Listed Investment Companies (LICs)

A Listed Investment Company (LIC) is similar to a Managed Fund. The main difference is that investors can buy and sell shares in a LIC on the Australian Securities Exchange (ASX) just like ordinary shares.

Unlike ETFs that track a benchmark, LIC managers are responsible for setting the funds objectives and selecting the investments. Often managers will set investment guidelines (i.e. only invest in companies in the S&P/ASX 200) and will aim to outperform the index by using active investment strategies.

LICs are “closed” investments, so unlike managed funds they don’t issue or cancel new shares as investors come and go. There’s a set number of securities issued and ASX investors transact LIC shares through their stockbroker just like ordinary shares.

Fees are varied but usually higher than ETFs (~1.0% -1.5% of net assets) and it’s common to have a performance fee (~20% of any returns above the specified benchmark).

As at May 2018, there’s over 80 LICs on the ASX.


IMPORTANT
ASXLICs.com doesn’t provide share price data.

The best website is Market Index.
They have current ASX share prices, company charts and announcements, dividend data, directors’ transactions and broker consensus.

 

What type of LICs are there?

Most can be classified under four broad categories:

  1. Australian shares
  2. International shares
  3. Private equity funds that invest in unlisted investments
  4. Specialist funds that invest in special assets or sectors (e.g wineries).

 

Why select a LIC over an ETF?

The main reason someone would choose a LIC over an ETF is to chase Alpha (the return above a benchmark). This is achieved through the investment strategy of the fund and sometimes through the use of gearing.

 


ASX LICs (1 January 2019)

