Buybacks keep being mentioned again and again as an answer to discounts , but again and again I see buybacks having little or no significant effect in closing LIC discounts. The same goes for improvements in shareholder communication.
Surely the discounts to NTA are largely a reflection of the management fees charged by LICs? I need to buy them at a discount because fees are going to chew up some of the return. On an ongoing basis what does it matter for people with an investment in an LIC today or making an investment tomorrow? As long as the discount doesn't increase.
As per the article - buybacks to defend a communicated line in the sand discount threshold. Name one Aust LIC that has done so?
Sorry John, maybe I’m missing something - NAV is NAV
Discounts are needed to overcome the high fees of external fund managers - it is that simple!. Stick with low MER internally managed LICs like BKI, AUI, DUI, CIN