Thought I'd have a look to see how much of NTA gets drained just for this pile of crap to run every year.

We'll call it $1.65 mil in expenses each year. We'll leave the interest on the notes out because we're going to use Net Assets to calculate the MER.

Based on Net assets of $28.8 mil this means that this vehicle is sucking up 5.7% of NTA annually just to keep running.

That's being generous too, because I think it's debatable whether the deferred tax assets should be included in the calculation.

Doing further DD on this one. I like the strategy and think the managers are decent stock pickers however the fees and capital structure of this LIC are rubbish.
The management fee is 1.75% p.a of GROSS assets, meaning they get to slug shareholders for the convertible notes they have taken on as well.

They also charge 20% of perfromance over their benchmark which is standard.

In their monthly reports I also noticed that they report performance pre fees which I am not a fan of (Wilson does this as well). Once you factor in fees the perfromance of the vehicle has been pretty unremarkable.

Add to this that there are a bunch of options and convertible notes which will dilute NTA when converted/excercised.

This one is ripe for some sort of corporate action. Perhaps Wilson will come sniffing?

Still think the notes are the best way to play here.