VAS down LICs up - arbitrage?

Discussion in 'Sharemarket News & Market Analysis' started by Zenith Chaos, 1st Feb, 2019.

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  1. Zenith Chaos

    Zenith Chaos Well-Known Member

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    As of right now today VAS down and all big old LICs up (AFI, ARG, AUI, MLT, WHF).

    For discussion.
     
    Zenith Chaos, 1st Feb, 2019
    #1
  2. SatayKing

    SatayKing Well-Known Member

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    Anything to do with due dates for reporting and/or going ex-dividend especially if there are any specials involved?
     
    SatayKing, 1st Feb, 2019
    #2
  3. Snowball

    Snowball Well-Known Member

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    Happens quite often.

    Could perhaps make a couple bucks playing this game but maybe not worth the effort.

    The premium/discount may revert back to an old level or it could go somewhere new.

    If you’re thinking of unloading something to simplify your portfolio (as I have before) then it couldn’t hurt doing it while the LIC is trading at a premium
     
    Snowball, 1st Feb, 2019
    #3
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  4. Blueskies

    Blueskies Well-Known Member

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    It's a bit of a mixed bag really, for 6 months VAS is lagging AFI by a good 6-7%:

    Screenshot_2019-02-01-19-16-45-50.png

    But basically line ball with say Milton:

    Screenshot_2019-02-01-19-17-43-65.png

    It is either due to differences in performance of the individual holdings between the funds and/or changes to NTA backing.

    If you figure out how to make money from this information please let me know how....
     
    Blueskies, 1st Feb, 2019
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  5. The Falcon

    The Falcon Well-Known Member

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    Get back to work son!
     
    The Falcon, 1st Feb, 2019
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  6. Nodrog

    Nodrog Well-Known Member

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    On odd occasion I’ve taken advantage of such things for tax loss harvesting but as a trading strategy for short term profit it’s not worth the risk, time and effort.

    It’s hard enough getting to FIRE with sensible investing. So not worth higher risk, costly strategies when one is so close or risking wealth destruction after having reached that most important goal!

    Once one embarks on trying to get fancy it can become an addiction often with the inevitable consequences. Well it was for me when I took that path many years ago.

    If I need an adrenaline rush nowadays I do it by wresting with our resident 2.5 metre python. Much less risky than messing with our accumulated wealth.
     
    Nodrog, 1st Feb, 2019
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  7. Nodrog

    Nodrog Well-Known Member

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    And likely be there a lot longer than desired if he gets hooked on such things:).
     
    Nodrog, 1st Feb, 2019
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  8. lamecrocs

    lamecrocs Well-Known Member

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    Can you one for FGX or FGG? Keen to understand if these fund of funds which are supposed to be the best of breed fund managers could under/over perform the ETF.
     
    lamecrocs, 1st Feb, 2019
    #8
  9. SatayKing

    SatayKing Well-Known Member

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    All grist for the mill. Fortunately for me I've never noticed the difference as it's unlikely I would use it successfully.

    SK asks of himself "What don't I know?" and the answer is "An outstanding amount so don't go there as you'll probably outsmart yourself."
     
    SatayKing, 2nd Feb, 2019
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