Certainly my personal experience of using LICs has been very disappointing, so I agree that it is rational that there should be a discount on LICs to allow for the large fees. Have not owned one yet that has accessed the 10% of out-performance fees.
What sticks in my craw is when companies drift along at 15-20% discount. It is so blindlingly obvious that they should shut up shop and return investors money - or better still go on a massive buy back and then sell up and return capital. Instead they sit on their captive money and bleed it out (sorry public holiday and Ive just woken up from my nana-nap and grumpy as hell). I wonder what directors charged with legally looking our for shareholders do at their board meetings. Should we vote for shareholders, or vote to keeps our fees and mumble about serving a need in the sharemarket?
That said at least you can often walk away with 85% of your cash on markets - that's a bloody win for LICs.as HML holders know.
Still hold ARG as it easier to pass the franked divies through the trust to the kids (yep, I'm that lazy!). Also still hold PMC - bought before the wide range of intl ETFs was around. Wish I didn't still hold. After not looking at it for a year - I managed to log on the check on the day it hit an 18 month low. Bugger that.
Did I say I hate LICs?
HML Price at posting:
$1.99 Sentiment: Sell Disclosure: Not Held
