I'd like to start a LIC discussion thread.
what are the best LICs worth investing in at the moment and why ?
personally I am currently in
*WLE Wam Leaders ASX 200 stocks, relatively index unaware portfolio, trading at NTA , unlike the huge premiums in WAM & WAX which have been sensational performers : hoping for similar from this one in future. can short sell but doesn't much. can also hold plenty cash if wants to. active turnover.
very different to a traditional leaders fund like AFIC / Argo
fees not unreasonable at 1% pa + perf fee ( 22% of outperf )
* FOR Forager Australian : small & microcaps mainly but allowed to buy all caps, deep value style,
totally index unaware. unlisted version has done superbly , > 20% p.a. over 5 years,
Steve Johnson seems to really know his stuff and has plenty of years ahead of him being relatively young. but now at 10% premium to NTA, waiting for a pullback so I can top up.
* WHF Whitefield : Aussie Industrials only, no miners or oil, low fees 0.35% p.a,
total shareholder return 15% p.a over past 5 yrs, similar to industrials index
trading at 10% discount to NTA, seems good value ?
( actually the oldest LIC, founded 1923, not that that is any reason to invest in it )
* WGF Watermark global leaders : long/short market neutral global fund, should do well in downturns.
trading at 9% discount to NTA : seems good value ?
not sure why market doesn't yet like it. their Aussie fund WMK Watermark market neutral has done OK.
* MGE Magellan global fund, not a LIC as such, but exchange traded managed fund.
nice to not have premiums and discounts to NTA to worry about
* BTI Bailador technology : very disappointing performer and am hoping to get out if bounces.
* BHD Benjamin Hornigold in the recent IPO. HML has done superbly, hoping BHD will also.
prefer BHD global trading strategy without the unlisted obscure assets in HML.
will also be applying for upcoming
* WAM Microcaps LIC ( companies under $250M, reportedly to IPO in May or June, but from what I hear , only to current investors in any of the WAM funds ).
also interested in :
* FPC Fat prophets global contrarian : but trading at over 10% premium to NTA despite listing only in March, hoping for this to pull back. looks interesting but high risk.
* Perpetual equity : 50 - 75% in Aussie stocks but very index unaware, also up to 25% international stocks,
and up to 25% cash, quite different to traditional older LICs.
currently at 9% discount to NTA, looks good value
* DUI : exceptionally low fees 0.13% p.a, has 10% international ETFs, good track record, maybe too passive
but interestingly has CSL at n0. 2 and Transurban at no. 5, unlike other large old LICs which have
only banks, BHP and Telstra in their top 5, yuck !
always seems to trade at 5 - 7 % discount to NTA, good value ?
* WAM and WAX : great performers, would love to buy in near NTA but refuse to pay a 20% premium to NTA no matter how good a fund manager is.
been watching but not buying :
* Mirrabooka : mid & small caps, low MER 0.70%, good long term performance but trades at ridiculously large premium to NTA
* WAA WAM active : not performed as well as the other WAM funds. prefer WAX for small caps.
* Future Generation funds : not sure I want "fund of many funds", returns likely to approximate the index.
* Monash absolute: dismal performance since listing 12 months ago.
* Flagship investments : underlying fund performed well, Manny Pohl a good stockpicker, but too small
and very illiquid. keeps trading at large discount to NTA, doubt it will ever close unless the fund grows much bigger.
* QV equities : a good choice but I already own their unlisted IML Future leaders fund which has done very well.
* AEG Absolute equity performance : past 12 months performance poor - 11 %, and the retirement of founder
Richard Fish is a worry.
* CDM Cadence capital : used to be a very good performer, but has dramatically underperformed in the past 3 yrs.
* BKI : been holding 10% in Telstra and TPG, a big mistake IMO, lots of banks also, but has never held CSL !
* Blue Sky alternatives : not sure what to make of this one's property and water assets.
* GFL Global Masters ( has mainly Berkshire Hathaway ) : wow, 27 % p.a over 5 yrs, but will Warren Buffett ( 86 ) and Charlie Munger ( 93 ) live forever ??
NOT interested in
*AFIC, Argo, Milton. too large and passive, portfolios too similar to the ASX50, and
performance over the past 10 years no better than and sometimes worse than the index. ie 4 - 5% p.a over the past 10 years ( including divvies ) , big deal...
* MFF Magellan flagship : prefer Magellans exchange traded fund MGE
* Naos : too small and illiquid. high fees.
* Contango : don't like this fund manager. performance not great either.
* Acorn Capital : don't like this fund manager. their unlisted funds have performed dismally over long periods.
* CIN Carlton : has performed very well, but has 40% in Event Hospitality, ridiculous !
would appreciate others opinions / perspectives
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