Ann: Monthly NTA Update, page-7

Only just bought into PCG- They elected not to pay a final dividend last year on account they didn't have enough flexibility in terms of franking- so they elected to do a buyback instead and they announced this would be more beneficial to shareholders. This, along with global tension, I imagine is what saw the price decline- which in my view would have made the buyback even more beneficial to remaining shareholders. So buying now seems logical. Prior to pausing the dividend, they were paying quite a decent yield. The individual portfolios like the PIA portfolio are going really well (should have kept it as well as buying PCG). So I'm optimistic about them assuming PCG reintroduce the dividend during the next reporting season (especially since it was an unpopular decision last year).

EZL paid out 6.5 cents fully franked last year, in what was a fairly lacklustre year if you read the annual report. Looking forward, the performance fees should be decent because they are starting from a very low base. Historically they pay out a 1.5 cent dividend in January and then the final dividend varies based on performance- so I don't expect significant price movement until mid year (providing WIC, OZG can keep boosting that NTA upwards). Liquidity in PCG and EZL do seem to be an issue also- but I'm hoping that will work in my favour in the event of positive announcements.

I understand smart people like Geoff Wilson have big holdings in WIC and other LICs. - and discounts to NTA visually represents buying dollar bills for 80cents etc. - so that all makes perfect sense. It's the static dividend that erks me (even if it represents stability), and I like it better when directors are buying.