As a new small holder after foolishly flipping for a small profit after the listing options ran out of time back in 2018. I am not as concerned about the debt serviceability as management using debt to juice NAV and in turn management fees. NAVs in LICs have only a tangential relationship to share price. I suppose that assertion would make me pro buy back, as buy backs have the double effect of reducing NAV and juicing SP.
I personally think management are the best water asset managers in the country, in the most sophisticated water market in the world. They have also created an incredibly lucrative fee structure for themselves, and props to them, if I was to rewrite the fee structure and make it fairer to holders, I would calculate the management fee on cost basis, not this sketchy revalued monthly model, and also calculate performance on realised value increases in a more private equity style, again not a crappy little economics houses valuation.
In saying that I am happy to hold at these prices and yield.
D2O Price at posting:
$1.32 Sentiment: Hold Disclosure: Held
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