Tag: ASX LICs

LIC Investing – 10 factors to check before buying.

A checklist for buying ASX Listed Investment Companies (LICs) shares

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!).

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ASX LIC PERFORMANCE FEES L1 CAPITAL, THORNEY, WAM CAPITAL, VGI PARTNERS

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?

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AVOID THIS ASX LIC IPO!

How to buy ASX Listed Investment Companies (LICs)

Or not to buy?

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 (WCM Global L/S) & WAM Capital SELECTIVE buyback

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:

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WHICH LICs COULD WAM GO TO WAR ON? WAM STRATEGIC VALUE REVIEW (ASX:WAR)

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.

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Have We Learnt Nothing from Investing in Closed End Funds / ASX LICs in the Last 30 Years?

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!)

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