unless you expect US bond yields to move significantly higher, and/or credit spreads to blow out materially.
On an income sense, it is now yielding around 6.7% (based on an ASX price of $1.43). Further, you can expect the income distribution to increase.
Question 3: Could you please share your view as to what is happening with the plunging share price of Goodman Group (GMG)?. As far as I can tell, it is a well-run business and is in the right space to take advantage of long term future demands for industrial real estate. Should I perhaps buy some more if this is a dip, or just sit and hold?
Answer: I am not sure why you think Goodman Group has “plunged”. It is trading at $19.78 today. Higher interest rates, plus the market being hard on “high growth/higher PE” companies are the main reasons.
According to FNArena, the consensus target price for the major brokers is $26.36. Range is a low of $23.00 from Ord Minnett/JP Morgan through to a high of $29.50 from Citi.
Be patient.
Question 4: What is the new stock code for Woodside? What is the cost price for the Woodside shares I get as a result of the split from BHP?
Answer: As an outcome of the demerger, Woodside has changed its name from Woodside Petroleum Ltd to Woodside Energy Group Ltd. The ASX code is now WDS.
The cost price for the Woodside shares you get will be set on 31 May, based on the closing price on the ASX.
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