Barney lots of people follow this one don't worry about that.Not...

Barney lots of people follow this one don't worry about that.

Not arms length? That's go to jail stuff. I'm sure they did it right. All the benefit here to me seems to be for CTN.

Also, the 1st thing they did is make the independent guy Chairman. That's good governance to me

Compare to my managed funds which I have NO idea who is managing that or if they are acting in my interest or the fund managers. I am happy here thank you.

Good deal? Looked like it to me. They bought it at a discount to NTA. Nice profit there. If they sell of the holdings in CCQ they are left with a LIC shell and basically they've bought half a fund manager for dirty cheap. (my maths says $4m...ish)

Last year they paid the managers $6 odd mill in fees...as I calculated( again DYO numbers here). Now I understand that they can consolidate/ claim back 75% of 50% of all fees paid because they own 75% of CCQ which owns 50% of the managers/fund manager who manage the portfolio. That's a MASSIVE benefit each and every year. This whole transaction effectively costing $4m to own half of the fund manager they paid $6m to last year ALONE. (as I add up,again all DYOR here I could be very wrong)

I'm keen to see if they can do something with CCQ (did I hear it has tax losses in the tens of millions+ franking credits?) and also make money out of the funds management business. If they did a raising to get another hundred mill in to that one (however that might be possible), that's money /fees that we will clip via the 50% ownership of the fund manager,etc

What I see now is our LIC + portfolio managers + a funds management business with Indie Chairman over the top.

Franking yes I am with you. But they said they were in a loss position so by govt law couldn't frank it. Other LICs did though,so I don't know.But what, to pay franking they have to pay tax.Pay tax means the NTA is lower means the share price is lower.
AND they did 18% for the last 3 months (this is the stocks inside). If they paid tax they'd not have increased the NTA by 18%. What would we prefer?
So for people think franking comes for free- think again.
But yeah,I have to sell something to pay my tax too.

Also DRP was 10c or so below the then share price. We should be sending them thank you's. Did you get in on DRP at under $1?

Depending on where we are in the cycle will determine which stocks I sell to pay my tax. If I am bullish it won't be this one.

CTN is a decision on my view on global growth.

I keep my speccies for what they are,and this is my allocation to that overall part of the market,plus a hope they can narrow their discount.

DYOR of course