LIC & LIT Listed Investment Companies (LICs) 2020

Discussion in 'Shares & Funds' started by RogTheBear, 1st Jan, 2020.

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  1. SatayKing

    SatayKing Well-Known Member

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    Has a speed read of some of the posts in a few threads. Way too much overthinking seems to be going on.

    Whatever happened to keeping it simple and allowing time for simple to do its thing?

    Coffee required to calm myself down. Not really, I just want one. If others wish to tie themselves up in knots, far be it for me to try and stop them. They may enjoy it.
     
  2. Islay

    Islay Well-Known Member

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    So you have reinvested this weeks dividends then? Nothing left to do for a while?
     
  3. SatayKing

    SatayKing Well-Known Member

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    Yep. DUI and VGS.

    There is plenty to do however. Namadgi, while severely damaged from the bushfires, is partially open and it is astounding to see the level of new growth. Also, along with other matters, the J45 keeps me entertained.

    If you are referring to the share market, it's Sweet FA. Always is really.
     
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  4. Islay

    Islay Well-Known Member

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    Have just come home from a few days in ACT. It was great to see the green shoots everywhere after the fires earlier in the year.
     
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  5. monk

    monk Well-Known Member

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    Thanks for the reminder here re: "simple". Still have a little way to go to get there totally, great to see the "simple" part of the portfolio is just doing it's thing & paying dividends (of the monetary kind) with so much less trouble & concern.
     
  6. dunno

    dunno Well-Known Member

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  7. SatayKing

    SatayKing Well-Known Member

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    He he. I had a read of Magellan's announcement today (was asked by the manager of the TT I once managed).

    "Each of the Funds has elected to become an attribution managed investment trust ('AMIT'). Under the AMIT rules, investors will be assessed for tax on the income attributed to them by Magellan as a result of their holdings units in a Fund. Where the income attributed to an investor (and which may be included in the investors' income tax return) is more than the Target Cash Distribution paid by the Fund, the tax cost base will increase of the investors' units by a corresponding amount."

    Former (?) LITs simples? Far from it.

    Jesu, I thought I had trained the dude properly. MGG has always been under the AMIT arrangements and therefore issues end of FY tax statements. Suggested they get into the share registry and download the things asap.

    Once you cease hitting your head against a brick wall, the pain stops.
     
    Last edited: 24th Sep, 2020
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  8. SatayKing

    SatayKing Well-Known Member

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    OK, I think I see what is occurring here. MGG is an AMIT. Any cost base adjustment was included in the declared distribution and identified. If my reading is correct, it now means only if the distribution amount exceeds the Target rate will there be an upwards AMIT cost-base adjustment.

    So it's one of those very rare equities where the cost-base never goes down? ;)

    Over to you, my child. I ain't got nuffing to do with it.
     
  9. DJC

    DJC Well-Known Member

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  10. SatayKing

    SatayKing Well-Known Member

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    Was it something I wrote? :cool:
     
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  11. mtat

    mtat Well-Known Member

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    I thought we didn't like pointless noise in this thread?

    "Strong balance sheet ... quality companies ... reliable dividends ... income and long-term growth ... industrials ... competitive advantage ..."
     
  12. DJC

    DJC Well-Known Member

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    Easy to say those words and back it up with a few examples. Wonder if he would highlight where they got it wrong and what was learnt from it??
    Maybe he did with the “after 37 years ... have learnt that”?

    answering my own question
     
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  13. The Falcon

    The Falcon Well-Known Member

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    I dont think IML will change methodology and thats a good thing for investors. You know what you are getting. Whether their brand of value investing will outperform however is the punt that investors can choose to take or leave. And it is a punt. Performance has been diabolical of late. I'll admit to having a small position in IML Smaller Co's (3% of public markets Portfolio) and its hard to watch. Ha.....fortunately they have been well covered by other Small/Micro Cap investments.
     
    Last edited: 29th Sep, 2020
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  14. SatayKing

    SatayKing Well-Known Member

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    The quiet motto of all fundies.

    "We Do Precision Guesswork."

    Company XY missed our earnings estimate. No it didn't. Your guess was wrong.
     
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  15. Never giveup

    Never giveup Well-Known Member

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    May be I need to adapt this style as I am moving away from direct and starting to ETF/LICs for long term.....
     
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  16. SatayKing

    SatayKing Well-Known Member

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    I do believe the slack approach can work. My brood are dealing with holdings of a six figure sum starting with a number greater than one. Plus they are also a beneficiary of a Discretionary Testamentary Trust.

    I've never had the feeling there has been any stress involved with applying the complete sloth attitude.

    I've recently gone further and out-sloth them by now having all ETFs under DRP from this FY. Gotta keep ahead of the pack when it comes to being a lazy investor.

    Coffee time.
     
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  17. Never giveup

    Never giveup Well-Known Member

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    @SatayKing - thank you for sharing your thoughts and hats off to six figure holdings...one day I will get there :)

    re DRP - I did extensive reading on it and @Nodrog gave a good explanation while back re taxation where getting divis and choosing what to top up seems more like my style due to the stage of life I am and having home loan also plays a part.

    I know I shouldn't talk about ETFs in LIC however it goes hand in hand for me ;) and wealth of information this forum provides- I have tweaked previously mentioned 2 ETF and 1 LIC to 3 ETFs and 3 LICs and with time will sell the 3 direct shares I own(previously bought)..

    still simple and provide all required flavors from AUS, Global, Emerging, Small, Medium and Large Caps .....all set

    $5K every couple of months in the 5 out of 6 as I am already heavy on one ETF.


     
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  18. SatayKing

    SatayKing Well-Known Member

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    I'm sure you will.

    I'd better qualify some aspects just in case others get the wrong impression about results.

    My children were fortunate in a way.

    First, before they commenced kindergarten they received an inheritance from a thoughtful relative. Due to that they were taxed on any investment income as if they were adults (Yep, they even had a TFN before the eldest went to kindy.) So no "children's tax" applied. Lucky there.

    Second, all the income was reinvested via DRPs and when STW came on the scene, funds were also put into that. Again, DRP applied.

    Third, when taxation arrangements for refund of excess franking credits became effective, any tax return was also put back into the share market. Apart from one who realised all their holdings as soon as they could, the others have put their own money in and kept on with the DRP arrangements. So they had a six figure amount around the time I handed all the stuff over. All pure happen chance really.

    Subsequently my wife died and a Testamentary Trust came into being. They are beneficiaries of her Estate.

    And, lastly, another relative died and for some reason best known to them included my children as beneficiaries. Thankfully, being over dealing with Deceased Estates, I'm happy to have had nothing to do with that either personally or legally.

    I'm stating this situation just in case someone thinks "If that person has that, I'll do the same and get the same result." Not necessarily. The outcome depends on circumstances applying at various stages.

    Finally a word to all Grandparents. Stuff ya kids, leave it to your grandchildren if you can. And a couple of charities.
     
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  19. SatayKing

    SatayKing Well-Known Member

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    Bloody heck. More so than I realised. How many people in their life time are the beneficiaries of three inheritances? And, um, not to put too fine a point on it, in line for a fourth. :eek:

    Lotto? Meh.

    Sheese.

    That rather morbid thought struck me while making a morning coffee. Require another one now for obvious reasons.
     
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  20. monk

    monk Well-Known Member

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    Not me, there's only so many balls, throw toys, doggy treats & bones a grandpuppy can go through :D.
     

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