LIC & LIT Listed Investment Companies (LICs) Q1 2018

{Note - thread continued from here: Listed Investment Companies (LICs) in 2017}

 

Could someone familiar with HML please give a summary of the situation there?

 

"Related party transactions and questions over valuations on unlisted assets"

Too complex for me to understand. I did enjoy the '10 foot investors ' blog which tried to lay it all out but i think they are deleted after they threatened him with legal action.

Keen as to see the nta if they ever resume trading.

 

You could probably message him/her directly on twitter if you have any more detailed questions.

I read the initial series of posts - took me about 3 read-throughs to understand about 25% of what was happening, and that wasn't 10footInvestors fault at all. It was so convoluted it made my head spin.

 

I would like to confirm something simple:-

DRP (LIC's or any in general):- To keep growing one's holding and increase the post retirement income this is one important component. What I am having trouble in understanding is the tax system:-

(Rule of thumb is) keep buying never sell so DRP can be yes but incase one needs to sell then the calculation of CG over 20 years for various DRPs for tax purposes will be a nightmare hence if one just say 'NO' to DRP
(BPP in some cases) and receive cash but when buying $5K parcels also add the divi amount and buy more shares then the final result (total holding) will be the same and tax calculations be as per normal if selling??

(NOTE: I understand that share price may vary due to market ups and downs)

Interested to know what various strategies are being used.

 

@SatayKing and @Nodrog in regards to the naming convention did you also include the transaction confirmation number in the title - I know it makes the file name longer but it should make searching easier and relate it back to the source transaction?

 

I don’t use DRP in part for that reason. I prefer to take the dividend as cash then reinvest it myself. Thornhill does the same.

 

@Ynot , to be honest I'm not sure what you mean. In my case, I save the original which contains all the necessary details. I believe you can also use OCR which enables the PDF to be searched for text but I don't bother with that.

 

Given I have a spreadsheet that keeps track of share transactions including their cost base for future potential CGT that’s the first place of reference. If I then need to locate the Confirmation note I just look for the matching share name and date. For example:

SHARES - XYZ SUPER FUND (Folder)
_XYZ Super Fund - Share Transaction History (Excel Spreadsheet)
...... ARG (Folder)
........... ARG 2017-10-21 Buy / SPP / etc (PDF File)

I’m sure others have done better buts that’s all I do.

 

Another great article by @Ianvestor found here on his blog:

AVOID THIS LIC FLOAT IN 2018!

 

Sorry @SatayKing . I was meaning if the Commsec Trade Confirmation No was also included in the pdf title. On occasions I have had more than one trade for a share in a day - in which case this would distinguish the file name between the two trades. So file name would be AFI 2018-01-02 - Buy - 815125xx

 

I’ve occasionally had a couple of trades on the one day for a share. In which case I just use say ARG 2017-10-21 Buy 1 / 2 / ... . For a longer term investor it still keeps them easy to find.

 

Not wishing to be a pedant but shouldn't we start a new thread i.e. "Listed Investment Companies (LICs) in 2018"

 

@Ynot no problem at all. I'm not really with it at the moment as I'm going through some self-inflicted pain issues to get some callouses on my fingertips - again.

I see @Nodrog has given a solution to your question.

Only if it's forced upon us. Until then....

 

Brilliant.

 

The mind boggles.

Still scanning at this end. Now my wife’s decided everything else in the house, garages, home offices, book collections, magazines, cookbooks, outdoor rubbish etc needs sorting through and thinning out including gum treeing.

I can feel another one of these attacks coming on:

 

Shush, Simon might hear you.

 

@Ianvestor can you do a similar article on index funds also to keep @Il Falco under control.

 

Tough one on cap weight low fee index trackers....our expectations are very low to start with.

 

Damn, you’ve got an answer for everything haven’t you.