A list of 10 factors to check as a guide when to buy, scroll down for further explanations on each. (Written first a few years ago but still relevant for ASX LICs in 2021 & 2022 I feel!).
Continue reading “LIC Investing – 10 factors to check before buying.”
A recent AFR article reminded me once again about how ASX LIC performance fees are a very nice deal for the fund managers. The article quite rightly posed questions about how they are free to choose whatever benchmark they like. Then why they sometimes are rewarded substantially when the shareholders go backwards, and why there is no standardised format to present what their performance numbers actually are.
In fact it, is due to the issue of ASX LICs choosing all sorts of variations in performance reporting methods that I wanted to explore some LICs in particular. Have they earnt performance fees way out of line with the results they have achieved?
Continue reading “ASX LIC PERFORMANCE FEES L1 CAPITAL, THORNEY, WAM CAPITAL, VGI PARTNERS”Don’t fall for the hype of conflicted advice on ASX LICs IPOs and get hit with commissions
Warning fictional post about an IPO of an ASX Listed Investment Company (LIC). There is so much cheap money around I fear that if I don’t include such a warning, some will think this is real and want me to send them the prospectus! Continue reading “AVOID THIS ASX LIC IPO!”
Contango Income Generator Limited (ASX:CIE),has recently been trading at a discount to NTA of circa 16%. An upcoming Extraordinary General Meeting (EGM) is set for July 14th. The business of the meeting is to:
Continue reading “Contango Income (WCM Global L/S) & WAM Capital SELECTIVE buyback”This blog post is referring to a very old study of Closed End Funds (CEFs) that I read this year. CEFs are the equivalent of what Australian investors usually refer to as ASX Listed Investment Companies (LICs). The study discusses in detail the typical life cycle of CEFs. It talks about why they often swing from premium to discount, and then back to NAV in a fickle manner.
(post written first in 2019 and updated slightly for 2021, maybe the lessons are still not being learnt!)
It is quite possible that discounts on LICs might continue to contract in 2021, mainly due to a lack of supply. It is therefore no surprise that I am not expecting a great deal of LIC IPO activity next year. There was controversy surrounding sales commissions and LIC IPOs that got plenty of attention in 2019. (This was after a flood of new issuance in the few years prior, with many poor performers). For this reason, I doubt whether financial planners and investors have great appetite yet to take the plunge into new closed end fund products.
Continue reading “ASX LIC TRENDS FOR 2021 IN TERMS OF DISCOUNTS / PREMIUMS & POTENTIAL IPOs”