You are talking about a fund and manager who has never shown they are able to meet, let alone exceed, the base benchmark.
Large discounts do look appealing, until you realise it will require shareholder revolt to change anything.
The closed fund model is broken. There can be no denying that. The fact we are now seeing atronomical discounts, proves:
New investors are more aligned to passive ETFs,
Those seeking active management, are now choosing open ETMFs rather than closed funds;
There is still a bad taste in everyone's mouth thanks to how many closed funds have been flogged to the market by greedy, unscrupulous fund managers...
Case in point - L1 Funds Management.
Good luck... but I wouldn't hold your breath waiting for the discount to miraculously narrow.
LICs are the dinosaurs of the investment world... they aren't just out of favour here... it's everywhere.
Why anyone buys into one at the float is absolutely beyond me. It's sheer madness... Just give me 20% of your money... because that's what you will lose in the proceeding period.
LSF was the straw that broke the camels back for me. What a disgrace that was. Yet, thanks to corrupt commissions still allowed for LIC floats... everyone was supporting it.
If only shareholders actually came together and held fund managers to account... if only.
SEC Price at posting:
$1.29 Sentiment: None Disclosure: Not Held
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