17% was the portfolio performance ie NTA plus dividends plus...

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woollydog

3,459 Posts.

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09/04/24

21:54

Post #: 73266161
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Originally posted by Burgerbuns: ↑

I am continually befuddled by AFI's NTA reports and how closely AFI's performance aligns with that of the index and an index ETF - In this case, I've used VAS as an example. Disclaimer, I don't hold VAS in my portfolio. AFIC state their returns as of *period ending March 2024;

As a total simpleton, can somebody please clarify and/or explain the massive difference in what AFIC report as opposed to price charts of that of the XJO, VAS & AFI. Yes, I get the reference to the inclusion of franking for those can take "full advantage of franking credits". AFIC claim that over a 12 month period (ending 31st March 2024) that their 1 year return has been 17.8%. Is this all in the *wording - ie; "Net asset per share growth" vs. actual share price performance. Anyone?

Here is the 12 month price chart of AFI (in blue) v XJO v VAS;

Here is the 3 year returns;

Five year returns;

Ten year returns;

AFIC Average Annual Total Return;

Expand

17% was the portfolio performance ie NTA plus dividends plus franking credits.
NOT the share price.
AFI used to trade at a significant premium to NTA but now trades at a discount ( approx 7% )
hence the 12 month share price performance is much less than that of the NTA because the share price has gone from a premium to a discount.
the differences between NTA performance ( includ divvies reinvested ) versus that of share price for many LICs can be seen on page 6
of the latest Bell Potter LIC review dated 8/4/24
https://www.firstlinks.com.au/uploads/2024/reports/BP_LIC_Weekly_Report_Indicative_NTA_8_Apr_2024.pdf

if you buy longstanding LICs such as AFI at periods of discount to NTA rather than at premiums, you can perform better
than quoted performance figures

Last edited by woollydog: 09/04/24

AFI Price at posting: $7.33 Sentiment: Hold Disclosure: Held
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