LIC & LIT Listed Investment Companies (LICs) Q1 2018

Good thing about the older LICs key person risk is minimal.

 

In other words Ross who? He he

 

LIC Outlook for 2018 – Nathan Umapathy

 

Um (apathy)?

Sorry but someone had to do it. Well, no actually.

 

Ah that's better. Looks like they've cut back on those fancy graphics from before. Leave that nonsense for the young flashy LICs

 

....and there goes AMH...... up 4c

 

Do LIC's provide annual taxation statements like ETF's? or are all taxation components accurately advised at time of dividend. Have bought a couple of LIC's ex div and haven't received the next dividend yet or held over end of FY.

Thanks

 

Arrrgggggh. Some dastard went gone and done it 2018!!!!

AFI, MIR, DJW used to provide them but apparently not now. ARG and the rest never did to my knowledge.

Each dividend statement will contain the information you need (payment, franking) including any LIC discount.

Never fear, it's also likely the ATO already has a lot of the info already.

Hope this helps.

 

PMC seems to have established a fair premium to NAV. Do you LIC guru's take profit in such scenarios or let them run?

 

Reflecting on it, I guess I'm in the latter camp. Since making a purchase shortly before Christmas, I haven't looked at share prices, NTA's or the market. I've never been able to get timing right in any case. Anyway it requires two decisions, when to get out and when to get back in. Too hard for me.

 

He he, I'm worse than I thought when I think about it. Desultory would be the best description. Don't even bother to download the quarterly distribution statements from STW now as they are pointless, the money hits the bank when it does and the annual statement is the only one of any purpose. One lazy, indifferent prawn.

 

And when you get back in you will have a lower investable capital base due to tax.

 

Good point there.

Raises the question in my mind whether we focus too much on tax sometimes. Be an absolute bummer if the ratbags took 100% but they're trying. Wonder if imputation of rent is still being considered.

 

No need for an EOY Statement. There’s generally on two statements per year and rediculously simple. Normally two figures being the cash dividend and related franking credit (accurate and final). Occasionally their might be a third figure being LIC Capital Gain in the case of the low turnover older LICs. Just total these figures from the two statements and that’s it. Simple as. It’s no different to a dividend statement from CBA except for the occasional third LIC CG figure as mentioned earlier.

What I like about LICs is come 30 June the info is there nothing else needed. Unlike ETF Annual Statement which can take a month or more to be sent to you then you need an accounting degree to figure out what the hell all the figures are.

 

The provider has the ability to advise daily of NTA and alterations to the basket of shares and would know of dividend/interest income, etc but seems incapable of getting the required details out within a week of the EoFY. A conundrum which I wont bother to explore.

 

Yes I was wondering why they don't announce the progressive dividend along with each NTA update

 

I did see one which gave component breakdown for each distribution but I cannot recall which. I think was done as percentages and not actual dollar and cents amounts. My whinge was regarding STW which is basic in the extreme. It doesn't matter to me much as I'm not in to that level of tax planning or exotics.

 

Hey @dunno it just hit me. Curious about your LIC purchases as I thought you were more index oriented when it comes to diversified funds? Mid / Small sector perhaps? Looking to benefit from NTA cycle? I’m intrigued.

 

Simon’s been messing with our LIC thread again. Back to three pages.

 

Title. He's separated our discussions last year to this yr, effectively archiving last year's discussion. I missed the first few posts of this discussion at the timr as i didn't realise the discussion had been separated.