WGF restructuring to an unlisted unit trust, page-7

Size does not explain the discounts to NTA. BEFORE the announcements both WGF and WMK were trading at discounts of around 10%, while the larger ALF is currently at a discount of 16% using the end November NTA. So the larger ALF by size has a larger discount, not a smaller discount.

After the announcements WGF and WMK rose 3cps and moved to discounts of "only" 7-8%. As the implementation date is 8 April when you could cash in at NTA the risk is whether the manager loses money in the interim. It is not a sure fire bet if you buy at the current share price you will get more than your money back. WGF lost 3.5% in the 3 months to November and WMK lost 4.6%. So allowing for transaction costs if you bought some now the potential gain is small if they keep losing money at that rate.

The question is why ALF does not do the same to allow holders to exit at the NTA? Its larger size is not a reason from shareholders viewpoint. From the manager's viewpoint the risk would be funds under management would disappear altogether if all entities became managed funds and holders could exit at NTA. Thank god I sold them all some time ago.

ALF shareholders need to agitate to get the same option.