Ann: Net Tangible Asset Backing, page-4

Let me try to put another long term perspective on this company.

Since their first NTA report in Feb 2004 they have averaged a 10.5% discount to NTA (7.57% after tax). This month they are still 10.2% premium. There's a long way to go down to get to the average. As a comparison, WAM since August 1999 has averaged a 5.8% discount to NTA (1.77% after tax) and is now sitting at a 13% premium.

Using my way of measuring performance (money in my pocket) ALF has outperformed WAM on average by a long way.

So what I am saying I guess is that if you think ALF is still the same company and will continue past performance into the future, they are cheap compared to WAM. The thing to worry about is whether the recent short period of bad performance is just bad luck or ALF or the world has changed.

I'm thinking bad luck but I am prepared to change my mind if it continues too long.

You will see I do not own ALF. I jumped out when they got to a 25% premium into NTA (after tax) in July last year. I held them from their float in 2004 and added until then. I am nervous of the number of new shares issued in the LIC space and expect to jump back in we get back to the normal situation of running discounts to NTA. In the mean time VAS and STW is the main interest for me.