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 July 2019)

Excel (CSV): Download

Code Company Market Cap Weight(%)
8IH8I Holdings Limited Chess Depositary Interests 1:121,743,3000.05
8EC8IP Emerg Co Limited31,378,9000.07
AEGAbsolute Equity Perf88,925,4000.2
ACQAcorn Cap INV Fund54,099,2000.12
AIQAlternative Invest11,799,5000.03
AMHAmcil Limited240,263,0000.54
AYZAmyf Five Limited43,575,9000.1
AYKAmyf Four Limited19,748,6000.04
APLAntipodes Global INV512,944,0001.14
ALIArgo Global Limited319,880,0000.71
ARGArgo Investments5,804,520,00012.95
ABWAurora Absolute1,544,8100
AIBAurora GLB Trust692,5720
AUPAurora Property3,543,0700.01
AYFAustralian Enhanced Units FP19,765,0000.04
AFIAustralian Foundat7,500,930,00016.74
ALFAustralian Leaders220,581,0000.49
AUIAustralian United in1,128,900,0002.52
AGMAustraliangovernance47,670,6000.11
BTIBailador Tech INV126,260,0000.28
BSTBarrack ST Invest17,676,9000.04
BHDBenjamin Horngld Limited17,150,2000.04
BELBentley Capital Limited5,709,5900.01
BSNBisan Limited519,4220
BKIBKI Investment Limited1,147,180,0002.56
BAFBlue Sky Alt Access152,826,0000.34
CDMCadence Capital240,217,0000.54
CINCarlton Investments836,600,0001.87
CBCCBG Capital Limited26,451,1000.06
CAMClime Capital88,968,4000.2
CLFConcentrated Leaders75,439,9000.17
CIEContango Inc Gen Limited79,374,7000.18
CVFContrarian Valfd Limited71,283,7000.16
CD1Cordish Dixon Pef I69,834,6000.16
CD2Cordish Dixon Pef Ii119,210,0000.27
CD3Cordish Dixon Pefiii108,043,0000.24
DUIDiversified United919,813,0002.05
DJWDjerriwarrh768,304,0001.71
EFFE&P Aus Flagship34,663,4000.08
EGDE&P GBL Disruption273,559,0000.61
EAIEllerston Asian133,960,0000.3
EGIEllerston Global INV101,429,0000.23
EGFEvans & Partners193,381,0000.43
EAFEvanspartnersasiafnd161,421,0000.36
ECLExcelsior Capital34,938,3000.08
FPCFat Prophets GBL Limited36,633,7000.08
FSIFlagship Investments44,629,8000.1
FORForager Aust SHS FND130,351,0000.29
FGXFuture Gen Limited464,836,0001.04
FGGFuture GLB Invest Co517,165,0001.15
GC1Glennon SML Co Limited39,954,7000.09
GFLGlobal Masters Fund20,374,0000.05
GVFGlobal Value FND Limited143,265,0000.32
GCIGryphon Capital192,736,0000.43
HM1Hearts and Minds590,000,0001.32
HMLHenry Morgan Limited60,998,5000.14
HHYHHY Fund3,663,3200.01
IBCIronbark Capital Limited58,504,1000.13
KATKatana Capital31,449,6000.07
LSFL1 Long Short Fund934,099,0002.08
LSXLion Selection Group51,045,9000.11
LRTLowell Res Fund11,300,8000.03
MGGMagellan Glob Trust2,207,190,0004.92
MOTMCP Income Opp Trust306,000,0000.68
MXTMCP Master Income1,299,190,0002.9
MVTMercantile Invest43,508,5000.1
MFFMFF Capital INV Limited1,572,040,0003.51
MAXMillinium Alt Fund7,436,5600.02
MLTMilton Corporation3,150,820,0007.03
MIRMirrabooka Invest389,931,0000.87
MMJMMJ Group HLDS Limited56,386,5000.13
MA1Monash Absolute36,116,4000.08
MECMorphic Eef Limited45,516,3000.1
NCCNaos Emerg Opp53,016,2000.12
NACNaos Ex-5043,342,9000.1
NSCNaos SMLCAP Com Limited94,853,8000.21
NBINbglobcorpincomtrust424,518,0000.95
NGENGE Capital Limited21,573,0000.05
OPHOphir High CF495,999,0001.11
OEQOrion Equities3,384,7300.01
OZGOzgrowth Limited53,404,6000.12
PIAPengana Int EQU Limited266,747,0000.6
PE1Pengana Private208,306,0000.46
PCIPerpetual Cred Trust448,000,0001
PICPerpetual Equity Limited359,521,0000.8
PAIPlatinum Asia Limited373,167,0000.83
PMCPlatinum Capital Limited453,055,0001.01
PL8Plato Inc MAX Limited334,329,0000.75
PAFPM Capital Asian Ops53,763,8000.12
PGFPM Capital Fund385,463,0000.86
QRIQualitas Re Income272,538,0000.61
QVEQV Equities Limited284,635,0000.64
RYDRyder Capital Limited74,495,4000.17
SNCSandon Capital Limited48,889,0000.11
SECSpheria Emerging Co116,754,0000.26
SVSSunvest Corporation2,553,4000.01
TGGTempleton Global259,814,0000.58
TOPThorney Opp Limited136,425,0000.3
TEKThorney Tech Limited63,034,9000.14
TGFTribeca Global129,150,0000.29
URBURB Investments Limited77,088,6000.17
VG1Vgi Partners Global964,403,0002.15
WAAWam Active Limited45,977,1000.1
WAMWAM Capital Limited1,449,490,0003.23
WAXWam Research Limited252,953,0000.56
WGBWam Global Limited416,867,0000.93
WHFWhitefield Limited447,675,0001
WICWestoz INV Limited137,236,0000.31
WLEWam Leaders Limited866,199,0001.93
WMIWam Microcap Limited171,147,0000.38
WQGWCM Global Growth104,688,0000.23
ZERZETA Resources Limited102,156,0000.23

 

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