LIC & LIT Listed Investment Companies (LICs) Q3 2018

For us this is what investing is all about. Who gives a stuff about capital when the income is doing this! No decisions needed about what to sell to rebalance etc etc. Just forget about it, let others manage the portfolio for bugger all fee, watch the income grow, nothing to do but enjoy life.

As @SatayKing would say, “bliss on a stick”. Uummm I think that’s it.

 

I made my first LIC/ETF investment today, buying Milton. I'm planning to also buy Argo, VGS and possibly VAS in the next couple of months.

Thanks to everyone for all the great information posted on this forum.

 

Yup. While I recognise the advantages of superannuation, I really like holding shares outside that structure as well since capital gains becomes even less relevant to me.

No laws requiring me to price the bloody things. One less worry. Simply collect the dividends!

 

SK it’s funny you say that. Lately I look at the SMSF as if it’s of lesser importance to personal assets and almost like it’s a temporary thing. I think it’s because I know I will be forced to sell assets more and more as we age. And as you say that means having to be aware of bloody capital value which I don’t like at all.

The only way I can be at peace with it Capital value wise is knowing that whatever assets I have to sell in the SMSF I will simply rebuy in own names. Transactions costs are incurred of course and CGT on the accumulation component.

It just goes against my nature of accumulating income producing assets with no intention of selling.

 

Vanguard has released its 17th annual index chart recently. Link here



Those figures don't look very nice for international shares. $10,000 grows to $85,000 in 30 odd years. While for US it has grown to $206,000 which is more than twice.

No one knows the future but if International shares are going to catchup to US then they would need to outperform US market by several percentage points over the coming decades.

Cheers,
Oracle.

 

Really interesting.
I would be interested to know whether this trend stays the same over an even longer time frame - say 50 years. Couldn't really find much info. on this around. Does anyone have a chart or some sort for aus vs US vs Int over 50 years+ or longer?

 

Nothing to to with LICs but as a result of being some what at a loss to do this morning before heading off for some afternoon activities, I looked at the ASX announcements and had the pleasant surprise that a couple of my personal direct share holdings are going to pay me some money.

Nice, especially as one has substantially increased the dividend compared with previous corresponding period by over 30%.

 

Does the name start with a C and end with a L?

Cheers,
Oracle.

 

I assume you know it's illegal to hack into someones share registry account?

 

I thought I was looking at my share registry account

Cheers,
Oracle

 

Collerina cobalt (CLL) must be booming then?!!

 

https://dpsi7pmz5b6vt.cloudfront.ne...cture/5656/Monthly_LIC_Report_13_Aug_2018.pdf

 

This report popped up on the ETF Watch site

ETF & LIC 2018 Report

 

Another pleasant result with QVE increasing the dividend by 5% to 4.2 cents for the year.

And as a bonus, a special dividend of 1 cent to be paid along with the final dividend of 2.1 cps. (Presumably because of the Tox Free takeover by Cleanaway, for which I received a juicy special div in my personal account too )

https://www.asx.com.au/asxpdf/20180815/pdf/43xc736td36727.pdf

 

Found more data on US vs Int.

To me it really seems like a draw and the USA is getting all the hype now due to the recent strong bull, whereas international did quite well in other periods.

 

Results for GC1:

Of course it speaks more abut last year than this year.

 

Interesting comment from Geoff Wilson in an AMP article (What two investing insights would you give your 20-year-old self?):

"Put as much money as you can into the share market
For simple and effective exposure to a diversified investment portfolio, I would buy the four largest listed investment companies (LICs) – AFIC (ASX:AFI), Argo Investments (ASX:ARG), Milton Corporation (ASX:MLT) and WAM Capital (ASX:WAM). I would also participate in their dividend reinvestment plans (DRP) as the benefits of compounding are significant."

What two investing insights would you give your 20-year-old self? | AMP Capital

 

That was posted a while back with some other veterans advice.

Wonder if he’d now have a slightly different answer...WAM Global for extra diversification

 

PIC 1 for 4 Entitlement Offer @ $1.12 per share will probably be taken up. Not going to go for the shortfall or general offer.

 

Thanks for the heads up @SatayKing. On your "not advice" I researched PIC and purchased a nice parcel which has performed well.

With regards to the offer: general offer shares at 1.12 to new shareholders and entitlement offer shares at 1 for 4 for existing shareholders at the same price. So what is the advantage to the existing shareholder? Is this not diluting existing shareholder value?

Interested in your thoughts.