Con88 there has almost always been a discount that AGF trades at...

Con88 there has almost always been a discount that AGF trades at compared to NAV. However I think what the market don't realise is that:

1. AGF is the only vehicle with QFII licence that can invest in Chinese A Shares. Foreigners have very limited access to A Shares and for a retail Australian investor, AGF provides an easier access.

2. On point 1 alone AGF should be trading at a premium to NTA. The discount in my opinion is unwarranted especially considering the improved performance of the fund vs benchmark. More importantly, Chinese equity appears to be in a secular bull phase at the moment.

3. Around 5-6 years ago a similar LIC called India Equities Fund was also trading at a significant discount to NAV. All it took (in my memory) for that fund to gain 30%+ was a decision for the fund manager to redeem the investment at NAV.

All of the above makes me a bull on AGF.