Yesterday was a very poor day for ARG.. 12 month low. AFI and MLT fared much better.
Can't just be due to the resources holdings within ARG surely? Similar funds hold them as well.
Any thoughts?
Yesterday was a very poor day for ARG.. 12 month low. AFI and MLT fared much better.
Can't just be due to the resources holdings within ARG surely? Similar funds hold them as well.
Any thoughts?
That being so, housing and infrastructure are likely to be some of the key areas to benefit from the imminent budget. Building materials stocks including CSR, James Hardie and Adbri have already started to rally ahead of next week."It's hard to see anything on a grand scale that's going to make a lot of economic sense, unfortunately." He is doubtful that supply chain changes will lead to a renewed focus on domestic alternatives: "It might mean for an Australian company that you source from Turkey, China and Vietnam rather than just China perhaps," he said.
"They are an obvious beneficiary from the budget and there's a pretty direct correlation," said Mr Beddow. "If there's more housing starts or more incentives – particularly low interest rates – people will probably buy [or] build more housing. "I don't think that there's a lot of direct effect outside the builders."
each LIC is different. I think the older LICs, such as ARG, the AFI stable, and Milton (& maybe WAM stable) are different to the newer manager aligned hotshots, which seem to have higher fee structures and often are just listed echoes of unlisted managed funds.... LIC's holdings to protect capital
.... [&] generate reliable returns;
does the LIC industry need to reconsider their "Buy & hold" strategy and look to re-weight their holdings?
Selling down sizable holdings of the banks and financials will trigger significant capital gains. Where do conservative players like ARG and AFIC redeploy to?
Occasionally a takeover (with CG implications) delivers up a pool of new investment money. It is a far different story to sell down without appearing to be a distressed seller. The tax-aware manner can reflect the fact that parcels were accumulated on the way in (up) and gains allocated to parcels on the way out. And offset against losses, if necessary. Being a longer term holder with low turnover helps minimise tax exposure, by definitionThe selling of investments is relatively rare and generally only occurs due to takeovers or when it is perceived that the long-term value of an investment is compromised by deteriorating industry conditions or other concerns.
Given your post and the growing failure of significant allocations of many LIC's holdings to protect capital let alone generate reliable returns; does the LIC industry need to reconsider their "Buy & hold" strategy and look to re-weight their holdings?
Selling down sizable holdings of the banks and financials will trigger significant capital gains. Where do conservative players like ARG and AFIC redeploy to?
I remember someone on here recently criticising AFI for selling down AMP, then criticising them for selling down banks and loading up on cleanaway.Given your post and the growing failure of significant allocations of many LIC's holdings to protect capital let alone generate reliable returns; does the LIC industry need to reconsider their "Buy & hold" strategy and look to re-weight their holdings?
Selling down sizable holdings of the banks and financials will trigger significant capital gains. Where do conservative players like ARG and AFIC redeploy to?
I remember someone on here recently criticising AFI for selling down AMP, then criticising them for selling down banks and loading up on cleanaway.
I bought AFI and MLT pre the covid debacle, they are both down about 20c on the purchase price, but both have given two dividends since.
I wish all my dividend plays were performing as well, as it is important to have a dividend when it is a major form of your income.
I guess a lot depends on what stage of life you are in, as to what your investment objectives are and what recovery options you have.
It would be good to see whether the fund managers had to dip into reserves to maintain the dividend since some of their major holdings (looking at you; banks) dropped recent dividends.I wish all my dividend plays were performing as well, as it is important to have a dividend when it is a major form of your income.
I guess a lot depends on what stage of life you are in, as to what your investment objectives are and what recovery options you have.
At least we still kept the franking credits, without them it would be very difficult, many would be going onto a government pension IMO.It would be good to see whether the fund managers had to dip into reserves to maintain the dividend since some of their major holdings (looking at you; banks) dropped recent dividends.
I agree with your comment on investor profile however I would imagine a significant proportion of their shareholder base would be self funded retirees relying on the dividends for passive income. Many will be anxious where they may need to shift to in order to maintain their income without moving up the risk curve.
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