Ann: Monthly Investment Report April 2020, page-33

The stock market is a free market. What does this have to do with protecting investors from unscrupulous managers, concerned more with a closed capital pool than investors ability to sell at fair value.

Do you think this means any company can simply go public? That you can't impose rules on the basis by which they are allowed to float to protect investors.

Do you realise the very rules that are in place to protect investors, including conflicted commission fees, aren't in place for closed funds. That in Australia we rely upon goodwill, like Magellan foregoing commission payments, than regulation which outright bans the practice.

I think you are failing to realise the nature of the investment vehicle.

Most other markets have enforced buybacks when closed funds trade at predetermined discounts. Again, we rely upon the goodwill of a manager to initiate such buybacks.

The fact you have bought funds at a discount, and then managed to sell when the discount has either shortened or the stock has increased through its performance has zero to do with the failings of the structure.

The fact remains these vehicles are flogged to retail investors with full knowledge there is a near certainty they will drop below par almost immediately.

History has shown those that float with a base of below 500 million DO NOT have the necessary support in the secondary market. It is the basis for a number of funds pulling the float at the last minute.

We will have to agree to disagree.

I am sure you will have your supporters.. like retirees that still don't realise a franked divided is no different to a unit trust distribution. So they flock to the structure..