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Forager Funds (???)

Discussion in 'Listed Investment Companies (LIC) and Trusts (LIT)' started by jafeica, 21st Sep, 2016.

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  1. jafeica

    jafeica New Member

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    I'm jumping the gun a little on this one as Forager are just going through the process of shutting the door on their fund to new investor deposits and then are looking to list on ASX as an LIT (rather than LIC), but what would be the thoughts of the community here around the long term prospects for these guys?

    Cheers
     
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  2. austing

    austing Well-Known Member

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    I actually posted the information here last night then when I realised it was a LIT so I deleted it. But in hindsight I suppose the LIC thread is about as suitable as any for it. The article is found here:

    Fixing the Future of the Forager Australian Shares Fund - Forager Funds

    I haven't looked into the fund in detail but Forager is a very good mgr. However the fund mostly invests in small caps which have rallied hard in recent times pushing up returns. I imagine the fees are also likely to be high. Will need to see if unit holders agree to the resolution. If it proceeds probably best to wait until small caps lose favour then under the new LIT structure you might be able to get it as a discount. Being a listed trust distributions will tend to be lumpy and irregular unlike most LICs.

    As for long term outlook one can never be sure. They're dealing in the riskier end of the market so bear that in mind. Also possibly an element of key person risk.
     
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  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    I wasn't aware of the existence of LITs until now - a quick read of the information on the ASX website - they make a lot of sense to me, solves some of the structural issues I see with LICs and avoid some of the issues with ETFs.

    Given the ASX seem to group them together and they are similar in intent, it's just the underlying structure which differs - it would make sense for me to expand this part of the site to cover both "LICs and LITs" wouldn't it?
     
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  4. austing

    austing Well-Known Member

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    Yes thank you. As per the ASX products list they are grouped together incase others aren't aware of this:

    Complete list of exchange-traded products on ASX.
     
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  5. jafeica

    jafeica New Member

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    Ahh key person risk. I've been on the wrong end of that in the UK recently when the "star" fund managers upped and left a fund I have monies in....

    Replacement for departing star fund managers at popular Miton UK Value Opportunities

    In particular this quote has me a little concerned about the future, especially as the main reason I bought into the fund was due to the "investment philosophy":

    "Miton said it will shortly produce an updated investment philosophy for the fund in due course, although it said the name would not change."

    But I digress...
     
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  6. jafeica

    jafeica New Member

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