If 24 LICs ran the Melbourne Cup, which ones would we back?

LiveWire

2025/11/04

How time flies. Welcome to the ninth running of the Affluence LIC Melbourne Cup! We do this analysis every day, but it’s that special first Tuesday of November when we publish our form guide for all ...

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Welcome to the ninth running of the Affluence LIC Melbourne Cup! We do this analysis every day, but it’s that special first Tuesday of November when we publish our form guide for all ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/if-24-lics-ran-the-melbourne-cup-which-ones-would-we-back\">网页链接</a>\n\n</div>\n","source":"livewire_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If 24 LICs ran the Melbourne Cup, which ones would we back?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf 24 LICs ran the Melbourne Cup, which ones would we back?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-04 04:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.livewiremarkets.com/wires/if-24-lics-ran-the-melbourne-cup-which-ones-would-we-back><strong>LiveWire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>How time flies. Welcome to the ninth running of the Affluence LIC Melbourne Cup! We do this analysis every day, but it’s that special first Tuesday of November when we publish our form guide for all ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/if-24-lics-ran-the-melbourne-cup-which-ones-would-we-back\">网页链接</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"RYD.AU","symbol_name":"RYDER CAPITAL LTD","start_time":0,"source_url":"https://www.livewiremarkets.com/wires/if-24-lics-ran-the-melbourne-cup-which-ones-would-we-back","article_id":"2580244909","we_media_id":null,"thumbnails":[],"rights":{"source":"livewire_stock","url":"https://www.livewiremarkets.com/wires/if-24-lics-ran-the-melbourne-cup-which-ones-would-we-back","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2580244909","pubTimestamp":1762200019,"columns":[],"sourceInfo":{"source_id":"livewire_stock","name":"Livewire Markets"},"weMediaInfo":null,"summary":"How time flies. Welcome to the ninth running of the Affluence LIC Melbourne Cup!We do this analysis every day, but it’s that special first Tuesday of November when we publish our form guide for all to see.As a reminder or introduction to new readers of our guide, to win the real Melbourne Cup requires a horse that is well-trained, has a great jockey, and hasn’t been hit too hard with a weight handicap from the stewards.To win the Affluence LIC Cup, an LIC requires many of the same attributes. They require a great trainer , an opportunistic jockey , and a favourable handicap . Get all that right, and a good result for the owners  will surely not be too far away.There is over $55 billion of gamblers'  money at stake in the Listed Investment Company sector, which makes it significantly bigger than the Melbourne Cup.Lion Selection Group .We called it, and LSX bolted.","collect":0,"end_time":0,"defaultTopTitle":"livewiremarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"RYD.AU":"RYDER CAPITAL LTD","WMA.AU":"Blue Sky Alternatives Access Fund Ltd","LRT.AU":"LOWELL RESOURCES FUND","PGF.AU":"PM CAPITAL GLOBAL OPPORTUNIT","ACQ.AU":"ACORN CAPITAL INVESTMENT FUN","BTI.AU":"BAILADOR TECHNOLOGY INVESTME","MXT.AU":"Metrics Master Income Trust","SB2.AU":"SALTER BROTHERS EMERGING COS","TVL.AU":"TOUCH VENTURES LTD","TEK.AU":"THORNEY TECHNOLOGIES LTD","RF1.AU":"REGAL INVESTMENT FUND","BK7016":"应用软件","TOP.AU":"THORNEY OPPORTUNITIES LTD","CD3.AU":"Cordish Dixon Private Equity Fund III","NGE.AU":"NGE CAPITAL LTD","MRE.AU":"Metrics Real Estate Multi-Strategy Fund","NCC.AU":"NAOS EMERGING OPPORTUNITIES","SDR.AU":"SiteMinder Ltd","NSC.AU":"NAOS SMALL CAP OPPORTUNITIES","GVF.AU":"STAUDE CAPITAL GLOBAL VALUE","CD2.AU":"CD PRIVATE EQUITY FUND II","BK7062":"资产管理与托管银行","WAR.AU":"WAM STRATEGIC VALUE LTD","CD1.AU":"CD PRIVATE EQUITY FUND I","MFF.AU":"MFF CAPITAL INVESTMENTS LTD","SNC.AU":"SANDON CAPITAL INVESTMENTS L","LSX.AU":"LION SELECTION GROUP LIMITED","PIA.AU":"Pengana International Equities Limited","AFI.AU":"AUSTRALIAN FOUNDATION INV CO","PE1.AU":"PENGANA PRIVATE EQUITY TRUST","MIR.AU":"MIRRABOOKA INVESTMENTS LIMITED","NAC.AU":"NAOS EX-50 OPPORTUNITIES CO"},"translate_title":"如果24个LIC管理墨尔本杯，我们会支持哪一个？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NSC.AU":1,"WMA.AU":1,"SNC.AU":1,"CD3.AU":1,"MXT.AU":1,"RF1.AU":1,"PIA.AU":1,"MRE.AU":1,"ACQ.AU":1,"SB2.AU":1,"PMC.AU":1,"SDR.AU":1,"CD1.AU":1,"TEK.AU":1,"MFF.AU":1,"MIR.AU":1,"AFI.AU":1,"WAR.AU":1,"TOP.AU":1,"PE1.AU":1,"GVF.AU":1,"TVL.AU":1,"LSX.AU":1,"LRT.AU":1,"PGF.AU":1,"CD2.AU":1,"NAC.AU":1,"NCC.AU":1,"RYD.AU":1,"NGE.AU":1,"BTI.AU":1},"content_text":"How time flies. Welcome to the ninth running of the Affluence LIC Melbourne Cup! We do this analysis every day, but it’s that special first Tuesday of November when we publish our form guide for all to see.