Ann: Daily NTA, page-2

NTA should pop to over $1.24 after today's portfolio performance:
(Note: Baidu estimated based on futures, all others Asian trading today)



Discount at $1.02 share price = 18%!
- That's pretty disappointing given EAI's 1yr relative outperformance of NTA to benchmark is ~5% (see 16th July presentation)

Given sister LIC Ellerston Global Investments (EGI) is being converted to an unlisted fund (enter/exit at NTA) due to a similar persistent discount, hopefully shareholders can agitate for the same to happen to EAI or it could become an Active ETF like MA1 is.

Ellerston's buyback at this persistent discount has been pretty pathetic, especially given it had 21.6 million options underwritten at a large discount supposedly in order to "grow shareholder value" - more likely for the fee revenue for Ellerston. That's 21.6 million extra shares to find their way to someone who actually wants to hold them!

Liquidity isn't an issue but there are clearly enough current holders who want out at even an 18% discount. Ellerston should just be grabbing this free 18% return for remaining shareholders, they aren't going to be generating it elsewhere.

Restructure:
It would likely be even easier to convert EAI to an unlisted fund as the unlisted managed fund version of EAI (virtually identical portfolio) already exists:
https://ellerstoncapital.com/our-funds/ellerston-asia-growth-fund/

Pressure is building on LICs trading at big discounts to take action.
https://www.firstlinks.com.au/new-ways-listed-funds-price-discounts

Activist/Discount-maven Funds:
- On 5th June 2020: 1607 Capital Partners announced it had increased to a 9% holding (11.9 million shares)
- On 14th Feb 2020: City of London announced it held 8% (11 million shares)
- Probably need Miles Staude (GVF - transacts as Mirabella) to get into the action too
- A big holder just needs to take the David Kingston approach and get serious and this discount can be resolved for good and then let the shareholders who want this exposure get the portfolio return they are due.
https://www.copyright link/companies/financial-services/ellerston-global-lic-to-convert-to-a-trust-20191107-p5388j