LIC & LIT Listed Investment Companies (LICs) 2021

Confirmed in today's AFR
Tech, healthcare send shares to new record; CSL lifts

Following its $11 billion megamerger with listed investment company Milton Corp, Washington H. Soul Pattinson chief executive Todd Barlow has turned his attention to the senior living and aged care space.

Soul Patts is concentrated in three main areas: telecommunications, building products & industrial property, and resources. Mr Barlow told AFR Weekend emerging themes for the company are in agriculture (focus on horticulture), financial services and aged care.

The plan is to reallocate the group’s portfolio across different asset classes where investors cannot normally get direct exposure, including unlisted private companies, direct credit, as well as international equities.

“With Milton, you’re counting on $3.5-plus billion dollars of liquidity. You can’t take it all away from Australian equities, but a good chunk of it can be allocated to new opportunities,” Mr Barlow said​

Was just a cheap way of raising funds for WSP shareholders.

 

Thanks @ChrisP73 for the briefing. I don't have any subscriptions so am unable to read the AFR.

I just love the line "Following its $11 billion merger...."

So it has already happened has it? And shareholders haven't even voted yet. Riiiiiight, I get it.

 

Yeah I liked that too.

 

I would have been silly enough to believe it as once I sell something it doesn't exist anymore in my world.

 

While the listed investment company (LIC) sector has grown 32% during the past financial year, underperforming LICs - particularly those that persistently trade at a discount to their net tangible assets (NTA) - remain in the spotlight.
According to data from Morningstar (as of June 30), 64 of the 100 ASX-listed LICs that they track trade at a discount to NTA post-tax (pre-tax this number shoots to 80), with the average LIC on their list trading at a discount of -4.4%.
In fact, Morningstar found that over the past financial year, 12 of these listed investment vehicles have either shifted into a different structure or have been wound down.
In this episode of Buy Hold Sell, Livewire's Bella Kidman was joined by VFS Group's James Whelan and Stockspot's Chris Brycki for a look at some of the best and worst that LICs have to offer. These include LICs from the Wilson Asset Management stable, as well as Regal, Plato, VGI Partners and Antipodes.
It seems there is a LIC for everyone ... or is there?

 

You can if you hit the Esc button just at the right time ...

 

That would be akin to attempting to time the markets. I could never do that either.

 

Use incognito tab on browser to access a few AFR articles.

1. Open incognito tab
2. Search for title
3. Open link as normal

 

I presume in the MLT sale to WSP there's also a fair bit of CGT payable and access to dividends that had been retained for future smoothing

Washington H. Soul Pattinson at $33.37 and Milton at $6.20 (up from $5 at 21st June)

 

I would assume that the full dividend war chest will be distributed.

No idea how CGT is going to work internal to the deal but i assume the transfer is at the pre-tax value and the LIC CGT concession remains.

 

Yes, it was mentioned somewhere back in this thread SOL was acquiring MLT's holdings at pre-tax NTA.

As to LIC CGT concession, I reckon that disappears as SOL is not an LIC.

 

Why anyone would be prepared to pay a high premium for WAM is beyond me. Overpriced LIC, fee gouging mgr with mediocre performance. The only thing they excell at is promotional smoke and mirrors.

Compare WAM in particular with MIR whose fee is a fraction of WAMs:

 

I'd rather not thank you.

And MIRNA goes ex-div on 28 July.

Then it is merged with MIR and - unlike the SOL/MLT merger - I and the SMSF get more MIR. Simples really.

 

I really appreciate all the assistance. It is very kind and one of the great parts of this forum in that others want to help. However, I have to admit that I, um, er, don't actually read finance stuff a lot. Hence the reason I don't have any subscriptions.

 

Just keep an eye on those delicious chicken breast fillets price per kg via woollies catalogues.

 

Aw, bugger. What if the 37c special dividend has a large LIC CGT discount?

No, it is highly improbable but I do like to get others wondering about these things.

I live in Canberra so woollies are de rigueur presently if one goes to the supermarket. And why the bias against Coles? They is a supermarket too ya know. Discrimination writ soon to be issued.

 

Nice to hear from Peter Morgan. What a legend

Peter Morgan: The best asset I've ever bought

spotify - link
Peter Morgan: The best asset I've ever bought

 

If you have nothing better to do then smile. AFI.

 

Surprised they didn't pick up any inghams