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two that caught my eye

Discussion in 'Listed Investment Companies (LIC) and Trusts (LIT)' started by twisted strategies, 8th Mar, 2017.

  1. twisted strategies

    twisted strategies Well-Known Member

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    looking around ( bored ) on the market today

    two LICs ( ?? ) caught my eye

    EDC ( looks to be high risk v. high reward ) investing in property equity ( senior and mezzanine debt ) BUT implies the divs will be quarterly ( DYOR )

    QVE ( i hold rival CIE ) a relatively new player in the ex top 20 mandate , current yield is low as new LICs often are , but will the SP dip enough to give this 'growth appeal )

    ( DYOR )
     
  2. twisted strategies

    twisted strategies Well-Known Member

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  3. Hodor

    Hodor Well-Known Member

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    I hold QVE, dividends are increasing in line with their mandate. QVE is run by IML that have some unlisted funds with excellent track records so I'm hoping QVE can show similar long term performance.

    Given the premium to NTA might be tough to add it, the premium might drop a little at they have just released a SPP at $1.22 from memory.
     
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  4. twisted strategies

    twisted strategies Well-Known Member

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    fairly recently listed , ( so the div. growth potential unproven , but not gloomy )

    has a different mix to CIE ( which i hold ) ...

    should we have ( something close to ) a correction of crash , NTA will fall , but the div. return might hold stable , or even grow .

    entry price opportunities will be the key for me .

    two flavours of ex-top 20 LICs looks a good formula for me since i am more heavily invested in small/mid caps than blue chips ( add top 20 focus ETFs at the bottom of the nasty dip ) .

    i will let NTA work for regarding entry pricing
     
  5. austing

    austing Well-Known Member

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    Re QVE eventual performance likely to mirror their managed funds which use a similar strategy.

    This one is probably the closest to QVE:
    http://iml.com.au/files/Latest_Update_IMFL.pdf

    Considered to to be one of the best value Mgrs in Australia.

    We own a sizable holding of QVE with an average purchase price of around $1. Trading at a premium to NTA even with the discounted SPP price at $1.22 so given dilution is not an issue I doubt I'll be participating in the SPP. Happy to wait for better buying on market should the opportunity arise. But given what we already hold it's not a high priority.

    Haven' t ever been a fan of Contango asset Mgrs but lots of changes there in recent times so will watch with interest to see how they go in the future.

    Cheers
     
    Last edited: 10th Mar, 2017
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  6. twisted strategies

    twisted strategies Well-Known Member

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    i went for CIE ( but not other Contango offerings )
    as i was familiar with several shares held in the portfolio ( and i was well in profit on them ) and several other shares were 'probably should have some exposure to '
    and the focus fitted my needs

    whereas QVE contains several shares i noticed that have dipped into almost attractive prices ( but don't hold ) ( ORI is NOT on my watch-list for various reasons but some exposure is not a deal breaker )

    SGF and FBU in particular ( i already hold SKI and BOQ , but the BOQ exposure directly and indirectly is the one bordering on 'heavy exposure ' )

    those 'dipping' shares MIGHT cause a lowered NTA , triggering a SP dip .

    in CIE i hold

    BOQ
    TAH
    TTS ( but NOT when i bought into CIE .. premerger or TTS and TAH )
    BEN
    ABC
    SKI.

    i am looking for relatively safe div. returns from these two LICs ( after the next crash )
     
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  7. Gormie

    Gormie Member

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    Hi twisted strategies,

    QVE is one I will keep an eye on and I already have CIE.

    One that I have signed up for is the IPO for the Plato Income Maximizer LIC, ASX code PL8.
    It will mimic their successful managed fund and is designed for retirees in that it should provide a stable income stream. The managed fund has a total return of 13.9% over the last five years, of which the dividend has been a consistent 9% after franking.

    http://www.plato.com.au/wp-content/...ncome-Fund-Update-28-Feb-2017-web-version.pdf
     
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  8. twisted strategies

    twisted strategies Well-Known Member

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    i normally like to watch a LIC first and then buy in a suitable dip .

    i also use straight div. yield ( with a small consideration on franking credits ) as an assessment factor , along with investment style and portfolio make-up .

    so Plato and other new entrants will be watched at least until they list a portfolio of assets .

    QVE is still being watched but currently am more likely to add extra BST although buying extra HGG is a higher priority currently.

    being cynical by nature i like to see a basic framework of a plan in operation ,

    timing of buying is important to fund managers also .

    i very much like to see some runs on the board , and rarely even look at IPOs ( and that has saved me many dollars even when buying in later )
     
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  9. twisted strategies

    twisted strategies Well-Known Member

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    another i noticed in the mid-week was GOW more of a SOL style investment company .

    but will need to research further ( before i put it on the watch-list )
     
  10. twisted strategies

    twisted strategies Well-Known Member

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    yet anther LIC ( or is it an REIT ? )

    is URB
    again newly listed and currently rather heavy in cash

    PLEASE you the mandate ( and PDS )

    has a complicated mandate and may not suit many

    I do not hold this and much prefer stable-mate ( ??? ) BKI

    but will watch this heavy in cash and a possible correction soon might present a rare opportunity