I expect on balance discounts on LICs to 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 do not think 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”
Should I buy the Future Generation Investment Company (ASX:FGX)?
- I shall later note how the Future Generation Investment Company Ltd (ASX:FGX), can be a cost efficient way in getting exposure to Australia’s best fund managers.
- The management expense ratio is effectively very close to a maximum of 1%. The fund managers therefore stand a decent chance of outperforming after fees in this vehicle.
- You can expect a fully franked yield of circa 4% and a steadier ride compared with most equity funds.