GD: I think the peace of mind that AFIC provides is that, because we are very much a long term investor, there's quite a long history of performance within the company, there's quite a number of experienced directors and investment managers within the team.
BT: We do have the advantage of long term knowledge, a memory of the market.
BT: If you're trading a portfolio you're going to be constantly paying tax, whereas we hold the shares for the long term so we're not paying tax along the way.
RB: This means that the capital gain that we made on the investments that we've made are at work for the shareholders earning a dividend yield and earning additional capital gain without having, um, that impost of tax.
BT: It's a much more efficient system than a trading fund.
BT: LICs, which have build up some reserves, do have capacity for in the short run to, as it were, subsidize or maintain a dividend.
BT: Many people rely on these companies for their living expenses, so something that's a little bit more certain about the income is very valuable.