Top member reports
Consensus community valuation
$1.475
Average Intrinsic Value
24.4%
Undervalued by
Active Member Straws
#Bull Case
Added 5 months ago

Refer to my notes in the valuation section. The discount is getting a bit crazy I think. The share price is weaker than it began the year, 1.27 at time of writing. The NTA could easily have risen 4-5% in that 6 week period. Obviously hard to say as they haven't reported the end of month January figure at the time of writing. Their benchmark did about almost 4% in January and this month might be up another 2-3%. This mix of funds is more conservative so that is why I am thinking their NTA might have edged up by 4% this year already up until today.

I think it is still sufferring from doing a large capital raising. Some funds particiapted in this just for a quick hit I believe which didn't really transpire and have slowly had to exit the register. The stock is also way too boring in this current bull market.

Word is they will not do a buyback though so I wouldn't expect one. This LIC should eventually trade at a tighter discount and still capture a lot of the global equity market beta with low volatility. Seems strange it might be at a discount to "live NTA" of circa 17%. That is normally where the rubbish LICs trade at.

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#Affluence LIC Fund #1 position
Last edited 2 months ago

28-May-2020:  I've been looking at the Affluence LIC Fund, which holds nothing but LICs (listed investment companies).  Daryl Wilson's latest "wire" on livewiremarkets.com, titled "A complete guide to LIC investing" was posted on May 22nd (last week) and can be viewed by clicking here.

Currently, the Affluence LIC Fund has FGG (Future Generation Global Fund) as its largest holding, followed by Blue Sky Alternative Access Fund (BAF) which is soon to be managed by Geoff Wilson's WAM Funds, and the third largest position is FGG's sister fund, FGX, the Future Generation Australia Fund.

The L1 Long Short Fund (LSF) makes up #4 and Monash Absolute Investment Company (MA1) is the fund's 5th largest position.

The average discount to NTA across all of the LICs held in the Affluence LIC Fund has now blown out to around 22% to 23%, which is massive.  That means that at these prices, Daryl is buying $1 worth of assets at 77c to 78c. 

FGG itself closed at $1.18, but it finished April at $1.125, while its pre-tax NTA was $1.4262, so there was a 21% discount to NTA in that $1.125 SP.  Even at $1.18, that's a 17.26% discount to that April before-tax NTA of $1.4262. 

While we're used to seeing double digit NTA discounts across many of the global and specialised LICs, those sort of discounts seem to apply to a lot more LICs these days than they have done in the past.  I highlighted recently how varied the discounts and premiums were across the various WAM Funds' LICs, with two of them (WAM & WAX) still trading at high premiums, and others trading at various discounts.  WGB (their global fund) was trading at the largest discount.

BAF, which will soon become WAM Funds' 7th managed LIC, is trading at a discount of over 30%.  Little wonder it's Daryl's second largest position in his Affluence LIC Fund. 

Disclosure:  I hold BAF, FGX, WAM, WGB, WLE, and I'm looking to buy back into FGG shortly.  I'm also looking at investing in the Affluence LIC Fund.

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#Results
Last edited 4 months ago
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#FG Virtual Investment Forum
Last edited 2 months ago

25-May-2020:  https://futuregeninvest.com.au/virtualforum/

With current crowd restrictions in place, and investing roadshows cancelled, FG (who run the FGX & FGG funds) have created a "Virtual Investment Forum".  Everything but the free food and drinks.

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#Company Presentations
Last edited 8 months ago

May 2019 Shareholder Presentation

Both FGX and FGG (together - the FG Funds, or just FG) present after the Wilson Asset Management Group presents in each of Australia's major capital cities during their Australian Roadshows every 6 months, and that link above will take you to the slideshow used in FG's latest roadshow presentation which has just finished (meaning the latest roadshow has just wound up during the past week).

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