Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
In last week's report you mentioned WAM and your views there, which is very much appreciated, I know this LIC has never been on your buy or hold radar but wondering what you would do in your shoes if you had held WAM over the last update and sell-off, would it be a hold or a swap and what might you swap into?
Hi Chris,
Last week’s answer can be read here, even after the ongoing weakness we have no interest in the LIC.
Our preference in the LIC space is Perpetual Credit Income Trust (PCI), a LIT not a LIC, which invests in credit and fixed income assets (bonds, RMBS, ABS, loans), targeting RBA Cash Rate + 3.25% p.a. net of fees, listed May 2019, ~$437m AUM.
For record the LIC/LIT distinction:
Functionally they trade almost identically on the ASX — both closed-ended, both can trade at a premium/discount to NTA/NAV, both report NTA to the market regularly. The difference mostly matters for tax treatment (franking credits on LIC dividends vs. pass-through trust distributions on a LIT) and technically for governance structure (company board vs. responsible entity/trustee).
Take a free trial.
No payment details required.
Forgot password? Request a One Time Password or reset your password
One Time Password
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
A link to create a new password will be sent to the email address you have registered to your account.
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
