LIC & LIT Listed Investment Companies (LICs) 2021

Yeah always been a fan of his and basketball and signed up to PC and didn't know what to use as a user name!

 

Four simple strategies deliver long-term investing comfort

Four simple strategies deliver long-term investing comfort

DYOR

of the LICs and ETFs mentioned i hold BKI , SOL and VAS ( with VAS fully DRPed )

 

Yes, quite a sizeable holding.

 

I can only hope, then I will be able to get them at a greater discount like in the good old days when not many investors knew they existed.

 

If you don’t mind, what lics do you hold and do you have any etf ?

 

And the US?



Stil lower than Ireland, Denmark & NZ though

 

He he. In February, if you have the cash, you may be able to swing back in to DUI and AUI given a brief comment in the respective 2020 annual reports by the relevant Chairman (wonder who that is?)

Gad, it's getting interesting. I've sort of missed that aspect.

 

I have some AUI (plus others) picked up in March so looking fwd to the next few years

 

LICs: AFI, ARG, MLT, MIR, PMC
ETFs: VAS, VGS

I have been favouring ETFs more in relatively recent times in that they now are a greater percentage of our portfolio than the LICs. But VAS is starting to bore me somewhat so when opportunity presents itself the LICs are of more interest. That said VGS being global developed equities is something that we need more of and hence rates high in importance. Global LICs don’t excite me much nowadays, there are better alternatives unless one is interested in playing the NTA discount game over the cycle. But that’s more a trader’s strategy and not without risk rather than that of a long term investor which is what I am.

That’s more than enough holdings for me nowadays. Anymore than that and I’m likely to end up in a state of confusion, even more so than normal.

 

Thanks mate

appreciate it

just wondering the recent dividend cut by Milton, has that changed your view on lics, especially Milton ?

will you sell more Milton or accumulate if price is attractive?

 

Hmm, I decided to keep my stress levels high by including WHF, DUI, AUI and ALI as well as STW.

 

NO. My only hope is that a dividend cut is enough for investors who don’t understand what long term investing is to do a dummy spit and exit on mass thereby driving the NTA discount to deeper levels. Really this is just human psychology at work. The patient will be rewarded at the expense of the impatient provided the asset is not rubbish!

I won’t be selling, the portfolio has been simplified enough which is the only reason I’ve sold anything in recent times. Yes I would increase our MLT holdings when opportunities arise although my priority is to increase our global exposure and holdings other than those where Aussie big blue chips dominate.

 

And fair enough. You’ve always been tougher than me in managing emotions hence this in addition to other traits is why I’ve always looked up to you to help in keeping a level head.

 

Thanks for the insight ... what are your views on reits at the moment ?

out of favour and some good quality reits are trading at good discount with long wale and increasing dividend

Will you consider buying into reits, I know you like simplification.... but

 

Noice. March was good buying. Some couldn't stand the strain and bailed. It was quite funny when I had a chat with the FP on Friday. All this came up during what was really a general conversation. He said his office was in meltdown with clients and it was difficult to talk some down from the ledge. He reckons he has only just recovered.

You may recall I was married to a lass who was a master () in these matters.

 

If you're referring to the LIC I think you are referring to, I doubt it will go broke in the short term with current asserts 44 times liabilities unless it's run by an incompetent "stable" genius.

 

At the moment? Yesterday, tomorrow, any day for that matter my view on Reits is:



A personal thing, others may have different views. For example I’ve heard @SatayKing is a huge fan of them. If only I’d listened to him way back .... .

Besides Reits make up around 8% of the local index from memory? Why would you want more than that? They’re not a separate asset class as often stated in my view, just another sector of the overall market. Hence investing in them is simply overweighting them relative to the index. Is this worthwhile, all sorts of arguments out there such as percent of economy not listed Vs listed index etc? Not for me but others may think differently.

I feel ill now.

 

As well as the weighting to property in VAS, LICs also hold some although the percentage varies. Remember when AUI sold its Scentre holding to DUI last year (joke).

VGS probably has an allocation of property as well.

On the income side of things, the annual and half-year reports from LICs do have a lot of words which is easy to cast aside as it is difficult to read.

Nevertheless, all of them, including DUI, AUI and that naughty MLT, have expressed caution on future dividends. ARG, DUI and AUI, which will report sometime in February, indicated they had a modest draw down of retained earnings to maintain dividends.

I wouldn't guarantee that support will continue although I hope I am wrong obviously.

 

Only around 3% directly but what is often overlooked is that many companies in general own property as part of their operations.

Then there’s the risk element to be considered. Investing in a single sector (not asset classes in my view although many will disagree) of the market is much riskier than investing in the overall market / index. Hence I avoid investing in sectors preferring wide diversity in our holdings. No nasty surprises.

 

So nice of SOL.

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