\nAs a reminder or introduction to new readers of our guide, to win the real Melbourne Cup requires a horse that is well-trained, has a great jockey, and hasn’t been hit too hard with a weight handicap from the stewards. \nTo win the Affluence LIC Cup, an LIC requires many of the same attributes. They require a great trainer (the investment manager), an opportunistic jockey (the individual portfolio manager responsible for investment decisions), and a favourable handicap (starting discount or premium to NTA). Get all that right, and a good result for the owners (shareholders) will surely not be too far away.\nThere is over $55 billion of gamblers' (investors') money at stake in the Listed Investment Company sector, which makes it significantly bigger than the Melbourne Cup.\nThe last year has seen a flood of new fixed-income LITs, coinciding with the announced wind-down of the listed hybrid sector. Fixed income managers have flooded the market with new offerings, and existing fixed income LITs have had little trouble in completing secondary raisings. \nEvery month, there has been a new raising to offer investors, with the vast majority closing well ahead of time. These raisings have centred around the private credit sector by established managers. \nThey have been snapped up by financial advisors and retail investors due to the combination of relatively strong income yields, monthly distributions and a listed structure. It’s unclear if investors truly understand the underlying investments they are buying, or the potential for these securities to trade at a discount. However, for the moment, these LITs are the flavour of the month.\nWe can’t see any of the income LITs having the speed to win the Affluence LIC Cup, unless there is a torrential downpour and the track turns very heavy, so we’ve not picked many runners from that sector for this year's race.\nLast year's picks delivered an average 47% return\nBefore we review the field for this year's race, let’s review our top picks from last year. \nSalter Brothers Emerging Companies (ASX: SB2). SB2 didn’t run quite as fast as we had hoped, but it was a race of two halves. For the period from October 2025 to January 2025, it returned 16%. From January to September, it gave back 11%, with the result for the 12 months up 3%. Not a disaster, but we still believe there is way more pace in this runner and it remains one of our favourites.\nRyder Capital (ASX: RYD). This runner had a great start and didn’t fade at the end. For the 12 months to September 2025, RYD returned an outstanding 41% for its punters. This return was from the underlying portfolio, with the discount to NTA remaining stable. Again, this remains one of our more trusted thoroughbreds.\nLion Selection Group (ASX: LSX). We called it, and LSX bolted. For the 12 months to September 2025, this golden runner returned 97% for its backers, through a combination of strong underlying returns and a closing of the discount. It would be a brave punter to expect such a strong race again this year; however, when racing on a gold track, who knows?\nWho would make the cut?\nWe have analysed the field of over 80 LICs, and here, in no particular order, are our 24 starters for the “Race that Stops the Investing Nation”.\nPengana Private Equity (ASX: PE1)\n\n\nStarting Handicap: 20% discount\n\nForm Guide: This horse has U.S.-based private trainers and was\nheavily backed by racegoers early in its career in 2019. The legs appeared to\nfall off this runner in early 2025 when it cratered to a more than 35%\ndiscount. Has recovered well and still has some potential speed from here.\n\nLion\nSelection Group (ASX: LSX)\n\n\nStarting Handicap: 10% discount\n\nForm Guide: One of the winners from last year's race that\nshowed a ridiculous turn of pace. A smaller horse that has been around for a\nlong time. Very specialised training regime that works well in very specific\nrace conditions. Hard to predict its pace from here after such a blistering\nrun.  \n\nNAOS\nEx-50 (ASX: NAC), NAOS Emerging (ASX: NCC) and NAOS Small Cap (ASX: NSC) \n\n\nStarting Handicap: 5-15%\ndiscount \n\nForm Guide: Coming\noff a season of chaos, who knows what this year's race has in store for these\nthree stablemates. The last year has seen tumbles and falls, gutsy comeback\nrides and everything in between. The jockey and trainer must have nerves of\nsteel, as they have saddled up and are ready to go again.