Bell Potter LIC Weekly: Capital Preservation In An Equity Sell-Off

By William Gormly | More Articles by William Gormly

VGI Partners Global Investments Limited (VG1) delivered a strong March result with a pre-tax NTA and share price return of 1.4% and 2.7%, respectively. VG1 entered the month with a 72% net equity exposure, predominately weighted towards the United States. The cash weighting of the portfolio rose from 28% to 55% over the month. A weakening AUD against the USD added a 4.8% return to the portfolio. The comparative portfolio underperformance against the MSCI World Net TR Index (A$) over the previous 12 months was recovered after the strong month.

Average discount widens out to 13% in March

Using the LIC/LITs included in the Bell Potter coverage, the average discount to NTA/NAV widened out to 13% in March. The widest it has been since March 2012.

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William Gormly

About William Gormly

William Gormly is an ETF/LIC Specialist at Bell Potter Securities. Will provides comprehensive coverage of the ETF and LIC sectors, producing a range of highly regarded reports covering investment fundamentals, asset class structure and cost, and the role of managed investments in portfolios.

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