pmc i am bemused by this lemon, page-4

I personally don't see how a premium to the NTA was ever justified.

In my mind it was clear PMC deserved to trade at a discount to NTA, the only question was how big of a discount.

The PMC portfolios are modelled exactly (as far as I can tell from the reports) as the larger International fund, so you're not getting the advantage one might have expected from a 'small and nimble' fund run by a smart manager.

So the performance should mirror the unlisted international fund units.

However I've noticed even then, PMC's performance is lower than the unlisted fund's.

This leads me to conclude that while portfolio performance is the same, PMC must be suffering from higher fees than the unlisted fund, most likely due to an additional layer of costs which the unlisted funds don't have in the form of ASX listing costs, auditing fees, director expenses, and so forth.

This alone means you need to buy PMC shares at a discount to NTA just to get the same performance as if you're buying into the units.

However there's another reason why it should trade at a discount: liquidity risks.

There's a good chance the times you want to exit PMC is the same as when other people want to exit the stock. If you held the unlisted units, you would be able to get out at NTA. However

An example might be if Kerr Neilson unexpectedly retired tomorrow, say he had health problems. PMC shares have been around $1.06 the last few sessions, with NTA at $1.28 or so. There's a good chance the shares would fall even further. Holders don't want to take the risk that new custodians of their funds make mediocre investment decisions, while potential buyers don't see the attraction seeing as Neilson's gone.

Another example is as simple as the current economic crisis. People are favoring cash over equities.

These two factors make PMC shares an inferior investment proposition to the units.

Bottom line, PMC deserves to trade at a discount to NTA because at near NTA investors would be better off buying units in the unlisted international shares fund.

That's what I think, anyone disagree?

Been following this stock a while and finally thought it was worth buying this week and bought some, for what its worth.