\n\nNGE Capital (ASX: NGE)\n\n\nStarting Handicap: 20%\ndiscount\n\nForm Guide: Continues to outperform the vast majority of runners; however, it remains under most punters' radar. NGE has a real advantage due to its small size and unconventional\ntraining strategy. Likes to take chances and could be a real challenger. Distantly\nrelated to the bigger and well-backed LSF.\n\nWAM\nAlternatives (ASX: WMA)\n\n\nStarting Handicap: 12%\ndiscount\n\nForm Guide: This\nhorse continues to be a mid-pack plodder. The trainers have tried hard to get\nthe punters behind it, but the discount refuses to go away. Recent races have\nbeen decidedly average. The trainer recently offered to stand down, but only if\nthe horse was retired from racing. The owners decided to stay in the race. Hard\nto see enough pace for a victory, but we are expecting a better performance\nthis year.\n\nSalter Brothers Emerging Companies (ASX: SB2)\n\n\nStarting Handicap: 30%\ndiscount\n\nForm Guide: Plenty of promise coming into this year's race. The\ntrainer focuses their efforts towards the smaller end of the market, which can\nbe unpredictable. Largest owner has been consistently buying others out. The\nvalue on offer plus the very generous handicap means this is definitely one to\nwatch.\n\nAcorn Capital (ASX: ACQ)\n\n\nStarting Handicap: 25%\ndiscount\n\nForm Guide: It has been a good year for this runner with strong underlying portfolio returns. This trainer focuses on small and micro-caps, which have delivered some success. Regardless of the strong performance, the discount has increased from 20% to 25%, which definitely puts this horse in with a chance.\n\n\n\nCD Private Equity Series (ASX: CD1, ASX: CD2, ASX: CD3)\n\n\nStarting Handicap: 35-40%\ndiscount\n\nForm Guide: These three stablemates have not\nbeen popular with the punters for quite a while, and the discounts have increased\nover the past year. We have done very well backing them over the years, and we continue to believe that between the handicap and the US trainer, they are worth a bob each way.\n\nMetrics\nMaster Income Trust (ASX: MXT)\n\n\nStarting Handicap: 3%\ndiscount\n\nForm Guide: Given\nthe huge wagers punters are putting into debt LITs right now, the largest of\nthem all is lining up. This horse and trainer just keep getting bigger.\nPunters have recently gone off it a bit, and while it may not be the fastest\ngalloper, it has certainly proven its staying power. While unlikely to win\noutright, there is very little chance it will be anywhere near the back.   \n\nMFF Capital Investments (ASX: MFF)\n\n\nStarting Handicap: 10% discount\n\nForm Guide: If the race was three times around, this big\nmare would be leading from the front. Australian jockey but does most of its\ntraining on US tracks. Very impressive runner. \nThe jockey continues to update punters with detailed monthly track\nnotes, however we are still none the wiser what the notes actually mean. \n\nAustralian Foundation Investment Co (ASX: AFI)\n\n\nStarting Handicap: 10%\ndiscount\n\nForm Guide: We thought the stewards had been harsh with their handicap last year; however, it got worse during the year. Has recovered back to\n10%, which is still incredibly generous given history. Largest horse in the\nfield and still a solid racer. Usually around mid-pack but struggles to have\nthe top speed to win in any given year. If you only like to back big horses,\nhave a go at this one.\n\nRegal Investment Fund (ASX: RF1)\n\n\nStarting Handicap: 10%\ndiscount\n\nForm Guide: Back in March, the jockey pushed too hard and the\nhorse had a misstep, which caused both horse and jockey to go for a tumble. Since\nthen, both have recovered well and are back to their normal impressive pace.\nOne of the wilier jockeys in the field and would never bet against them. \n\nLowell Resources Fund (ASX: LRT)\n\n\nStarting Handicap: 20%\ndiscount\n\nForm Guide: One of the very fastest runners from last year,\nproving just how fast a horse can run when it follows this training method. Performance\ncame from the underlying portfolio, with the stewards maintaining a similar\nhandicap to last year. Race conditions were perfect for the horse last year and\nif they stay the same, could deliver another very strong performance.\n\nPlatinum Capital (ASX: PMC)\n\n\nStarting Handicap: Par\n\nForm Guide: New jockeys and a revamped trainer. Its old stablemate, PAI, has retired, and while PMC was slated for the same fate, it has zigged and zagged to run on. This will be the second runner for the new jockeys, and\nthe only speed they know is flat out. We are expecting significant improvement\nfollowing the change in training methods.