Ann: Net Tangible Asset Backing - October 2019, page-6

I don't think he is getting deflected but it hasn't been a good month and cash cannot pull you down if the market was going down a small amount.

I had a meeting with him recently and the situation is best described as they have found the right stocks and the cash component is a bit lower than it was and they believe they have cleaned up the portfolio.

I raised the question of performance and shot myself in the foot as they asked what was the timeframe for my investment and I am looking for the following:

Reasonable return preferably fully franked. So the minimum is around 3% and then add the benefit of franking.

I am looking for growth otherwise why invest in small caps. Now that requires them to purchase stocks that are not necessarily a trending stock but a stock based on fundamental valuation and analysis. I suppose in some ways that need to be a mispriced stock because if it was fairly valued there would only be growth via acquisitions or inc eased earnings. That's where I am a bit confused in my own thinking.

I am also looking to avoid me fishing at this end of the market as I don't get the offers at this end. So at this end, I am purely a retail investor. Investing in the LIC I am taking out my research time to get them to do that for me so that I can focus on the rest.

Here is the challenge: Do I then give them a bit of time to get this working or am I going to measure their performance monthly. or should I take a longer view? My view is that there has been a change in strategy and that I should allow that to settle for two reporting periods - This half-year coming up and the full-year results at the year-end 2020.

They have made mistakes and they have accepted that this has been cleared out and they are looking towards the future and I think that my strategy and theirs is roughly similar. I am not interested in a LIC not paying dividends. Nor am I interested in them taking every highflier out there its a blend of investments that drives a basket.

I think - I can never be certain - but I do think they are a good fit if you want exposure at this end of town. MG has delivered in the past but I do acknowledge that I think he has got diverted from the straight and narrow and now thankfully he is focused and will remain that way. He is out of ECL and BHD must be getting resolved as I see it. So from my side as long as there are no more distractions I am a happy investor and I am now looking towards performance. I will give them time to deliver that.