The LIC/LIT space is dying a painful death - especially for liquid investments that aren't wholly reliant on a fixed capital pool and can therefore easily operate as open funds.
It's interesting to see the comments on the various Wilson forums over the years. There is a distinct change in sentiment.
My thoughts have always been the same. When you are still showing fund performance before fees - it's for a reason.
When you look at the various well performing Wilson funds on an after fees/net basis - you are largely in line with a vanilla index fund which charges a fraction of a percent.
It's a lot harder to go after other closed funds and their persistent discounts - when you have WGB and WAR continually struggling with discounts. Until this is addressed, it's pretty hard to attack the bloke next door.
The funds have always appealed to older generations, seeking yield above everything else. The problem they now face is unrealistic expectations to keep the dividends flowing - even when it is to the detriment of the fund.
The problem for WAM and other closed funds is the next generation of investors are ETF investors and fee conscious. They know that over 80% of active managers can't beat a simple index over the long term - after fees.
WAM Price at posting:
$1.47 Sentiment: None Disclosure: Not Held
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