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?”
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.
Continue reading “AVOID ASX LIC IPO CONFLICT OF INTEREST & BUY FGX ASX?”
I often mention to other investors that looking for opportunities in the ASX Listed Investment Company (LIC) sector has been a significant part of my strategy.
A reaction I have had on several occasions from them is to bring up an example of a LIC boasting great performance figures.
Continue reading “SHOULD I INVEST IN ASX LICs VS MANAGED FUNDS?”