Ann: November 2022 Investment Update, page-23

To bring some fairness to the conversation the WGB performance was not always that bad.



But even in good years it was never outstanding either (performance shown are before fees....).

They completely missed the pivot from growth to value and resources in 2022.
And the merge with TGG completed in October 2021 did not help. Bigger funds generally means lower returns.




Can the strong discount (20%) compensate for the underperformance and fees?

I made money on WGB buying in the depth of March 2020 at ~15% discount and selling after the option announcement at ~10% premium.
However I would not try that stunt again.

For a start Geoff sees discount to NTA in his funds as a feature not a bug.
In every podcast he reiterates that's it's an opportunity because (according to him) over the long term his funds always trade at a premium.
So no buy-back.

The attraction of the Wilson's brand?
A lot of good faith have vanished after the WAR fiasco. Many retirees are down 25% since IPO whereas the ASX is almost flat.
They are a conservative crowd and can hold a grudge for a very long time.

A change of manager? Or more likely the introduction of a co-portfolio manager?
That would be the best scenario. My best LIC performance this year has been RG8 (previously known as VG8). An absolute dog that was transformed when Phil King took over Rob Luciano. Meanwhile VG1 still run by the Rob trades at the same discount and keep losing money to its shareholders.

Unless such catalyst occurs I'll remain a spectator.