it's a beautiful thing to have an investment that trades at par to its assets...
I also don't buy into the "discount is a great buying opportunity". If anything, discounts are getting wider for a reason... the model isn't supported as much anymore.
Like I have said before... LICs were great when it was the only vehicle to access an actively managed fund on the exchange. With ETMFs, this is no longer the case.
Having said that, I do think people will profit handsomely in the coming months/years... when it comes to LICs being wound up or converting.
The fact old school LICs like AFIC/Argo trade at a premium is an absolute mystery to me. Paying a premium for funds that don't even match an index return.... crazy.
Within 10 years, LICs/LITs will be confined to illiquid assets reliant on a closed capital base...
As for any manager trying to flog another LIC to the market... wow... you have a hard time ahead. Magellan and VGI have done well thanks to generous plans... but they are also very respected in their fields.
Now I wait for the band of LIC lovers and WAM devotees to tell me about stable dividend flows, ability to prevent mass outflows during crises... the spin masters coming out to protect their precious closed capital pool...
PMC Price at posting:
$1.30 Sentiment: None Disclosure: Held
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