LIC & LIT Ironbark Capital = IBC

IBC Ironbark Capital Ltd Kaplan Funds Mgt
Large/mid cap, hybrids, long only; may use derivatives ASX300 Accum

Ironbark Capital IBC
as at 30 Jun 2016
Code Company % Portfolio
TLS Telstra Corporation. 13.4
CBA Commonwealth Bank. 9.8
WBC Westpac Banking Corp 9.8
IAGPC Ctg Pre 6M Per Q T 4.9
ORGHA Hy 3M 12-71 Q Rd T 4.6
BHP BHP Billiton Limited 4.2
CBAPC Cn 3M Per Q Rd T-20 4.1
ANZ ANZ Banking Grp Ltd 4.0
SUNPC Ctg Pre 3M Per Rd T 3.9
IANG Cbnd 3M Per X 3.8
DUE Duet Group 3.1
CTXHA Hy 3M 09-37 Q Rd T 3.0
WBCPG Cn 3M Per Q Rd T-21 2.9
NAB National Aust. Bank 2.6
NABPA Ctg Pre 3M Per Rd T- 2.0
ANZPA Ctg Pre 3M Per T 1.9
SDF Steadfast Group Ltd 1.8
CWNHA Hy 3M 09-72 Q Rd T 1.7
AQHHA Hy 3M 09-72 Q Rd T 1.6
BENPD Ctg Pre 6M Per Rd T 1.4


Portfolio
The portfolio is structured with an emphasis on income through yield orientated securities (hybrids and
corporate bonds, utilities, property trusts) and buy & write positions in Banks, BHP, Telstra and other
leading companies. The portfolio’s running yield was 7.2% inclusive of franking credits.
The buy & write strategy involves buying selective shares and selling, subject to appropriate timing, call
options over those shares. This strategy gives away some of the upside potential from a shareholding
but generates option premium income consistent with the income emphasis of the portfolio.
The portfolio is diversified across 27 different entities. Higher risk exposures in banks, industrials and
resources are largely held through buy & write option positions for income enhancement or added
protection. The portfolio’s hybrid and corporate bond holdings are floating rate securities with little
duration risk.
Approximately 42% of the portfolio was held in hybrids and corporate bonds and 30% in buy & writes
in Banks, Telstra and BHP. Of the balance, 22% was held in cash & option delta, 1.9% in mid-cap and
small companies, 1.2% in property trusts and 3.2% in utilities.
Asset allocation reflects a cautious stance.


Hybrids & Corporate Bonds ( in greater detail )
AGLHA AGL Energy Limited - Subordinated Notes 814 1.2%
AMPPA AMP Limited Capital Note 315 0.5%
ANZPA ANZ Banking Group Limited - Convertible Preference Securities 1,248 1.9%
AQHHA APA Group - Subordinated Notes 1,018 1.6%
BENPD/PE Bendigo Bank - Convertible Preference Securities 939 1.4%
BOQ (10/05/26)Bank of Queensland - Subordinated Notes 769 1.2%
BOQPD Bank of Queensland - Convertible Preference Securities 831 1.3%
CBAPC/PD Commonwealth Bank Perls VI & VII 2,692 4.1%
CTXHA Caltex Australia Limited - Subordinated Notes 1,947 3.0%
CWNHA/HB Crown Limited- Subordinated Notes 1,087 1.7%
IAGPC Insurance Australia Group - Convertible Preference Securities 3,197 4.9%
IANG Insurance Australia Group - Perpetual Reset Exchangeable Notes 2,502 3.8%
MQGPB Macquarie Group Limited - Capital Note 2 609 0.9%
NABPA National Australia Bank Limited - Convertible Preference Securities 1,322 2.0%
ORGHA Origin Energy- Subordinated Notes 2,972 4.6%
RHCPA Ramsay Healthcare Limited - Perpetual Preference Securities 582 0.9%
SUNPC/PE Suncorp Group Limited - Convertible Preference Securities 2,540 3.9%
SVWPA Seven Group Holdings Limited - Perpetual Preference Securities 247 0.4%
WBCPG Westpac Banking Group Corporation Limited - Convertible Preference 1,900 2.9%

total 27,531 42.2%

 

i originally planned ( and actully invested ) a fair amount into selected ( high yielding ) hybrids , however as time went on i was converted or redeemed out of most of them .

i have also CAMPA ( to be redeemed in April 2017 ) , MBLHB and SVWPA left

but invested in here for a managed hybrid exposure ( CAM also holds some hybrids )

for the time interest rates will rise again ( in the future )

 

l

 

Hi are you still invested in Ironbark Capital and are you happy with this LIC?

