LIC & LIT Amcil Limited (AMH)

Investor presentation:

http://www.asx.com.au/asxpdf/20160309/pdf/435pprh1z7tcw1.pdf

 

In the last 12 months it appears they have a more industrial focus, selling down on resources and reducing exposure to the main banks. I don't hold any yet but it seems to have a good range of businesses on their register.

 

Maybe a good idea to list current MER for each LIC. AMH currently 0.65% down from 0.67% last year.

 

Gotta leave something for others to do plus a number of them keep changing. MER easily found in numerous places.

Probably the best sources below:

Monthly LIC Reports

Managed funds market update.

Like MIR being internally managed AMH fees may continue to decrease as FUM grow.

 

This has come up on my radar as an alternative to WAM and MIR for small to mid cap exposure.
Looks like they are related to Mirrabooka? I say as they are both at 101 Collins Street and i think on the same floor.. Listed in the mid 90s with a long track record of outperforming the S&P 200 Accumulation index.

 

Same people run it as Mirrabooka, so probably not an alternative per se.

They run AFI, MIR, AMH and DJW - each LIC with a different focus. AMH is their high conviction portfolio, I believe, with less of a focus on dividends.

 

I look at it bit like an active blend of AFIC and MIR. AMH can invest in whatever it wants but typically a blend of large cap and small cap. It may be overweight one area or the other depending on opportunity.

One thing I do like is its size in that it's not too big. Plenty of room to grow and able to be more nimble and active compared to the likes of AFI which is getting very large. Fee very reasonable compared to the new breed LICs and has outperformed. So far has slipped under the radar with it not trading at a large premium like others.

But as mentioned in the previous thread it is a bit more growth focused and the dividend more a bit more volatile than the likes of AFIC.

Here's AMH's dividend history:
Dividend History

 

I have mixed thoughts on LICs div smoothing. I understand it is good for those living off the divs. However this appears to be at times when there are great buying opportunities, ie those LICs that smoothed during the GFC would have delivered much better returns to investors by allocating the capital to cheap stocks.

What are others experiences on this?

 

There's a lot of retirees who are shareholders that like the consistent income. As for missing out on buying opportunities that's not an issue. They get cash from the DRP and can do SPPs, Rights Issues etc to raise capital. Conservative use of leverage is allowed with some. And unlike managed funds, LICs being close ended don't have to worry about redemptions at the worst possible time.

That said, I personally don't get too concerned about dividends being a bit irregular for good reasons. A sensible investor should have their own cash buffer (eg 1 - 5 yrs living expenses) for smoothing income if required.