exactly they need to keep up the fast pace to buy anywhere near the 25% they got approval for. Will be interesting to watch if these buy back amounts are maintained or they go missing for a few months again.
All the LIC promoters love to say that buybacks never help the discount contracting. A very convenient argument of course biased to keeping AUMs and fee revenues high for the manager. The data to back this up is pretty much 99% of buybacks utilized are at snail pace acquiring maybe a few percent of the capital in a year at levels near a 20% discount. In such cases no wonder buybacks do not help much.
Almost unheard of is any LIC buying a serious amount of shares back in a year like 25% at discounts a bit more than 10%. We can see in this case thus far anyway, whenever the buyback is meaningful like this, it seems to bring the discount in from near 20% to nearer 10%.
Of course do not expect the LIC promoters to refer to such an example.
VG1 Price at posting:
$1.92 Sentiment: Hold Disclosure: Held
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