According to my calculations, AFI was the best-performing LIC for fy2007/08 when considering total shareholder return, and assuming a tax rate of 0%. The standings are as follows:
AFI down 5.7% ARG down 7.0% MLT down 8.2% AUI down 8.6% CHO down 11.2% DUI down 12.3%
All of these 'old school' LICs outperformed the ASX200 index fund, STW, which was down 12.7% for the year (including dividends).
Not unexpectedly, the new generation of LICs, with their high fees and active management strategies, failed to impress. Here's a selection of their returns:
HIC down 13.5% WAM down 26.7% CAM down 30.4% WIL down 32.7% CTN down 40.5%
This is further confirmation that holding high-quality, low-cost LICs is an excellent strategy for long-term wealth accumulation with some potential for short-term protection from market volatility.
AFI Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Not Held
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