Harvesting Discounts from LICs and other stocks is one of our favourite subjects here at Affluence. We are specialists in the LIC sector having run a dedicated fund since 2016. Our Affluence LIC Fund holds a diversified portfolio of LICs and aims to generate extra returns by buying LICs at unusually large discounts and selling them when the discounts narrow. This discount capture strategy is the greatest source of opportunity.
Our CEO and Portfolio Manager Daryl Wilson recently presented at the InvestmentMarkets Investor Webinar (23-25 July 2024) on Harvesting Discounts from LICs.
You can view the recording of Daryl’s presentation below to gain a better understanding of discount capture and how we approach this niche strategy. Daryl also talks through a few examples of current opportunities in the market..
Discount capture has been a great source of additional returns for us. Our LIC discount capture strategy has delivered approximately the same returns as the underlying LICs themselves, effectively adding 6%+ per annum to gross performance before fees.
Daryl Wilson, July 2024
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