Australian (ASX) Stock Market Forum

ARG - Argo Investments

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Note the Management Expense Ratio of just 14 basis points , 0.14% .

Magellan was creaming a management fee of 1.73 % off the St Jame's Palace holding.
Where ever that $ 23 Billion goes now, it won't cop that again.
 
Dona Ferentes said:
Argo comes out with its monthly NTA today, at $9.52 up from $9.29 at end November, and commentary includes


And today, admittedly a strong day on the market, it moved 21c , up to $10.38

Top 20 holdings:
MQG .. 7.5%
CSL .... 4.9 %
WES ... 4.3 %
CBA ... 4.0 %
ANZ ... 3.3 %
RIO .... 3.0 %
WBC ... 2.6 %
SHL .... 2.5 %
NAB ...2.5 %
REH .... 2.2 %
ALL .... 2.2 %
RHC .... 2.1 %
SYD .... 2.0 %
WOW ...1.9 %
TCL ..... 1.8 %
NVX ..... 1.8 %
AUI ..... 1.7 %
APA .... 1.7 %
Top 20 equity investments 59.5%
Cash and cash equivalents 1.2%

Market cap. .... $7.4bn
Shareholders .. 95,200
Dividend yield .. 2.8%
MER ................... 0.14%
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MQG has been quite the performer. I bought a small parcel at $120 on a larkin Sep '20 and thought it was just going to proxy market beta.
 
The SMSF, as well as myself, have held ARG for many years. So long ago the brokerage, including stamp duty, on the first purchase was ................. wait for it............$108.90!

It should report sometime in February based on its past reporting.
 
What a silly statement you have made.

There is a vast difference between an individual applying "buy, hold and forget" approach and the investing activities of an LIC.
 
divs4ever said:
interesting to see the list of household names still in the ASX 200 ( sarcasm )

makes you wonder about 'buy , hold, and forget ' strategy
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Yes indeed and those were the days when this country actually made stuff. A lot of those companies were still going strong, well into the 1970's and 80's that I can remember. Takeovers and the scrap yard ,was probably where the assets ended their lives. Comm Eng had a big old belt driven lathe from the 19 th century, originally used to make butter churning machinery ,( I saw a photo of it, somewhere in a museum) then up -dated for railstock repairs.
 
dyna said:
Yes indeed and those were the days when this country actually made stuff. A lot of those companies were still going strong, well into the 1970's and 80's that I can remember. Takeovers and the scrap yard ,was probably where the assets ended their lives. Comm Eng had a big old belt driven lathe from the 19 th century, originally used to make butter churning machinery ,( I saw a photo of it, somewhere in a museum) then up -dated for railstock repairs.
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The list is interesting, Takeovers and the scrap heap, indeed.

  • Zinc Industries merged with Imperial Smelting Corp to become Consolidated Zinc, to become RTZ, then CRA to be absorbed (!) into RIO . I wonder if the original holding is still there.
  • Broken Hill South. Perilya (now Chinese) owns and operates the iconic Broken Hill South zinc, lead and silver mine . http://www.perilya.com.au/about-us/history
  • Lion Brewing -> SA Brewing -> Lion Nathan ?
  • Elder Smith - morphed (+ Goldsborough Mort) and morphed again, and again . Now Elders
  • Cyclone . still around https://www.cyclone.com.au/gardening-tools/heritage/
  • Comeng - a twisted tale. (and Comeng trams 1988 - same as Melbourne ones - still rolling in Tuen Mun, HK not so long ago)
  • and some of the others, displaced by imports ! Sold for land value?
 
Belli said:
What a silly statement you have made.

There is a vast difference between an individual applying "buy, hold and forget" approach and the investing activities of an LIC.
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SOME people buy a LIC ( or ETF ) and don't look at what they are doing for years

now i am NOT suggesting you change to a different one every two or three years ( chasing a better performance ) but just keep an eye on your investment just in case a change is warranted ( OR any new cash injections might have a better home available )

i have one LIC that threw away the original mandate ( ex top 50 on the ASX div. payers ) to go to a global long/short strategy via an outsourced investment manager , while WIC is likely to turn into WAM unless i sell them first .

now i hold SOL , but how many of those former MLT holders are going to be smiling ??

also the article highlights how much the 'prominent companies ' listed on the ASX can change in 70 years

now ARG has done a wonderful job navigating those changes , but how many other fund managers stumbled in that time .
 
Dona Ferentes said:
The list is interesting, Takeovers and the scrap heap, indeed.

