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 September 2018)

Excel (CSV): Download

Code Company Market Cap Weight(%)
8IH8I Holdings Limited39,989,6000.1
8EC8IP Emerg Co Limited36,711,2000.09
AEGAbsolute Equity Perf124,592,0000.3
ACQAcorn Cap INV Fund68,261,3000.16
AIQAlternative Invest 10,557,4000.03
AMHAmcil Limited241,864,0000.58
AYZAmyf Five Limited54,596,2000.13
AYKAmyf Four Limited19,668,9000.05
APLAntipodes Global INV452,792,0001.08
ALIArgo Global Limited271,705,0000.65
ARGArgo Investments5,695,110,00013.54
ABWAurora Absolute 3,006,8400.01
AIBAurora GLB Trust 1,461,0000
AUPAurora Property 4,655,0500.01
AYFAustralian Enhanced Units FP19,839,8000.05
AFIAustralian Foundat7,401,550,00017.6
ALFAustralian Leaders290,238,0000.69
AUIAustralian United in1,114,820,0002.65
BTIBailador Tech INV99,805,7000.24
BSTBarrack ST Invest18,959,2000.05
BHDBenjamin Horngld Limited17,150,2000.04
BELBentley Capital Limited7,993,4300.02
BSNBisan Limited519,4220
BKIBKI Investment Limited1,116,980,0002.66
BAFBlue Sky Alt Access192,969,0000.46
CDMCadence Capital410,165,0000.98
CINCarlton Investments926,349,0002.2
CBCCBG Capital Limited25,884,7000.06
CYACentury Australia93,797,4000.22
CAMClime Capital83,724,8000.2
CMICMI Limited46,737,4000.11
CLFConcentrated Leaders76,628,0000.18
CIEContango Inc Gen Limited98,101,3000.23
CVFContrarian Valfd Limited89,180,3000.21
CD1Cordish Dixon Pef I 66,323,3000.16
CD2Cordish Dixon Pef Ii 112,036,0000.27
CD3Cordish Dixon Pefiii 104,441,0000.25
DUIDiversified United919,106,0002.19
DJWDjerriwarrh754,069,0001.79
D2ODuxton Water Limited120,865,0000.29
EFFE&P Aus Flagship 32,843,0000.08
EGDE&P GBL Disruption 274,748,0000.65
EAIEllerston Asian114,346,0000.27
EGIEllerston Global INV118,934,0000.28
EGFEvans & Partners 192,869,0000.46
EAFEvanspartnersasiafnd 156,275,0000.37
FPCFat Prophets GBL Limited40,903,8000.1
FSIFlagship Investments43,864,7000.1
FORForager Aust SHS FND 171,476,0000.41
FGXFuture Gen Limited460,270,0001.09
FGGFuture GLB Invest Co411,596,0000.98
GC1Glennon SML Co Limited51,396,7000.12
GFLGlobal Masters Fund21,768,0000.05
GVFGlobal Value FND Limited159,779,0000.38
GCIGryphon Capital 174,862,0000.42
HMLHenry Morgan Limited60,998,5000.15
HHYHHY Fund 5,047,2400.01
IPEIPE Limited10,444,4000.02
IBCIronbark Capital Limited69,315,6000.16
KATKatana Capital33,171,7000.08
LSFL1 Long Short Fund1,203,360,0002.86
LSXLion Selection Group45,040,5000.11
LRTLowell Res Fund 17,342,9000.04
MGGMagellan Glob Trust 1,804,080,0004.29
MXTMCP Master Income 748,936,0001.78
MVTMercantile Invest47,719,0000.11
MFFMFF Capital INV Limited1,547,250,0003.68
MAXMillinium Alt Fund 7,916,3400.02
MLTMilton Corporation3,093,060,0007.35
MIRMirrabooka Invest424,611,0001.01
MA1Monash Absolute41,101,6000.1
MECMorphic Eef Limited47,345,9000.11
NCCNaos Emerg Opp75,785,4000.18
NACNaos Ex-5052,799,6000.13
NSCNaos SMLCAP Com Limited147,871,0000.35
NGENGE Capital Limited24,629,8000.06
OEQOrion Equities3,830,0900.01
OZGOzgrowth Limited65,939,2000.16
PIAPengana Int EQU Limited298,208,0000.71
PICPerpetual Equity Limited292,609,0000.7
PAIPlatinum Asia Limited424,804,0001.01
PMCPlatinum Capital Limited528,954,0001.26
PL8Plato Inc MAX Limited307,001,0000.73
PAFPM Capital Asian Ops64,761,0000.15
PGFPM Capital Fund459,692,0001.09
QVEQV Equities Limited327,888,0000.78
RYDRyder Capital Limited49,437,5000.12
SNCSandon Capital Limited46,982,4000.11
SECSpheria Emerging Co129,358,0000.31
SVSSunvest Corporation3,039,7600.01
TGGTempleton Global337,678,0000.8
TOPThorney Opp Limited138,461,0000.33
TEKThorney Tech Limited64,342,2000.15
URBURB Investments Limited72,435,0000.17
VG1Vgi Partners Global688,505,0001.64
WAAWam Active Limited48,548,3000.12
WAMWAM Capital Limited1,670,910,0003.97
WGBWam Global Limited463,421,0001.1
WAXWam Research Limited316,523,0000.75
WDEWealth Def EQU Limited119,405,0000.28
WGFWmark Global Fund73,501,0000.17
WHFWhitefield Limited418,224,0000.99
WICWestoz INV Limited154,561,0000.37
WLEWam Leaders Limited875,489,0002.08
WMIWam Microcap Limited206,022,0000.49
WMKWatermark Fund Limited73,569,3000.17
WQGWCM Global Growth98,577,0000.23
ZERZETA Resources Limited68,439,8000.16

 

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