Tag: ASX stocks trading below book value

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

Is the new Wilson LIC, WAM Strategic Value (ASX:WAR) a buy?

Whilst WAM Capital has proven form using the underlying investment strategies planned for this new LIC, there are a few reasons why I would 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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ASX LICs AND IMA TERMINATION FEES – GLOBAL VALUE INVESTING

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.

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