LIC & LIT Listed Investment Companies (LICs) 2021

Discussion in 'Shares & Funds' started by Ross36, 1st Jan, 2021.

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  1. Peter.tanaka

    Peter.tanaka Well-Known Member

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  2. SatayKing

    SatayKing Well-Known Member

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    Eliminates debt but only available to wholesale investors - so maybe LICs can grab some. Appears to slightly dilute retail investors.
     
  3. SatayKing

    SatayKing Well-Known Member

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    Appears the offer of the Convertible Notes was to overseas investors.
     
  4. Redwing

    Redwing Well-Known Member

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    AFIC Beats Broader Market with 15.2% Return for 2H20
     
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  5. Aston Marersa

    Aston Marersa Active Member

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    Slightly late I know but I hold the perhaps unpopular view on WHF eps 3.5c with the dps at 10c is simply a way of handing my capital back subject to prevailing taxation rates.
    At least the DSSP continued.
    And now at $5.45 it's about time for them to disclose more regular, perhaps unaudited indicative NTAs.
     
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  6. SatayKing

    SatayKing Well-Known Member

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    Adjustment to MLT holdings on the basis of:

    1,000 x 8.5 = $85
    1,000 x 5.8 = $58

    to

    1,000 x 8.5 = $85
    2,000 x 5.8 = $116

    AFI, DUI, STW and VGS got some love yesterday
     
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  7. SatayKing

    SatayKing Well-Known Member

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    Yep a well known philosophy and fair enough.

    I'm old school and reckon until the ATO issues a Class Ruling on Return of Capital with every dividend paid, the funds come from cash flow.
     
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  8. RogTheBear

    RogTheBear Well-Known Member

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    As lots of the "granddaddy" LICs hold lots of the Big 4 banks, and 3 of 4 of these report on a 3 month deferred cycle to the standard FY it's going to be interesting to see, come mid-May when WBC, NAB and ANZ report their results and dividends, what happens to the prices of said LICs once these results are known.

    Now that APRA is relaxing its restrictions on banks paying dividends, it'll be very interesting to see what those dividends will actually be, and more to the point, what effect these will have on profitability and thus dividends, and price for the big LICs.

    Given the current elevated prices for some of the major LICs such as ARG and AFI in a world where even a cursory understanding of how they work would indicate that they would be dipping into reserves for probably at least the current FY due to bank (and other) dividends being reduced or not paid at all, if the banks turn on the taps again as they surely will if allowed, I wonder if this will further increase the NTA premium in a world where interest rates on any deposit are now around 1%. A 3.5% yield on ARG must be looking pretty damn attractive to some right now, as FPs coax cash hoarders up the risk spectrum ...

    Or is this likelihood already priced in? Just pondering... :confused:
     
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  9. SatayKing

    SatayKing Well-Known Member

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    In order to add to the general confusion, allow some to get tied* up in knots, get them in a twist and probably clarify nothing the % allocations as per the last NTA announcements:

    ARG

    ANZ: 3.4%
    CBA: 4.2%
    MQG: 5.8%
    NAB: 2.3%
    WBC: 3.6%

    AFI

    ANZ: 2.4%
    CBA: 8.1%
    MQG: 3.8%
    NAB: 3.4%
    WBC: 3.8%

    AUI

    ANZ: 4.3%
    CBA: 8.2%
    MQG: 0%
    NAB: 2.0%%
    WBC: 3.9%

    DUI:

    ANZ: 4.1%
    CBA: 7.4%
    MQG: 0%
    NAB: 0%
    WBC: 0%

    MLT

    ANZ: 0%
    CBA: 8%
    MQG: 6.9%
    NAB: 3.4%
    WBC: 6%

    WHF

    ANZ: 4.6%
    CBA: 10.3%
    MQG: 3.2%
    NAB: 5.4%
    WBC: 4.8%

    VAS

    ANZ: 3.4%
    CBA: 7.6%
    MQG: 2.5%
    NAB: 3.9%
    WBC: 3.7%

    * Spulling [sic] corrected before @geoffw does.
     
    Last edited: 26th Jan, 2021
  10. Redwing

    Redwing Well-Known Member

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    I recall AFI saying some time ago they had reduced Banks from 28% down to around 19% per @SatayKing
     
  11. SatayKing

    SatayKing Well-Known Member

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    In one way so has VAS. Although Financial Services accounts for about 27%, when the top 10 are looked at, five of them are non-banks so its around 20% of the big fellas.

    The market decides.
     
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  12. nofriends

    nofriends Well-Known Member

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    to add to the confusion:

    BKI


    ANZ: 0.0%
    CBA: 8.0%
    MQG: 8.0%
    NAB: 4.3%
    WBC: 0.0%

    and yes, i still hold despite the sentiment
     
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  13. pippen

    pippen Well-Known Member

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    Plenty of worse investments out there! Hang on tight!!
     
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  14. SatayKing

    SatayKing Well-Known Member

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    Thought I'd mention that for smaller companies with a turnover of $50m or less the company tax rate this year has been reduced from 27.5% to 26%.

    From next year it will be reduced to 25%.
     
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  15. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Rob and Tom are buying all the MLT shares on the cheap so they can pay a super special dividend.

    PS consider a retired person who lives off MLT dividends alone, what do they do now?
     
  16. SatayKing

    SatayKing Well-Known Member

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    It'd have to be Tom as I don't recall seeing Rob's name in the announcements for Change in Director's interest for quite some time.
     
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  17. mdk

    mdk Well-Known Member

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    Depends on their position.
    Some might do nothing. Some might buy more share. Some might tighten future spending. Some might need sell a few shares, is my guess.
     
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  18. SatayKing

    SatayKing Well-Known Member

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    One outcome:
    nail biting.jpg

    or

    spread the love around a bit and hope they all don't go pear shaped at the same time and to the same extent.
     
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  19. Peter.tanaka

    Peter.tanaka Well-Known Member

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    should never put yourself in that position

    have some reits, lics and maybe one year worth of cash

    this way it doesn’t matter
     
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  20. SatayKing

    SatayKing Well-Known Member

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    It would be ideal if all thought along those lines - apart from the Reits aspects :) - but unfortunately some don't or are not in a position to do so as they may not have sufficient capital or income.

    To put a perspective on it we probably should bear in mind that an income of $600 per week puts that household slap bang in the middle with c 45%+ earning more and c 40% earning less. $600 per week would require at least $800,000 in the market @ 4% and now it would probably be closer to the $1m+ mark as a consequence of some dividend reductions.
     
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