Five famous fundies with heavily-discounted LICsLet’s select...

Five famous fundies with heavily-discounted LICs

Let’s select five high-profile managers with ‘cheap’ LICs, defined as trading at a discount to NTA of about 20% as at the latest NTA disclosure (generally, 5 June 2020). None of these are recommendations, but clearly, if anyone likes the fund manager and believes the NTA discount will narrow, it could be a good entry point.

(Investors should check the latest price relative to NTA as changes in absolute and relative terms occur every day).

1. Australian Leaders Fund (ALF), price $0.90, NTA $1.14, discount 21%

ALF is managed by Justin Braitling and a large team at Watermark Asset Management. ALF is not one of the new breed of funds jumping on the LIC bandwagon, having been established in 2003. ALF is differentiated by its absolute return strategy and long/short positioning, and although this protected the NTA during the March 2020 coronavirus sell off, the share price did not respond. After some early success, ALF has struggled to attract support for many years and remains at a wide discount.