Riv,
The difference with the term deposit is that the bank pays you back the capital invested, in full.
CAM doesn't, as the back-of-envelope calculations below demonstrate
CAMs share price reasonably closely mirrors its NTA.
In Dec 2022, CAM’s NTA ex div was $0.857. Now it’s $0.77. That’s minus 10.2% over 2 years, or say minus 5% per year. That knocks a big hole in the headline 6.8% fully franked yield.
Much the same story over the last 12 months: in Dec 2023, CAM’s NTA ex div was $0.822. Now it’s $0.77. That’s minus 6.3% over the past year. An even bigger hole.
That bumf about CAM philosophy to "deliver high conviction portfolios... with above market returns" was their words, not mine (ref: CAM's release to the ASX 13/12/2024, 4:48pm)
LIC's may be a good place to be, but as you say they vary in their make-up markedly.
CAM is a good example of such variability, and under-performance of its peers.
CAM Price at posting:
79.5¢ Sentiment: Sell Disclosure: Not Held
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