LIC & LIT Listed Investment Companies (LICs) 2020

@dunno

 

This reminds me of something I read in a pot-boiler spy thriller I read as a feckless yoof...

The man/hero was about to wine and dine a woman in Switzerland. He ordered a bottle of a very expensive / famous French red from the waiter. The woman says "Is that nice?" The man calls the waiter back and cancels the order, and reorders a bottle of something more pedestrian.

The woman says "Why did you do that? I might have liked it!"

The man says "You would have liked it, but you would not have appreciated it..."

Boom. (Book was "The Eiger Sanction"). It's sort of stayed with me...

I had an LIC query, to stay vaguely on topic, but I just typed it out and in doing so clarified the matter in my head and answered my own question. I think.

 

There was a flurry of new LIC's and ETF's with all kinds of models so bound to happen

ASIC warns Treasurer on risky funds

A new confidential ASIC analysis for Treasury of 48 LICs and LITs that floated on the stock market since 2015 found a "significant proportion" had negative returns, with a cumulative return of negative 6.1 per cent since inception, including two funds that were delisted due to fraud.

Of the 48 listed funds, 42 traded at a price below their net asset value, with the discount averaging 10.7 per cent, according to the August 2019 documents. ASIC said they involved a "conflicted selling incentive" - where "stamping fees" (sales commissions) were paid by fund managers to advisers and brokers selling listed funds to clients.

"Higher stamping (selling) fees for LICs and LITs are correlated with worse investment returns and bigger discounts to NTA [net tangible assets]," ASIC senior markets specialist David Dworjanyn wrote to ASIC colleagues and Treasury on August 5.

 

A more stable dividend is worth its weight in gold during a downturn as an accumulator. Would be very handy to aid in the purchase of the market (VAS) during down times.
Correct me if I’m wrong but generally speaking market yields seem to rise to the circa 5-6% during a depressed market as apposed to the high 3-4s we see today?

 

Golly gosh, these "LIC/LIT" things sound truly terrible.

 

Ahh an early Clint Eastwood movie

 

With regards to mentioning ‘single stocks’ in a LIC thread, can conglomerates such as WAshington H Soul Pattinson and Macquarie Group be included under the LIC heading?

 

They are probably more on topic to an LIC thread then the copious amount of talk surrounding home brew and wine (looking at you @Nodrog hehe)

 

Request denied. It's thread drift which is definitely not permitted.

Coffee on the go for me right now.

 

Discuss whatever you want provided SK approves, I’m of course only joking with my rambling. However SOL is close enough but MQG would typically not be on topic.

 

Why, depends on the definition of LIC? Eg LIC = Liquor Ingested Copiously.

 

Actually the way I have heard Macquarie is going it's getting beyond simply banking by moving into infrastructure, which it has been doing for some time, but also farming. It was snippets from a radio broadcast but I haven't followed it up.

Could be interesting to follow it but I haven't the energy - especially at this point in time.

 

In that case conglomerates such as WES could be discussed also. God forbid where do we draw the line. Grog and coffee was a no brainer but MQG & WES, the world’s gone mad!

 

He he. Why not? After all, LICs/ETFs, especially the ones I hold, are so boring I find there is little about them to discuss.

As to being mad, refer to my personal details. Applicable to all circumstances.

 

How about a REIT such as VCX ? For those property addicts?

 

I probably already got some if it is in the ETFs or LICs I hold.

 

Back on topic please or I’ll report you to the moderator.

 

Ha. A form of self-flagellation.

Definitely not on my To Do list.

 

Reminds me. Reporting season due soon.

Waiting, waiting, waiting.

It's the story of my life now. Close to zero excitement

The positive is that is not necessarily a bad thing.