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Listed Investment Trusts

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The catalyst for a LICs rebound

The discounts on listed investment vehicles are at historically wide levels. There are lots of reasons given, including size and liquidity, yet there's a better explanation for the discounts, and why a rebound may be near.

Why LICs may be close to bottoming

Investor disgust, consolidation, de-listings, price discounts, activist investors entering - it’s what typically happens at business cycle troughs, and it’s happening to LICs now. That may present a potential opportunity.

The fascinating battle between Nick Bolton and Magellan

Nick Bolton wants to force Magellan to pay out the 7.5% discount on the Global Fund (ASX:MGF) options. Magellan will resist as it must act in the interests of all unitholders and the cost comes from Magellan itself.

Why LICs are closing and more should follow

The heyday of LICs is in the past, when issuers paid generous fees to brokers and advisers to put their clients into new structures. Most LICs now trade at a discount and more managers should change the structure.

LIC and LIT performance and dividends in FY23

There were mixed performances by LICs and LITs last year although they generally delivered an increase in dividends. Total returns including price are driven by the extent to which they trade at a discount to NTA.

LIC discounts widening with the market sell-off

Discounts on LICs and LITs vary with market conditions, and many prominent managers have seen the value of their assets fall as well as discount widen. There may be opportunities for gains if discounts narrow.

Conflicted selling fees are back, and it’s game on

If you thought fund managers were banned from paying commissions to financial advisers and brokers to prevent conflicts of interest, you have not kept up with the move to classify clients as wholesale investors. 

Four ways to invest in the same fund and save money

Why invest in an unlisted fund when the listed version of the same fund is priced at a discount? Why hold a listed version at a premium when the unlisted version is cheaper? Find the best way to invest.

How can the worst feature of LICs also be the best?

Apparently, Listed Investment Companies trading at a discount to NTA are both the best and worst of worlds. They are either exciting opportunities or not in the best interests of investors. Which is right?

LICs need a genuine raison d’etre

The Listed Investment Company structure is under siege, but for the right type of asset and manager, it still carries strong appeal. Every LIC should review whether it has a genuine reason to exist in this form.

Peak to peak, which LIC managers performed during COVID?

A comprehensive review of dozens of LICs shows how they performed in the crucial 'peak to peak' of COVID. This 14 months tested the mettle and strategies of a sector often under fire, with many strong results.

ETFs are the Marvel of listed galaxies, even with star WAR

Until 2018, LICs and LITs dominated ETFs, much like the Star Wars franchise was the most lucrative in the world until Marvel came along. Now ETFs are double their rivals, just as Marvel conquered Star Wars.

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How much do you need to retire comfortably?

Two commonly asked questions are: 'How much do I need to retire' and 'How much can I afford to spend in retirement'? This is a guide to help you come up with your own numbers to suit your goals and needs.

Meg on SMSFs: Clearing up confusion on the $3 million super tax

There seems to be more confusion than clarity about the mechanics of how the new $3 million super tax is supposed to work. Here is an attempt to answer some of the questions from my previous work on the issue. 

The secrets of Australia’s Berkshire Hathaway

Washington H. Soul Pattinson is an ASX top 50 stock with one of the best investment track records this country has seen. Yet, most Australians haven’t heard of it, and the company seems to prefer it that way.

How long will you live?

We are often quoted life expectancy at birth but what matters most is how long we should live as we grow older. It is surprising how short this can be for people born last century, so make the most of it.

Australian housing is twice as expensive as the US

A new report suggests Australian housing is twice as expensive as that of the US and UK on a price-to-income basis. It also reveals that it’s cheaper to live in New York than most of our capital cities.

Welcome to Firstlinks Edition 566 with weekend update

Here are 10 rules for staying happy and sharp as we age, including socialise a lot, never retire, learn a demanding skill, practice gratitude, play video games (specific ones), and be sure to reminisce.

  • 27 June 2024

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