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My LICs have done badly, mostly due to widening discounts to NTA...

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ac_AgenCy

451 Posts.

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03/05/20

21:02

Post #: 44409911
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Originally posted by cutty: ↑

Interested to hear how people's portfolios are holding up, especially those with exposure to both passive and active investments.

Obviously, the indexes have been getting smashed, so consequently so have all the passive index trackers.

It's times like these when active management is touted as coming to the fore. The ability to short, hold cash and exit high risk stocks.

Interested to know if this has been the case, or wether their portfolios, including active funds, have simply replicated the index.

For me, it's been a mixed bag. Some of my active funds have held up quite well, whilst others have fallen farther than the index.

On a side note, does anyone have any comments on the effects of passive funds on market swings. I know a lot of active managers have made comments over the years any market downturn would be exacerbated by the huge increase in passive funds.

The deterioration of price discovery due to the mass exodus to funds which simply replicate, and rely on active investment.

I note the index is moving at unprecedented rate... swinging wildly from losses to gains... A lot of the ETFs are also swinging wildly... at times out of check with the index.

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My LICs have done badly, mostly due to widening discounts to NTA due to a liquidity rush I suspect.

My Magellan managed funds have held up well though, the LITs I managed to pick up a little during the late March tumble.
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