ASX LIC Performance Comparison – Not A Happy FY19

When these catalysts start to line up and if the discounts get to nearer 25% there could be some excellent buying. The one big dilemma though is if you find the discount attractive and you buy over the next few months, only to find out we run into a bear market. Suddenly this doesn’t help so much when the NTA is falling rapidly!

What Have I Been Buying / Selling in LICs Lately?

Not a great deal.

Argo Global Listed Infrastructure Ltd (ASX:ALI).

I actually sold more than half my ALI in the last week or so as it has bucked the trend over the last year. It is very easy for Argo to manage (outsource the management to Cohen & Steers and clip the ticket). That makes me wonder whether if the shares got to trade above the after tax NTA, maybe they won’t resist the temptation to issue more shares.

Shareholders recently in WCM Global Growth Ltd (ASX:WQG) would understand well how management of LICs can get tempted to issue new shares!

I still own a fair few ALI though and not rushing for the exit door. I do acknowledge though it has had a tailwind of falling bond yields and AUD. Factors I am less convinced about continuing from here now that all the guru forecasters have jumped on these bandwagons.

On the buy side in June I purchased some 8IP Emerging Companies Ltd (ASX:8EC) and also Blue Sky Alternative Access Fund Ltd (ASX:BAF).

The former is not very interesting just hopefully a parking spot for me that beats cash returns as it goes through a wind up.

I might write some more on BAF later but I thought it offered a lot of value under 72 cents. Whether it gets rebranded under a different manager or even if it is wound up I think the returns should be good from that level.

I calculated the 18/19 returns in this blog post with the help of Sharesight. Readers of this site can obtain two free months when they pay for a yearly subscription for the first time if they use the following link.

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