just finished selling my WAX and WAM on Friday because of the high NTA premium. Will probably put funds in VAS or STW, ETF's that trade at consistent very small discount to ASX indexes.
At this point in history, LICs with any history are trading at an average discount the smallest I have seen it since they were forced to publish NTA in late 1990's. There was a small period (couple of months) in 2007 where this also occurred.
In my measure of performance, last year was the first calendar year that WAX did not outperform the ASX300TR for six years. Its a great record but switching from a 20+% premium to a zero premium ETF is a 20% gain in my mind. In last calendar year, only three LICs of the 42 I follow did outperform the ASX300 on my measure. WIC and OZG were two of these and this is probably because of their WA and mining exposure after being smashed the year before. The other one was ALR, which outperformed for the first time in many years.
BTW, my investment strategy is all about staying in the market and monitoring LIC performance and NTA discounts/premiums. I have been doing this since 2002 and the results have been good to me. Your strategy is probably better and faster as my measures vary very slowly. For example, most of my WAX shares were purchase in 2008 at 20% to 30% discount to NTA. I hate capital gains tax.
Happy investing.
WAX Price at posting:
$1.60 Sentiment: Hold Disclosure: Not Held
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