\n\nBailador Technology (ASX: BTI)\n\n\nStarting Handicap: 35% discount\n\nForm Guide: The trainers and jockeys have continued to do a\nvery impressive job with this runner. They have had some very strong wins in\nlead-up races and remain very well placed for the race. Big potential here, and\nlargely underappreciated by the punters.\n\nPengana International Equities (ASX: PIA)\n\n\nStarting Handicap: 12%\ndiscount\n\nForm Guide: We mentioned last year how this was a trainer\nunder pressure, and this has led to a last-minute kerfuffle. Three members of\nthe trainers board were dumped, with four new directors appointed. It's early\ndays, but we would expect a change in training methods, and in time, either a\nnew trainer or this horse will be retired by next year.\n\nThorney Opportunities (ASX: TOP) and Thorney\nTechnologies (ASX: TEK)\n\n\nStarting Handicap: 35-50%\ndiscount\n\nForm Guide: These two horses may share the same jockey and\ntrainer, but while TOP has put in a fair showing, TEK appears to be stuck\nbehind the barriers. Stewards have afforded both a very generous handicap, but\nregardless, punters are very cold towards them.  \n\nPM Capital Global Opportunities (ASX: PGF)\n\n\nStarting Handicap: 5% premium\n\nForm Guide: One of the fastest horses coming into the big\nrace, the recent races for this international runner has been extremely\nimpressive. The jockey has read the track conditions perfectly, and there is no\nreason to believe they will slow down anytime soon. Heavily backed and carrying\na big weight.\n\nRyder Capital (ASX: RYD)\n\n\nStarting Handicap: 20%\ndiscount\n\nForm Guide: Even after a mighty run last year, the stewards\nhave increased the handicap to a 20% discount. We don’t believe for a second this\nhorse has lost any speed, and with another helpful handicap, we are backing this\none to run hard all the way to the finish line again.\n\nTouch\nVentures (ASX: TVL)\n\n\nStarting Handicap: 50% discount\n\nForm Guide: A relatively unknown trainer took charge and\nbought a big stake in the horse a year or two ago. Training methods are secret\nand results are not apparent as of yet, but could come from well back to win with\nthe right draw and favourable conditions. One to put on the radar.\n\nMirrabooka Investments (ASX: MIR)\n\n\nStarting Handicap: 5%\ndiscount\n\nForm Guide: Stablemate to the giant AFI, MIR uses the same\ntraining methods but on smaller tracks. Excellent bloodlines and good racing\nrecord, but is coming off a rough year. This is a good handicap for this\nrunner, so could well put in a strong showing.\n\nSandon Capital (ASX: SNC) \n\n\nStarting Handicap: 10% discount\n\nForm Guide: Has performed well the last couple of years, and\npunters have recognised the talent. Quite well backed and expected to finish in\nthe top half of the field. Could well be a top 3 finisher if the race goes its\nway.\n\nMetrics Real Estate (ASX: MRE)\n\n\nStarting Handicap: 15% discount\n\nForm Guide: This is a young horse from the well-regarded\nMetrics stable. Training methods for this one are quite different to other\nstablemates and we’re yet to see whether it pays off. Odds are attractive as\nthe punters have gone shy on it. In with a chance, but hard to back with\nconfidence.  \n\nStaude Capital Global Value (ASX: GVF)\n\n\nStarting Handicap: Par\n\nForm Guide: Another one of those horses that always runs\nwell. Has one of the highest average finishing positions of any horse, but\nnever quite has the top speed to go with the fancier runners at the end. Great\ntemperament and is always enthusiastically backed by a loyal fan base.  \n\nWho would fill the top 3 places?\nLike the Melbourne Cup, the field is wide open, and we should always expect the unexpected. But we realise everybody loves a hot tip, so here are our picks. We’ve gone with a blend of three relatively different contenders this year to provide a balanced trifecta.\nSalter Brothers Emerging Companies (ASX: SB2)\nThis was one of our picks last year. As mentioned earlier, things went well for the first half of the year before softening. It remains one of our top picks.\nSB2's investment strategy is to own 25-30 listed and unlisted securities with market capitalisations under $500 million at the time of the initial investment. We believe that, at current pricing, there is significantly more potential in the smaller end of the market.