justbobinstos would call directors of the trustee of a lic (a...

justbob

instos would call directors of the trustee of a lic (a managed fund - not a company) a ****** if they issued shares or options at less than nta - the directors would have zero credibility and would never be trusted by instos.

The main motive of the directors, i see would be to increase the managers management fee.

holders of the lic - alf a lot better off if wind up at nta + franking credits.(ie. $1.42 + franking credits - the suggestion to issue options with est $1.25 exercise price & in effect put a cap on the alf price of est. $1.25 is non-sensical)

would other lic's- afic, argo etc ever issue options to be exercised at significantly less than nta.- no b* way.

buying back is i suggest for the objective of reducing the management & directors credibility discount, which is what the discount is.

The stated objective of buying back to reduce the discount to nta is inconsistent with then issuing further shares or options at large discounts to nta.

re franking credits - my guess from the nta announcement of $1.42 is a fully franked dividend of 7-10 cents could be paid out in april. We have to guess on the present & 31 mar projected franking credits balances as this is not regularly publically disclosed.

also look at massive conflicts of interest of directors with associated lics - wam, waa, wax, cam etc. & unlisted funds managed.- if the directors/managers get nervous about an investment in a company - which lic fund sold out first- who gets sold out last.

also look at which fund (waa?)gets first look at investment prospects - which fund gets stuck with the duds (alf?).