The new Wilson LIC, WAM Strategic Value (ASX:WAR)
Whilst WAM Capital has some form using the underlying investment strategies planned for this new LIC, there are a few reasons to be cautious about jumping in. The performance fee is high, opportunities for this overall strategy have dried up somewhat compared to last year, and then there are the usual potential issues of buying LICs at IPO.
Continue reading “WHICH LICs COULD WAM GO TO WAR ON? WAM STRATEGIC VALUE REVIEW (ASX:WAR)”
The objective you hear from many value investors is to buy $1 of assets for 50 cents. The headline I used here is the opposite, what we should be avoiding.
Trading in a couple of wind-up situations I have observed this year has left me scratching my head. It has looked to me like investors paying around $1 for 50 cents of cash!
Continue reading “PAYING $1 FOR 50 CENTS WORTH OF ASSETS?”
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!)
Continue reading “Have We Learnt Nothing from Investing in Closed End Funds / ASX LICs in the Last 30 Years?”
Here are 10 investing podcasts that are useful for Australian share market investors in 2021
These are the 10 investing podcasts that I tended to listen to mostly in 2020, and will no doubt provide some good content in 2021. This is from the perspective of an Australian investor that mostly focuses on picking stocks on the ASX. You can however find many good podcasts here for investors all around the globe.
Continue reading “WHAT 10 PODCASTS ARE BEST FOR AUSTRALIAN SHARE MARKET INVESTORS?”
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”
At first glance this blog post might appear to be only relevant to Contrarian Value Fund Ltd (ASX:CVF) and Global Value Fund Ltd (ASX:GVF) shareholders. I thought it was worth posting though because all LIC investors generally should ideally make themselves aware about certain issues. Part of the attraction for a fund manager launching a LIC is it is very “sticky” AUM revenue. Investors cannot redeem their funds like the traditional open-end managed fund structure. This “stickiness” of AUM fee revenue for the fund manager can often usually last for a decade whereby many Investment Management Agreements (IMAs) set their terms at 10 years.
Continue reading “ASX LICs AND IMA TERMINATION FEES – GLOBAL VALUE INVESTING”