Trading Recommendation: Short term only if discount is at least 3% greater than recent (1 to 6 months) average. Minimum discount advised is 5%
Actual Performance:
In its Feb 2019 monthly report PIC reports this performance comparison with an Inception To Date figure of 7.9%:
Using Excel's CAGR formula I've computed the actual Inception to Date (ITD) performance using the IPO NTA after offer costs ($0.973), 28 Feb 2019 Pre-tax NTA ($1.102), Dividends (14.3 cents), Franking (6.12 cents) and Option value at expiry (0 cents).
Actual Compound Annual Growth Rate for Pre-tax NTA: 7.27%
- PIC's NTA performance includes dilution due to capital raisings at discounts
Actual TSR Comparison with relevant benchmark ETF:
Using Sharesight and a performance report period of 18 Dec 2014 to 28 Feb 2019 you can accurately determine like-for-like Total Shareholder Return annualised performance between investing in the PIC IPO and investing in the closest index fund to the benchmark.
- PIC has an annualised TSR of 5.64%
- VAS has an annualised TSR of 9.3%
Performance Impact on NTA Discount/Premium:
The difference between the VAS TSR of 9.3% and PIC's 7.27% NTA CAGR has driven the discount to around 5% and the PIC TSR to be 5.64%.
It's likely the discount is less than it would normally be due to PIC high level of fully-franked dividends which is driven by the stocks it invests in.