Ann: Net Tangible Asset Backing, page-48

Hi Rob
It's always a bit difficult to pin down what makes a LIC trade at a discount. There are a lot of factors. It may be length of track record, their performance, the fee structure, their size and liquidity, their capital structure, the level of market confidence in the strategy, the board or the investment manager. It may also be that the increase in NTA is just not being matched by the interest in their shares. It's not easy to pin down. In the case of HML, personally I suspect it's a combination of options overhang, lack of transparency around the investment portfolio and the corporate structure of the investment manager. But ultimately, to get the answer, you need to read the collective mind of the rest of the market!