why such a discount?, page-13

LICs with low mgt fees like Milton are at a very large discount for these reasons;

1. Milton has an overweighting to banks. Resources have performed considerably better than banks.

2. LICs like Milton like to have DRPs and SPPs. In the short term, that is OK, but in the long term because of the discount to NTA, the value of your holding gets very slowly grinded away by the issue of new shares at the prevailing price. A cheap LIC without DRPs and SPPs is ideal.

3. In rising markets like this people get naturally overconfident and prefer to pick their own stocks because they think they are "beating the professionals".

By the way, ALF is not suited to the MLT investor - much higher fees and a trading LIC strategy. The MLT investor likes the warm fuzzy secure feeling!!!