\nIn addition to investing in smaller companies, SB2 is one of the smaller LICs. It has a market capitalisation of approximately $62 million and net assets of approximately $90 million. SB2 trades at more than a 30% discount to NTA. It has paid its first two dividends in the past 12 months; however, this has not yet translated into an improved discount.\nThe largest shareholder is WAM Strategic Value (ASX: WAR). WAR is Wilson Asset Management’s discount capture strategy, and at their last update, they held 18.2% of SB2. WAR has been accumulating SB2 quite rapidly over the past few months, and we would guess this will continue until they reach 19.9%. \n Wilson Asset Management aren’t known for passively holding small LICs. There is a possibility that at some point, WAR will seek to either wind up SB2 or merge it with one of the Wilson Asset Management LICs, which is a very well-established path.\nEven without WAR taking some type of corporate action, we believe there is upside in the underlying portfolio. SB2 management are very bullish on the outlook for both the unlisted and listed portfolios, and strong performance often leads to a tightening in the discount. \nBailador Technology Investments (ASX: BTI)\nBTI listed on the ASX in November 2014 and is a specialist investor in the information technology sector. BTI was founded by David Kirk and Paul Wilson. David captained the All Blacks to win the 1987 Rugby World Cup, was awarded an MBE in 1988, is a Rhodes Scholar, has a degree in Medicine as well as a degree in Philosophy, Politics and Economics from Oxford University. Paul has extensive private equity investment experience with a number of global firms, as well as being a Director of Rajasthan Royals (IPL cricket).\nBTI owns a portfolio of listed and unlisted tech companies. Their two listed positions are as a result of successfully listing previously unlisted holdings. Their largest holding is the listed Siteminder (ASX: SDR), a hotel management software company. SDR accounts for 25% of BTI’s portfolio, even though BTI has realised cash multiple times on this investment over the years. BTI reports that their overall investment portfolio demonstrates revenue growth of 47%, gross margins of 65% and recurring revenue is at 87%.  We are also comforted by the valuation policies of BTI, with the average uplift on private investments at the point of realisation being 39%. Portfolio returns have been solid over the last 5 years at a reported 11.2%.\nRegardless of the successful portfolio results, BTI trades at a near 40% discount to NTA. In the more than 10 years since listing BTI has traded between a 47% discount (during covid) and at a premium to NTA on a couple of occasions, with an average discount of 23%. We believe the current near 40% discount is excessive for a proven manager. At this price you can write off Siteminder to zero, and still get the remaining unlisted portfolio for a 15% discount. We believe there is plenty of upside in BTI.\nAustralian Foundation Investment Co (ASX: AFI)\nWe’ve surprised even ourselves with our third pick this year. We’ve gone for balance in the trifecta. With our other two picks specialising in small caps and growth private equity, AFI provides a large-cap ASX exposure to round out the portfolio.\nWith the AFI discount near historical highs and fees and costs right at the lower end of the LIC sector, this LIC could provide an attractive alternative to a passive ASX200 ETF, particularly if we see a market correction, when the discount has tended to narrow and even turn into a premium, cushioning market falls.\nWe’re the first to admit the performance in recent years hasn’t been great from AFI. But performance tends to some degree to be cyclical and there’s a reasonable chance this could turn around in the future. An ASX200 exposure at around a 10% discount may not go too bad from here, and when combined with our other two picks, provides a reasonably diversified equities exposure.\nBefore you invest, read this!\nWe encourage you to do your own research before investing in any LIC. Remember, a great LIC and a great manager are only part of the story. We also like to make sure they are trading at the right price and that the assets they are investing in are not themselves overvalued. We explain how we do this in our LIC Guide, but in the end it’s up to you to make the investment decision that’s right for you, in conjunction with your financial advisor if you have one.\nIf you’d like to know more about Affluence and our funds that bring together some of the best investment managers in Australia, visit our website.\nTake care and all the best with your investing. \n\n\n\nNever miss an update\n\n    Enjoy this wire? 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