Hi
@joewolfI do not own ARG or WAM but I thought I would do a comparison as it is related to an issue I am working on (i.e. comparison of LICs to ETFs).
The data below is the actual end of January data from the ASX for the previous ten years. It show that the annual returns of ARG and WAM are very similar when you do not include the franking credit of dividends but WAM's performance is better (slightly) if you do include the franking credit in your returns.
However, you should look at the variance between the annual returns. ARG had a blinder in 2013 but WAM had a blinder in 2017. That says to me the average return is not a great way to compare the two LICs for short term investors. It is certainly much better than bank interest though over the longer time period. I would be happy to put my mother into either of these LICs.
It is also worth considering that more of ARG's returns are capital gains so if the investor has to pay capital gains tax then ARG's returns are less after applying the tax payers marginal tax rate (when they cash out).
This comparison also does not look at the investment manager performance of the two LICS. The NTA (pre and post tax) is the real measure of the investment manager performance. The market price is just the amount people are prepared to pay at any one point. The investment performance below is somewhat influenced by the ability of the manager of the two LICS to get their share price to a NTA premium which is real money in short term investor's pockets.
Further caveats: these figures do not include a good market crash or the effect of dividend reinvestment schemes, option issues, capital gains tax on the capital part of the return, etc.
| Comparison between ARG and WAM at end Jan |
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| ARG |
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| WAM |
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| Price | Div prev | Franking | return | return inc | Price | Div prev | Franking | return | return inc |
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| year | credit |
| franking |
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| year | credit |
| franking |
| 2012 | 528 |
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| 152.0 |
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| 2013 | 667 | 26.0 | 11.143 | 31.25% | 33.36% |
| 167.5 | 11.0 | 4.714 | 17.43% | 20.54% |
| 2014 | 731 | 26.5 | 11.357 | 13.57% | 15.27% |
| 196.5 | 12.0 | 5.143 | 24.48% | 27.55% |
| 2015 | 799 | 28.0 | 12.000 | 13.13% | 14.77% |
| 201.0 | 12.5 | 5.357 | 8.65% | 11.38% |
| 2016 | 756 | 30.5 | 13.071 | -1.56% | 0.07% |
| 216.0 | 14.0 | 6.000 | 14.43% | 17.41% |
| 2017 | 761 | 30.5 | 13.071 | 4.70% | 6.42% |
| 239.0 | 14.5 | 6.214 | 17.36% | 20.24% |
| 2018 | 839 | 31.0 | 13.286 | 14.32% | 16.07% |
| 245.0 | 15.0 | 6.429 | 8.79% | 11.48% |
| 2019 | 780 | 31.5 | 13.500 | -3.28% | -1.67% |
| 208.0 | 15.5 | 6.643 | -8.78% | -6.06% |
| 2020 | 875 | 33.0 | 14.143 | 16.41% | 18.22% |
| 226.0 | 15.5 | 6.643 | 16.11% | 19.30% |
| 2021 | 875 | 30.0 | 12.857 | 3.43% | 4.90% |
| 224.0 | 15.5 | 6.643 | 5.97% | 8.91% |
| 2022 | 993 | 28.0 | 12.000 | 16.69% | 18.06% |
| 216.0 | 15.5 | 6.643 | 3.35% | 6.31% |
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| Average |
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| 10.87% | 12.55% |
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| 10.78% | 13.71% |
(20min delay)