LIC & LIT Listed Investment Companies (LICs) in 2017

Marjet us flying high atm but if the market crash then do you think VAS VGS VTS VEU and LIC's will go down ?

I looked at the graph and PMC was for 0.30 and 0.90 cent at one stage.

 

Correct, in a wind up all positions would be exited for cash. Post tax NTA is what shareholders would receive.

 

I would expect that would usually be the case along with many asset classes. We can hope. Good times!

 

Generally this is the case from what I understand. I used to have an article by Daryl Dixon explaining how it all works but can’t locate it. It can get a little complex but the final result for the shareholder will depend very much on their tax situation including the structure which holds the LIC.

The older LICs god forbid if ever one of them was wound up give the best outcome due to their discounted LIC Capital Gains status. The other “trading” LICs are basically just treated like any Company being wound up.

PS: Sorry only just saw @Il Falco post.

 

Hi guys. Just got my first dividend payment statement from WHF. I though they deduct the MER from the payment (e.g. 0.37%pa or something like that) but it does not look like it. Do they only take it from the final dividend?

 

Minus any fees I assume in executing the winding up of the company including brokerage etc.

 

Or is the dividend paid (8.75c with this interim dividend) already after allowing for MER?

 

Impossible for the market to crash and the ETFs not, those will go do pretty much what the indexes they represent do.

LICs can technically do their own thing, the market isn't silly in pricing them however. It may have too much homebrew from time to time but it'll sober up given time

 

The latter. The Management, Auditing, Directors and other fees are deducted from the operating result before tax. Statement of Comprehensive Income in the company's reports is a handy reference point for these.

 

Thanks @SatayKing!

 

This needs a bigger brain than mine

The smallest of our LIC holds is HHV. I hadn't realised there was an HHVO timeline and schedule..... And I don't really understand it!!
So on my Commsec portfolio spreadsheet this morning up pops the info that I have a number of HHVO options available with no market value... Clearly I have received no offer here but then I find HHVO is open for trading with 12 million shares being sought and 231,000 on offer - and with no trades today.
Anyone willing to provide some clarity for this aging brain?
Many thanks if so
Rick

 

Yep I agree ...Exactly why I was asking the question.

 

Apologies if I misinterpreted your question.

If Kerr leaves Platinum, the public will not know about it beforehand. If you want to manage the risk of Kerr's departure to your portfolio, do some research on his influence on the process at Platinum. I guess you could keep an eye on his holdings or other signs of a departure.

Ask yourself the queation: what would you do if you knew Kerr was leaving tomorrow?

 

I invest in these things to avoid having to monitor what a key person might be doing behind the scenes etc. They’re passive investments for us. This just reinforces the importance of not overpaying for an Asset and spreading risk across Mgrs including index product.

If Kerr Neilson leaves and PMC tanks to a sizable discount I for one will be a keen buyer. Unike when Platinum first started there’s no shortage of replacements for Neilson around nowadays. Money talks especially when a fund has $27 Billion FUM.

Then again I’m probably wrong. However I manage risk so that the failure of any one Mgr doesn’t pose a major threat to our overall wealth.

 

Thats cool, @ErYan

Get ready to pounce...Ive been kicking myself for choosing MLT over PMC recently.PMC up 13.48% - MLT 4.59%
First world issues : )

 

Just get them both! Aust industrials mandate heavy on financials + int index with Asian tilt! Give it 20 odd years and live life you may be pleasantly surprised of the outcome!

 

I planned on buying both, just got the order incorrect.
I can only purchase after Ive saved the $ first. I dont mind waiting as I feel its a reward for saving, like the anticipation prior to a holiday somewhere

 

Don't beat yourself up about it.

It's not that you got it incorrect.

If you followed your process and stuck to your investment strategy, then you got everything right!

Nobody knows what's heading up or down in the next week, month or year.

 

Only look at the share price when you're going to buy something. Otherwise forget it, then go and do something useful. PMC, as can any other share, can burn you mentally by continuing to peruse the share price causing you to suffer buyer's, or I-didn't-buy-it, regret.

Seriously. Overall I hold a six figure sum of PMC shares. I well remember when it's price fell into the $0.90 - and I gobbled up as much as I could - plus it didn't pay a dividend for a while . It can happen again.

As an aside, there is a supposed general rule of thumb that if a company misses two dividends, get rid of it but I don't necessarily follow rules.

 

Doubt my brain is any bigger than yours but will attempt to explain this offer.It's a bonus options issue to existing share holders.A capital raising if you like where if you have been given these options you now have until March(?) next year to purchase these additional shares at $1.18,thus if share go up in this time you can still purchase your allocation ay $1.18.Or you can sell your allocation at current price,this price will reduce the closer we get to March date.Often as we get closer to closing date (March) the share price will go down so some people sell the options early & by in when/if the share gets sold down below exercise option price of $1.18 if that happens.