 

yes i still hold and in fact added smallish parcels in May 2018 and July 2020

happy ?? more accurate would content

this LIC is about half my exposure to interest-bearing securities currently , , in interest-gearing securities i was much more active in them between 2011 and 2016 but between redemptions , maturity dates and lack of suitable replacements i have mostly abandoned this niche

IBC does what it does ( i am currently just above break-even on share price ) and doesn't cause major concerns ( so far )


in more conventional times i would have more bond exposure and less IBC and REITs , but here we are , and this is an acceptable solution for me ( but it is maybe 1% of my current share portfolio , just so you have some perspective )

cheers

so in 7 years the share price has trended down ( but i buy in the odd dip so that is not a problem for me ) and the divs are like this ( they DID pay before 2016 but those details are harder to find )

IBC IRONBARK CAPITAL LTD ORDINARY
Change


Balance Date Dividend Type Cents per share Ccy Franked % Ex-Dividend Date Books Close Date Pay Date
31/12/2020 Interim 1.000 AUD 100.00 25/02/2021 26/02/2021 23/03/2021
31/05/2020 Interim 1.000 AUD 100.00 15/06/2020 16/06/2020 26/06/2020
31/12/2019 Interim 1.200 AUD 100.00 19/02/2020 20/02/2020 12/03/2020
31/05/2019 Special 1.450 AUD 100.00 14/06/2019 17/06/2019 26/06/2019
28/02/2019 Interim 1.800 AUD 100.00 18/03/2019 19/03/2019 02/04/2019
31/07/2018 Final 0.850 AUD 100.00 30/08/2018 31/08/2018 18/09/2018
31/12/2017 Interim 1.100 AUD 100.00 15/02/2018 16/02/2018 05/03/2018
31/07/2017 Interim 0.750 AUD 100.00 30/08/2017 31/08/2017 20/09/2017
31/12/2016 Interim 1.050 AUD 100.00 27/02/2017 28/02/2017 20/03/2017
30/11/2016 Interim 1.000 AUD 100.00 14/12/2016 15/12/2016 16/01/2017

so pays some divs , even if it can be lumpy ( they don't div. smooth ) reasonably reliably

and that is all i require of them

 

these have all been redeemed or matured now

so the bond and hybrid exposure is via IBC and CAM , and very small even when the two LICs are combined for bond/hybrid calculations

 

Thankyou for your time.
I was wondering if you know where I can get a list of all the LIC's on the ASX.
Also is there a LIC that has just AReits?
I am looking at buying a mix of AReits and Lic's
I have at present AReits will add to them this week and looking at Lic's
regards
Len

 

Start here.

ASX investment products directory

 

when InvestChat was still going Austing was an immense help in LICs with assorted information

i like a mix of LICs ( slightly more than ) REITs with ETFs less than half the REITs

*** Also is there a LIC that has just AReits? ***

not that i am aware of , but some REITs are complicated enough to appear as pseudo-LIC ( invest in office , retail , residential and industrial properties ) check ABP for a diverse REIT portfolio , but there are bound to be others

i tend to shy away from the 'fund of funds' concept regardless of whether it is a LIC , ETF . or REIT , one Chief Investment Officer ( and some portfolio managers ) is expensive enough for me

i would rather back a strategy ( or straight index ) and decide which to mix and match ( but i have time to sit and watch the market , a worker doesn't have that luxury )

 

RFF might be an acceptable compromise , a fund specializing in rural assets ( which are leased to other companies )

 

IBC

CORPORATE EXPENSE RATIO (MER)
INVESTMENT

The investment management agreement with KFM provides for the payment of an investment management fee of 0.4% per annum of the value of the portfolio.

Performance is measured by reference to the one-year interest swap rate plus 6%. Performance fees are payable at a rate of 15% for outperformance by the investment portfolio above this benchmark. The investment return includes the benefit of franking credits received in the calculation. A highwater mark applies within each 3 year reset period.

ADMINISTRATION
The Board estimates the MER for FY2021 will continue to be less than 1%.

 

Hi last week I made a purchase of Ironbark capital.
Looking at buying CAM seems to give of a good dividend every qtr.

 

i hold CAM as well please research carefully

CAM has changed it's strategy a few times in the last few years

so far it hasn't been BADLY mauled ( strategy-wise ) however chopping and changing holdings takes some extra skills ( and timing )

also note CAM issues convertible preference shares or convertible notes so extra shares ( in the LIC ) are created regularly