Tag: dividend investing blogs

TIME TO BUY FIXED INCOME CLOSED END FUNDS LISTED ON THE ASX?

In this post I am going to explore how I think about the new wave of ASX listed fixed income closed end funds (CEFs). To be clear, I am not referring to various fixed income ETFs that are open ended. Regarding the CEFs in this sector, I am not very optimistic from this point in time. Well that is unless you are the fund managers offering them. They are clipping some juicy fees and as a result appear addicted to issuing more shares.

Continue reading “TIME TO BUY FIXED INCOME CLOSED END FUNDS LISTED ON THE ASX?”

LIC Investing – 10 factors to check before buying.

A checklist for buying ASX Listed Investment Companies (LICs)

A list of 10 factors to check as a guide when to buy, scroll down for further explanations on each.

1) Discount / Premium to NTA

2) Management Expenses and ALL other costs

3) Performance Track Record

4) Investment Style

5) Alignment of management’s interest with shareholders

6) Ownership Structure

7) Investment Management Agreement (IMA)

8) Size of the LIC

9) Future Dividend Capacity

10) Marketing / Reporting of the LIC

When I look back at my investing mistakes, one common theme is rushing into a new purchase. I find I have usually done better when a number of months pass until I begin accumulating a position in a new idea.

When investing in LICs I try to make sure I have considered numerous factors first. That helps me avoid getting itchy fingers and hitting the buy button quickly. Continue reading “LIC Investing – 10 factors to check before buying.”