LIC & LIT Listed Investment Companies (LICs) Q4 2018

Haven’t been following them much lately but appear to be a mini Platinum given the founders are mostly ex Platinum staff. Likely similar to PMC (including high fees) but more likely to be able to get it at a discount to NTA particularly now.

I have less interest in the higher fee LICs nowadays. Other reasons include key person risk and staff turnover. Adding these sorts of issues together it makes it hard for these funds to better a simple, low fee index fund. The higher income component possible from these “trading” LICs might appeal to some.

I only glanced at the commentary on Antipodies but it appears they might be better value at the moment due to the usual options expiry scenario.

 

Very interesting trend!

 

I reckon this would align closely with insto ownership...

 

Very much so @unwillingwillis. Wonder what are the numbers behind it. Algorithmic trading, access to trading platforms to the punters? If it keeps going to trend for the 2020 it'll drift into the negative!

 

Hehe, I've been told that a number of times by an acquaintance who was doing research into AI.

Dang it.

 

Just letting everyone know that there’s now a dedicated thread for the Whitefield Share Purchase Plan: Whitefield Limited (WHF) SPP

Posting the link here for people like me who usually ignore all threads bar this one.

 

It's intended to keep you on your toes which is all to the good.

That and a rational re-ordering of posts.

 

People were waiting on the sidelines for the market to drop...and it isn't at present. Goes to show that being patient (within reason) and DCA-ing works. Waiting for the 'bottom' doesn't.

Same could be said about the property market at present.

 

So - are we still thinking MLT might offer this year or early next?
I like MLT more then WHF.

 

No one knows! Probably best to allocate some funds for the possibility of such an event for the upcoming year!

 

Franking credit policy tipped to spur move to LITs

 

Wilson: 25,000 reasons to stop changes to dividend imputation

 

I notice PMC are considered canceling their DRP in the future.

Why?

 

From the Chairman's address

The Board wishes to flag that the Dividend Reinvestment Plan (“DRP”) is currently under review for three
main reasons. Firstly, for some time it has achieved only a modest level of support from shareholders.
Secondly, it is relatively complex to administer for both participating shareholders and the Company and
thirdly, it can impede the Company’s flexibility to implement other capital initiatives. Accordingly, the
Company is considering either amending the structure and pricing of the DRP or suspending it altogether.
We will keep shareholders informed.

 

Just a shout out to say thanks for all the knowledge shared thoughpout the lic and Thornhill threads! Nodrog, the beginners guide is a great resource, thanks for your time on it.

Have been following these threads for nearly a couple of years, finally kicked off my Lic portfolio this week!

 

Both @Parkzilla and @Nodrog mentioned in the WHF SPP thread* the possibility of reducing the number of LIC's each hold. I must admit I am also contemplating the same and I feel it will be a question of when not if.

BKI has already gone. It's done it's job and in many respects I can obtain a similar exposure through both SOL and MLT both of which I presently hold plus via other LIC's and STW. I didn't think BKI did or does anything special which makes it stand out from the crowd for me to justify holding it any longer.

I'm not fussed about paying CGT, especially within the SMSF. My personal attitude only as others quite rightly have their approach but, hey, make say a $50k profit and worry more about paying the $5K than the $45k which is remaining. Nah. Not if it achieves one's overall aim of simplicity.

* Forgot to give a reason for the *. Blame it on my fading memory. With multiple threads on vaguely the same subject and posts in those specific threads of a general nature relating to LICs ....um, what was I going to say again?

 

Thanks @turk. A pity in one way as I started my kids off with DRPs. Over time built up to a reasonably decent holding for them in PMC and other LICs.

I expect and pay the management to look at all these variables and if it's no longer considered worthwhile overall, then so be it.

I do recall years ago AFI was also contemplating scrapping its DRP. Could still happen of course.

 

To be honest WHF was next on our list of things to go in pursuit of simplicity given the higher fee (and sometimes poor liquidity) in particular but escaped the hatchet by the skin of its teeth. CGT is an issue for us as we are in the process of winding down the Family Trust choosing to have investments outside the SMSF in own joint names. So overall there’s a very sizable amount of CGT to manage not to mention the recent sale of our last investment property.

In the SMSF my wife is still in Accumulation mode and I also have quite a bit in accumulation due to pension cap. This only compounds the overall issue with CGT. But despite not being ideal from a simplicity view it’s pretty darn close.

But never say never in the future. The portfolio if it does change will be to lesser holdings, certainly not more.

I’m still giving BKI the benefit of the doubt over the longer term since creation of Contact in part along the line of thinking in this extract from IIR Research Report particularly the first two points: