ASX LICs PERFORMANCE 5 YEARS TO 2024, WHICH IS THE BEST vs INDEX ETFs?
Value Investing for a living
by vilteam
2M ago
Here is my medium / long term ASX LIC performance comparison of the most popular LICs against relevant ASX index ETFs. Some years ago, I set up a sharesight portfolio of a lot of the large, popular ASX LICs to see at a glance how their performance looked in terms of total shareholder return. Those wanting to go back and look at ASX LIC performance comparisons for 2022 or ASX LIC performance on a longer term timeframe to 2023 can click on those links respectively. One important point to note about this is that it will include any movements in the discount / premium to NTA in the numbers. The lo ..read more
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DOES SHAREHOLDER ACTIVISM WORK?
Value Investing for a living
by Steve Green
3M ago
A few factors in recent times have led me to reflect on whether some funds known for shareholder activism perform well. Sometimes it is ironic to see these funds trade at large discounts to NAV, yet often the activists have criticized other funds for this very reason. In Australia, we are close to a decade from when a few activist style LICs launched, so surely that is long enough to judge to some extent? An overseas activist fund is slowly building up some stakes in ASX closed end funds, so I thought it would also be interesting to check out some US activist funds. Saba Capital Saba Capital M ..read more
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SHOULD PGF ASX TAKEOVER VG1 ASX?
Value Investing for a living
by vilteam
3M ago
This is a follow up post from a couple of weeks ago from my question whether IS LIC VG1 ASX ABOUT TO WIND UP OR CONVERT TO OPEN ENDED? – Value Investing for a living? What has happened since this above post? VG1 ASX DIVIDEND HISTORY On October 24th, VG1 ASX announced an update to target dividend policy – vg1 now targeting at least 5 cents per share, semi annually. At the time this would equate to a 6.5% annualized dividend yield, or 9.3% IF dividends are fully franked and the yield is grossed up for this. My emphasis above is on the IF in capitals, in terms of whether dividends may be fully fr ..read more
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ASX LISTED INVESTMENT COMPANIES (LICs) PERFORMANCE FY 2022
Value Investing for a living
by vilteam
1y ago
The following table coming up captures the performance of many of the most popular ASX Listed Investment Companies (LICs) for the financial year of 2022. When ASX LICs provide their own performance reporting within their ASX announcements, there is a range of ways they may choose to calculate such numbers. They could in theory leave out certain factors. For example, they could choose to display the numbers before investment management base and performance fees, directors’ fees and many other costs associated with keeping an ASX listing. They could remove the effect of dilutive capital raisings ..read more
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LIC Investing – 10 factors to check before buying.
Value Investing for a living
by Steve Green
2y ago
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!). 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 bac ..read more
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AVOID THIS ASX LIC IPO!
Value Investing for a living
by Steve Green
2y ago
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! Ok I come across so many articles about what to look for in an investment to buy, so I figured one that covered what factors to be wary of might be interesting.  The LIC universe has been expanding at a rapi ..read more
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Have We Learnt Nothing from Investing in Closed End Funds / ASX LICs in the Last 30 Years?
Value Investing for a living
by Steve Green
2y ago
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!) Closed end funds e.g ASX LICs vs open end funds / ETFs I previously linked to this study on this blog, but here it is ..read more
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ASX STOCKS THAT COULD PAY HIGH FULLY FRANKED DIVIDENDS IN 2021 & 2022
Value Investing for a living
by Steve Green
2y ago
Whilst I don’t label my investing style as one that specifically targets high dividends, I have noticed that SMSF investors in particular often embrace such a style. What I do sometimes blog about though is certain “special situations” or “hidden value” that lurks underneath the surface. I thought therefore I would discuss a few situations I have noticed and participated in recently that combine such strategies. It might be of interest for those SMSF investors that hunt for high fully franked dividend yields by simply looking at the historical dividends. With such an approach, they might be un ..read more
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ASX LIC PERFORMANCE FEES L1 CAPITAL, THORNEY, WAM CAPITAL, VGI PARTNERS
Value Investing for a living
by Steve Green
2y ago
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 ..read more
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Contango Income (WCM Global L/S) & WAM Capital SELECTIVE buyback
Value Investing for a living
by Steve Green
2y ago
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: 1. change the Company name from “Contango Income Generator Limited” to “WCM Global Long Short Limited”; and 2. conduct a selective buy-back of all of the Company’s fully paid ordinary Shares (each, a Share) held by WAM Capital Limited (WAM) (Selective Buy-Back). Number 1 seems like a good idea. The Contango brand is perhaps not the best out there in ASX LIC land. WCM Global Long Short Li ..read more
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