As requested here's some educational material on LICs. For those expecting a few paragraphs such as "LIC Investing in a Nutshell" I say don't be lazy. It doesn't take that long to read stuff like what's below and you'll likely become much wealthier for it. If any newbies jump into the general LIC Discussion thread asking about the basics I suggest you direct them to this thread first. Please add any further LIC education material here. If any links are lost I'll try to locate the replacement or post something similar. What you need to know about listed investment companies: What you need to know about listed investment companies - Morningstar.com.au A Guide to LICs: https://affluencefunds.com.au/wp-content/uploads/2016/03/201602-AFM-Guide-To-LICs_Download.pdf Inside listed Investment companies: Inside listed Investment companies Consider a LIC before you bite into equities - Cuffelinks Caveat Emptor: LICs versus ETFs - Cuffelinks The evolution of Listed Investment Companies - Cuffelinks The major weaknesses of LICs and managed funds - Cuffelinks OPTIONS: Watch those unexercised options in LICs - Cuffelinks https://cuffelinks.com.au/wp-content/uploads/LIC-201512.pdf (Options article) NTA Discount / Premium Issues: Why LICs trade at premiums or discounts - Cuffelinks Insights into LICs trading at a discount - Cuffelinks Capital management techniques in LICs: Capital management techniques in LICs - Cuffelinks Three risk measures provide a fuller LIC picture (advanced material): Three risk measures provide a fuller LIC picture - Cuffelinks
For those of you who like a bit more activity in your life, I can recommend reading up on Phillip Goldstein of Bulldog Investors. His funds focus is buying LICs at discounts to NTA then closing the gap via activism (similar to some of the stuff the Wilsons guys get up to here). An incredible track record (reasonable returns but uncorrelated and low volatility) over a reasonable period of time. Try here for an interview: Phil Goldstein of Bulldog Investors on Activist Investing: Interview ~ market folly
GVF LIC does something similar by the sounds of it. http://www.globalvaluefund.com.au/files/20140616_BellPotter.pdf I'm trying not to take this thread off subject but the GVF research report gives a little background into LIC (CEF - Closed End Funds) "activism".
All good I was referring to ME (not you) taking the thread off topic. Activism is a great educational topic for those interested in that area.