Excel (CSV): Download

Code Company Market Cap Weight(%)
8IH8I Holdings Limited 34,536,4000.09
8EC8IP Emerg Co Limited30,763,6000.08
AEGAbsolute Equity Perf112,167,0000.28
ACQAcorn Cap INV Fund56,280,4000.14
AIQAlternative Invest 12,172,1000.03
AMHAmcil Limited231,540,0000.58
AYZAmyf Five Limited43,474,8000.11
AYKAmyf Four Limited18,922,0000.05
APLAntipodes Global INV548,795,0001.37
ALIArgo Global Limited260,623,0000.65
ARGArgo Investments5,396,600,00013.43
ABWAurora Absolute 1,747,2200
AIBAurora GLB Trust 1,241,8500
AUPAurora Property 4,144,5800.01
AYFAustralian Enhanced Units FP19,177,5000.05
AFIAustralian Foundat7,152,180,00017.8
ALFAustralian Leaders254,746,0000.63
AUIAustralian United in987,153,0002.46
AGMAustraliangovernance 40,376,3000.1
BTIBailador Tech INV91,388,4000.23
BSTBarrack ST Invest16,119,9000.04
BHDBenjamin Horngld Limited17,150,2000.04
BELBentley Capital Limited7,232,1500.02
BSNBisan Limited519,4220
BKIBKI Investment Limited1,102,200,0002.74
BAFBlue Sky Alt Access171,960,0000.43
CDMCadence Capital283,456,0000.71
CINCarlton Investments805,095,0002
CBCCBG Capital Limited23,558,7000.06
CYACentury Australia84,370,6000.21
CAMClime Capital77,690,0000.19
CMICMI Limited41,027,2000.1
CLFConcentrated Leaders69,202,8000.17
CIEContango Inc Gen Limited82,219,1000.2
CVFContrarian Valfd Limited70,413,8000.18
CD1Cordish Dixon65,152,9000.16
CD2Cordish Dixon117,555,0000.29
CD3Cordish Dixon Pefiii 118,847,0000.3
DUIDiversified United810,226,0002.02
DJWDjerriwarrh698,622,0001.74
D2ODuxton Water Limited163,950,0000.41
EFFE&P Aus Flagship 33,045,7000.08
EGDE&P GBL Disruption 230,097,0000.57
EAIEllerston Asian109,143,0000.27
EGIEllerston Global INV106,684,0000.27
EGFEvans & Partners 176,693,0000.44
EAFEvanspartnersasiafnd 143,143,0000.36
FPCFat Prophets GBL Limited38,206,9000.1
FSIFlagship Investments42,079,5000.1
FORForager Aust SHS FND 151,412,0000.38
FGXFuture Gen Limited465,710,0001.16
FGGFuture GLB Invest Co521,083,0001.3
GC1Glennon SML Co Limited44,258,3000.11
GFLGlobal Masters Fund22,196,9000.06
GVFGlobal Value FND Limited152,865,0000.38
GCIGryphon Capital 176,176,0000.44
HM1Hearts and Minds496,000,0001.23
HMLHenry Morgan Limited60,998,5000.15
HHYHHY Fund 4,233,1700.01
IBCIronbark Capital Limited64,258,2000.16
KATKatana Capital32,133,1000.08
LSFL1 Long Short Fund897,533,0002.23
LSXLion Selection Group57,051,3000.14
LRTLowell Res Fund 13,370,8000.03
MGGMagellan Glob Trust 1,730,230,0004.31
MXTMCP Master Income 763,864,0001.9
MVTMercantile Invest46,315,5000.12
MFFMFF Capital INV Limited1,375,580,0003.42
MAXMillinium Alt Fund 7,916,3400.02
MLTMilton Corporation2,865,870,0007.13
MIRMirrabooka Invest400,757,0001
MA1Monash Absolute31,675,3000.08
MECMorphic Eef Limited46,127,6000.11
NCCNaos Emerg Opp65,895,9000.16
NACNaos Ex-5046,757,8000.12
NSCNaos SMLCAP Com Limited114,072,0000.28
NGENGE Capital Limited21,598,4000.05
OEQOrion Equities2,672,1600.01
OZGOzgrowth Limited56,999,2000.14
PIAPengana Int EQU Limited268,165,0000.67
PICPerpetual Equity Limited360,358,0000.9
PAIPlatinum Asia Limited386,867,0000.96
PMCPlatinum Capital Limited503,981,0001.25
PL8Plato Inc MAX Limited295,137,0000.73
PAFPM Capital Asian Ops55,976,1000.14
PGFPM Capital Fund382,766,0000.95
QRIQualitas Re Income 247,105,0000.62
QVEQV Equities Limited288,415,0000.72
RYDRyder Capital Limited62,144,5000.15
SNCSandon Capital Limited40,443,6000.1
SECSpheria Emerging Co114,764,0000.29
SVSSunvest Corporation3,039,7600.01
TGGTempleton Global281,894,0000.7
TOPThorney Opp Limited123,190,0000.31
TEKThorney Tech Limited52,743,5000.13
TGFTribeca Global154,980,0000.39
URBURB Investments Limited65,248,9000.16
VG1Vgi Partners Global619,099,0001.54
WAAWam Active Limited47,118,7000.12
WAMWAM Capital Limited1,541,400,0003.84
WAXWam Research Limited276,759,0000.69
WDEWealth Def EQU Limited111,569,0000.28
WGBWam Global Limited410,519,0001.02
WGFWmark Global Fund72,306,9000.18
WHFWhitefield Limited386,450,0000.96
WICWestoz INV Limited135,911,0000.34
WLEWam Leaders Limited746,384,0001.86
WMIWam Microcap Limited178,474,0000.44
WMKWatermark Fund Limited72,693,5000.18
WQGWCM Global Growth92,451,5000.23
ZERZETA Resources Limited57,338,5000.14

 

Archived Lists


 

How do you value a LIC?

LICs by nature seek to outperform a benchmark. As they have a set number of issued shares, the LIC price can trade at either a premium or discount to the pre-tax Net Tangible Assets (NTA) of the fund.

Over time, LICs tend to revert to their mean premium or discount, so it’s important to be aware of where in the investment cycle a LIC is trading.

According to Bell Potter, the investment cycle of a large-cap LIC (market cap > $500m) is different to a small-cap LIC (market cap < $500m).

Large Cap LICs
Tend to trade at a substantial premium to their pre-tax NTA during poor market conditions, and lower premiums during improving market conditions.

NTA for Large Cap LICs

It could be argued that investors prefer the safety of large-cap LICs during bearish conditions but consider them “low return” investments during bullish conditions.

Small Cap LICs
Tend to trade at a small discount when investors are confident and large discounts when investors are negative.

NTA for Small Cap LICs

Resources

Monthly LIC Reports - from Morningstar

Reference data - from Bell Potter