  • Zinc Industries merged with Imperial Smelting Corp to become Consolidated Zinc, to become RTZ, then CRA to be absorbed (!) into RIO . I wonder if the original holding is still there.
  • Broken Hill South. Perilya (now Chinese) owns and operates the iconic Broken Hill South zinc, lead and silver mine . http://www.perilya.com.au/about-us/history
  • Lion Brewing -> SA Brewing -> Lion Nathan ?
  • Elder Smith - morphed (+ Goldsborough Mort) and morphed again, and again . Now Elders
  • Cyclone . still around https://www.cyclone.com.au/gardening-tools/heritage/
  • Comeng - a twisted tale. (and Comeng trams 1988 - same as Melbourne ones - still rolling in Tuen Mun, HK not so long ago)
  • and some of the others, displaced by imports ! Sold for land value?
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what happened to Moulded Products , i inherited some certificates of theirs ( although i think they were originally bought as Nylex .. looks to be a Nylex certificate over-stamped Moulded Products )
 
divs4ever said:
SOME people buy a LIC ( or ETF ) and don't look at what they are doing for years

now i am NOT suggesting you change to a different one every two or three years ( chasing a better performance ) but just keep an eye on your investment just in case a change is warranted ( OR any new cash injections might have a better home available )

i have one LIC that threw away the original mandate ( ex top 50 on the ASX div. payers ) to go to a global long/short strategy via an outsourced investment manager , while WIC is likely to turn into WAM unless i sell them first .

now i hold SOL , but how many of those former MLT holders are going to be smiling ??

also the article highlights how much the 'prominent companies ' listed on the ASX can change in 70 years

now ARG has done a wonderful job navigating those changes , but how many other fund managers stumbled in that time .
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Good point, I sold MLT when they said I would get SOL shares.
Never been interested in SOL or Platinum or many others, investments have to resonate with me, some dont.
 
although i have held SOL since 2011 ( and they have gone up well over 100% since ) the silver lining is the shareholder reports talking about the companies they have invested in , so you get some divs from SOL but notice CLV must be close to a turnaround ( in 2015 ) so you carefully accumulate ( from 28 cents down to 17 cents ) CLV eventually came good i rescued the investment cash in CLV and twice the cash i invested in SOL and still hold both .

investments in TPG and BKW have been nice too , but you needed to roll up the sleeves and carefully open your wallet to get the best of SOL ,

now MLT , ARG , and AFI do most of the work for you , and if you busy earning a main income elsewhere .. that can be perfect for you ( better returns than the bank account and franking credits to boot )
 
Belli said:
If according to reports, AFI has to sell into the Sydney Airport takeover, then it also means ARG will need to do likewise.
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There is a report in the AFR:
One of Sydney Airport’s biggest institutional investors, the Australian Foundation Investment Company, is a “very reluctant seller” of Sydney Airport’s shares but is resigned to the $23.6 billion takeover proceeding. But AFIC has been trimming its holdings as an investor vote on the takeover approaches on February 3 and thinks the cash offer of $8.75 per share will go through, managing director Mark Freeman said.
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“We were a very reluctant seller. We’re a long-term investor,” Mr Freeman told The Australian Financial Review. “We think it would have been an investment in the portfolio for the next 10 years, but at the same time [we saw] the reality of what was going to happen."
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If the SYD takeover proceeds, then ARG will take the cash. Yes. As will AFI. A shame . At least there will be an amount of the pre-tax attributable gain, known as an “LIC capital gain”, attached to the next dividend (EDIT: August 2022, not the upcoming one).
 
Dona Ferentes said:
At least there will be an amount of the pre-tax attributable gain, known as an “LIC capital gain”, attached to the next dividend (EDIT: August 2022, not the upcoming one).
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Yeah. Holders of various ETF's will get a portion of the discounted capital gains at end of the FY too.
 
And Half Yearly out

Argo Investments will pay an interim fully franked dividend of 16¢ a share, up from 14¢, after delivering a portfolio return of 7.3 per cent over the half based on its NTA growth. This beat the market’s return of 3.8 per cent for the S&P/ASX Accumulation index, after costs and tax.

“In the immediate term, we expect conditions to remain challenging as markets globally digest the effects of rising inflation and the realisation that interest rate rises are imminent."
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Major additions were in EML Payments, Aurizon Holdings, Lendlease, CSL, Macquarie and entered a new position in RAM Essential Services Property Fund. It sold down Washington H. Soul Pattinson and exited Boral, Crown Resorts and AGL Energy.
 
Dona Ferentes said:
It sold down Washington H. Soul Pattinson and exited Boral, Crown Resorts and AGL Energy.
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I suspect that, since ARG held both SOL and MLT, it decided to take the special dividend from MLT and then sell down all or part of the SOL allocation or even possibly a greater amount of SOL. Interesting there is no LIC Capital Gain discount included in this dividend.
 
A SPP opens on Friday 11 March 2022 and offers eligible shareholders the opportunity to acquire up to $30,000 of new fully paid ordinary shares in Argo

The SPP price will be the LOWER of:
• $9.30 per SPP share (maximum price*), which is a 2% discount to the closing price of Argo shares on the record date for SPP entitlement (07 March 2022); OR
• The volume-weighted average price of Argo shares traded on the ASX over the last 5 trading days of the SPP Offer period (18 March 2022 to 24 March 2022 inclusive), rounded down to the nearest cent.
*The maximum price equates to a 3.5% discount

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But the NTA just released for end of Feb is $8.83 (ex divi). Market is choppy; uncertainty abounds. Also just a week to get money in?
 
@Dona Ferentes I'm with you. Everyone to their own I guess. Past performance not a guide to future performance and all that stuff, DYOR,



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