Hi everyone,There is much discussion with these vehicles whether...

Hi everyone,

There is much discussion with these vehicles whether they are any good for shareholders or not.

I like the management and i like the areas they invest in but it continually frustrates me that the share price lags the assets they manage.

I tend to think it is because these new lic's don't really fit in the advising industry anywhere.

ie if you are a stock broker and a client comes to you and you put your clients money in CTN and say hold it forever the broker may feel they are missing out on brokerage.

If you are a fin planner and put your clients in it there is no trail so they are missing out.
If a fin planner puts them in a wrap fund ( where they charge a manageent fee) they may find this hard to justify long term?

Dividends in this vehicle will always be lumpy given there investment strategy.

I think what the company has to do is buy back their own shares when the stock trades at a specific discount to asset backing. ie when the stock is trading above a 25% discount if they are buying there own shares back the shareholder is receiving a 25% risk free return on the shares bought back. As an investor and shareholder anyone who gives me a 25% risk free return i would be satisfied.