most of the solid and well established investment trusts listed in london are currently at rare premiums or fine discounts. the likely reason for this is that they're being seen as safer than even gvt debt yet pay regular divis. IT's listed in london are allowed to pay divis from the divis thay in turn receive. this is obviously being seen by the mkt as better than bond income. add things up and we have sound income, a better investment than bonds and a strong upside to a recovery in the mkt.
now you are asking 40, 'why tell me this ?'
well just a short time ago i discovered the asx is surveying the scene for LIC's in oz to see if they think it's a good idea to pay divis, from divis received from investments, rather than paying divis ONLY IF THE LIC HAS MADE A NTA to NTA PROFIT SINCE THE LAST REPORTING YEAR. it's my guess asx will follow london. if so, then some of the lic's in oz are going to be more popular. hence their prices should rise in tandem.
i currently hold WIL. look it up. very sound holdings. no miners. no speccies. hardly any churning. discount to mkt of approx 25%. this is stupid. just stupid. however, even allowing for a discount of say 12% which might be considered fair for such investments value abounds. ok, so Wilson is considered a boutique outfit but having met some of the tribe i'm more than happy. the divis will be sound and should not disappoint as long as the asx moves forard on the rules.
