Perth Investor Presentation, page-4

Hi JSharma and pargolf,

Overall, Justin came across well to the small audience in Perth and I left with the impression that he remained convinced that his strategy was sound. That said, I have neither bought or sold any but a neighbour that attended with me has since bought some more.

I am relatively new to LIC's, having inherited them from a so-called financial planner that set up an SMSF in late 2013 and shortly after suggested that we find another FP (won't digress on why here). Having initially been attracted to the diversity and apparent simplicity of the concept (originally held ALF, ARG, CTN, WAM and bought FGX at the IPO) I am much cooler on it now largely due to turning 65 this year and being quite unwilling to accept much risk. I presentably still hold all of these but did sell ¾ of our WAM holding in April due to NTA premium (and no CGT issue) and an increasing lack of transparency.
In answer to your specific questions:

• yes it was generally frosty, I cornered him quietly after the presentation suggesting this which as I excepted, he didn’t appreciate.

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• I also struggle with the all LICs present their performance as it invariably seems inflated to me. • again, I’m no expert but suspect the capital return offers a tax break somewhere, hadn’t heard another was planned and don’t remember that being mentioned at the presentation.

• GW may intervene if ALF loses much more value but I am sure I read or heard somewhere that it is unlikely.

• pargolf, if dividends are not important to you, I suggest you look at you look at solid low risk, high growth stocks.

I should also declare that I am generally quite cynical about the ASX (Dick Smith, MYR, MTS and most recently RFG plus the fact that oversight is non-existent from the perspective of a retail shareholder) but continue to carefully explore opportunities (spent a Saturday morning at the CBD stores of TRS and AX1 last June, came away happy but then got too busy to buy before both jumped and these have since risen 85 and 55% respectively).

The other issue I have is that given my age, real estate, which has been very good for us but is something I won’t invest in again as the risk outweighs the benefit.

Hope this helps and as always, DYOR.

Cheers, Nick