Ann: Intra-Month Performance Update - August 2019, page-8

@Jack1960, fm PJ1950. Appreciate the difference between advice and opinion. Unfortunately, I have enough ALF to last me a lifetime and certainly have no desire to accumulate any more whatever the circumstances. You are quite correct in that ALF has traded for some time at a hefty discount to NTA. The only factor that is going to close the gap between the two, is consumer confidence in that the manager can make the fund perform to a standard where confidence is restored and the SP rises to meet the NTA. That and a privatisation. For eight long years, JB has persisted with his investment plan, failing in the short, medium and long term. It’s there for all to see, thems that aren’t so short sighted or who are suffering from a chronic narcissistic personality disorder that is ! JB puts out glowing summaries of the world economy and how they see it (quite impressive is the quarterly review, generously funded by us the shareholders) and how ALF has either won, or lost, and the reasons why. But that doesn’t change the long term results. Results that you as a private investor would NEVER tolerate, or persist with the same investment strategy without making a significant change to improve your results. That has not occurred. The International Fund has in fact been “privatised” to a fund based entity and it was with extreme excitment that I was able to cash out of that with a small loss. Investors will tolerate a loss making or poor manager for only so long. The advantage for the investor is with a fund, they can cash out at the given market value, generally NTA. With the LIC, SH can be locked into a 20% discount to NTA, for as long as the LIC manager fails to perform. ALF to be wound up ? JB to lose his commission running a $300 million dollar fund ?
I could only wish ! I hope you’re right about the winding up, but I’m not that much of an optimist...more a realist !