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LIC NAV discounts rise with peak market panic

When we took a look at LIC Net Asset Value (NAV) discounts after LICs reported their February NAV, it was clear the state of the markets was taking its toll. LIC discounts to their underlying NAV had fallen to levels not seen for a number of years. That was February. Panic had started at the…

By ETF Watch - Apr 20, 2020

When we took a look at LIC Net Asset Value (NAV) discounts after LICs reported their February NAV, it was clear the state of the markets was taking its toll. LIC discounts to their underlying NAV had fallen to levels not seen for a number of years.

That was February. Panic had started at the supermarkets but not so much in share markets. March was where panic really set in with markets falling about 30% between 1 and 23 March before recovering somewhat late in the month (and continuing to recover into April).

The below chart shows plots the Average LIC pre tax NAV discount for all LICs we cover. Discounts added about 5%, to end the month at a 14% discount to NAV, an average discount that one needs to go back to the darkest days of the GFC to find.

Discounts across the board

Whilst some sort of calmness has returned in April, with a mini rally currently underway, the 31 March NAVs show most funds at a deeper discount to their 12 month average. The table below outlines the latest NAV discounts of all LICs we follow and their 12 month average discount to Pre Tax NAV.

We’ll keen an eye on things and see if April’s mini rally closes many of these discounts.

TickerFund Name31/03/2020 Pre Tax NAV Premium/ Discount12 month average Pre Tax Nav Premium/ DiscountDifference
BTIBailador Technology Investments limited-47.15%-21.98%-25.17%
BAFBlue Sky Alternatives Access Fund Limited-40.63%-29.50%-11.13%
GC1Glennon Small Companies Limited-33.33%-15.14%-18.19%
FPPFat Prophets Global Property Fund-30.90%-19.28%-11.62%
TEKThorney Technologies LTD-30.74%-20.43%-10.30%
LSFL1 Long Short Fund Limited-29.08%-13.89%-15.19%
KATKatana Capital-28.93%-18.85%-10.08%
NSCNAOS Small Cap Opportunities Company Limited-28.45%-18.87%-9.58%
RF1Regal Investment Fund-27.05%-7.45%-19.60%
GFLGlobal Masters Fund-26.86%-22.90%-3.96%
NGENGE Capital Limited-26.47%-21.07%-5.41%
MECMorphic Ethical Equities Fund Limited-26.29%-20.59%-5.70%
SNCSandon Capital Investments Limited-26.06%-12.79%-13.26%
CVFContrarian Value Fund Limited-26.00%-15.36%-10.64%
WGBWAM Global Limited-25.32%-13.48%-11.84%
CDMCadence Capital-25.19%-15.99%-9.20%
PIAPengana International Equities Limited-24.65%-15.22%-9.44%
ALFAustralian Leaders Fund Limited-24.35%-18.87%-5.48%
OZGOzgrowth Limited-22.82%-21.95%-0.87%
FGGFuture Generation Global Investment Company Limited-22.60%-8.81%-13.79%
TOPThorney Opportunities Limited-22.29%-20.99%-1.30%
KKCKKR Credit Income Fund-22.11%-8.52%-13.59%
NACNAOS Ex-50 Opportunities Company Limited-21.88%-17.68%-4.20%
WQGWCM Global Growth Limited-21.52%-16.03%-5.49%
ALIArgo Global Listed Infrastructure Limited-20.85%-11.10%-9.75%
LSXLion Selection Group Limited-19.57%-14.26%-5.31%
VG8VGI Partners Asian Investments Limited-19.26%-9.75%-9.51%
FSIFlagship Investments Limited-18.93%-15.97%-2.96%
EAIEllerston Asian Investments-17.96%-15.14%-2.82%
APLAntipodes Global Investment Company Ltd-17.13%-13.91%-3.22%
TGGTempleton Global Growth-17.12%-14.05%-3.07%
GCIGryphon Capital Income Trust-17.09%0.28%-17.36%
SECSpheria Emerging Companies Limited-16.78%-14.41%-2.37%
FORForager Australian Shares Fund-16.00%-12.33%-3.67%
CINCarlton Investments-15.68%-15.25%-0.42%
MXTMCP Master Income Trust-15.50%0.61%-16.11%
FPCFat Prophets Global Contrarian Fund Ltd-15.49%-18.39%2.90%
PGFPM Capital Global Opportunities Fund Limited-15.28%-16.66%1.38%
PICPerpetual Investment Company-15.16%-7.01%-8.16%
ACQAcorn Capital Investment Fund Limited-14.65%-15.29%0.64%
AEGAbsolute Equity Performance Fund Ltd-14.64%-9.68%-4.96%
IBCIronbark Capital Limited-14.56%-9.37%-5.18%
PCIPerpetual Credit Income Trust-14.53%0.67%-15.20%
PAFPM Capital Asian Opportunities Fund Limited-14.43%-16.12%1.69%
QVEQV Equities Limited-14.38%-10.34%-4.04%
PAIPlatinum Asia Investments Limited-14.28%-6.90%-7.37%
FGXFuture Generation Investment Fund Limited-13.29%-9.48%-3.81%
WICWestoz Investment Company Limited-13.15%-12.52%-0.64%
CIEContango Income Generator Limited-12.66%-13.08%0.42%
PMCPlatinum Capital Limited-11.16%-1.37%-9.80%
MFFMFF Capital Investments Limited-11.14%-6.46%-4.68%
AIBAurora Global Income Trust-11.00%-16.39%5.39%
MGGMagellan Global Trust-10.23%-1.77%-8.46%
VG1VGI Partners Global Investments Limited-9.68%-5.53%-4.14%
MA1Monash Absolute Investment Company-9.57%-16.01%6.45%
AYFAustralian Enhanced Income Fund-9.24%-0.90%-8.34%
EGIEllerston Global Investments Limited-8.36%-13.43%5.07%
MHHMagellan High Conviction Trust-7.79%-2.21%-5.58%
CLFConcentrated Leaders Fund Limited-7.77%-6.49%-1.28%
EAFEvans & Partners Asia Fund-5.60%-2.28%-3.32%
WAAWAM Active-5.20%-0.80%-4.40%
BKIBKI Investment Company Limited-4.69%-2.97%-1.71%
EGDEvans & Partners Global Disruption Fund-4.58%-2.41%-2.17%
PGGPartners Group Global Income Fund-3.97%1.08%-5.05%
MLTMilton Corporation-3.75%-3.52%-0.24%
DUIDiversified United Investment-3.27%-4.40%1.12%
AGMAustralian Governance & Ethical Index Fund-3.27%-1.27%-2.00%
NCCNAOS Emerging Opportunities Company Limited-2.56%-7.62%5.06%
EGFEvans & Partners Global Flagship Fund-2.48%-1.90%-0.58%
WLEWAM Leaders Limited-2.45%-7.39%4.94%
AUIAustralian United Investment-0.94%-4.63%3.70%
MIRMirrabooka Investments0.53%2.26%-1.73%
WMIWAM Microcap Limited0.63%-2.21%2.83%
PL8Plato Income Maximiser Limited2.16%3.36%-1.19%
GVFGlobal Value Fund Limited2.43%-4.35%6.78%
DJWDjerriwarrh Investments3.95%4.95%-1.00%
ARGArgo Investments6.36%-1.12%7.48%
AFIAustralian Foundation Investment Company (AFIC)9.07%0.28%8.80%
WAMWAM Capital23.43%15.12%8.31%
WAXWAM Research Limited36.57%19.06%17.51%

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