Are LICs Like AFIC and Argo ever discounted?

Hey James.

Each month the LIC reports what their NTA (net asset value) on the portfolio is. They release this news which you can find on the ASX website, or the LICs own website, or a broker that shows news updates.

From there you can look at the ‘end of month’ figure and then see how it compares to the share price of the LIC. Most of the time there is a lag because you only have the end of month figure to work with, so for a rough estimate you can look at how much the market has moved since then and estimate what the updated NTA would be.

Here’s one spreadsheet which tracks a few and is usually accurate, but worth double checking (or estimating at least): https://docs.google.com/spreadsheets/d/1zaMMw...

All the best.

To determine if a Listed Investment Company (LIC) like AFIC (Australian Foundation Investment Company) or Argo Investments (Argo) is trading at a discount to its net asset value (NAV), you need to compare the current market price of the LIC’s shares to its reported NAV. The NAV is the total value of all the assets held by the LIC minus any liabilities, divided by the number of shares outstanding. This figure is typically reported by the LIC on a regular basis, often monthly or quarterly.

Here’s how you can check if an LIC is trading at a discount:

1. Find the NAV per Share: This information can usually be found on the LIC’s website or in their regular financial reports to shareholders.
   
2. Check the Current Share Price: This can be found on any major financial news website, or your trading platform.
   
3. Compare the Two: If the current share price is lower than the NAV per share, the LIC is trading at a discount. For example, if the NAV per share is $2.00 and the current share price is $1.90, the LIC is trading at a 5% discount.
   

Regarding whether any LICs are currently trading at a discount, this information changes daily with market conditions and specific company developments. It would be best to look up the most recent data for each LIC you are interested in.

Investing in LICs when they are trading at a discount can be a strategic move because it means you are buying the shares for less than the value of the underlying assets. However, it’s also important to consider other factors such as the historical performance of the LIC, its investment strategy, and dividend history.

Pearler provides a platform that can facilitate the tracking and purchasing of shares in LICs and ETFs, making it easier to manage your investments and capitalize on opportunities when LICs are trading at a discount. Pearler’s focus on long-term investing aligns well with the strategy of buying discounted LICs f

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