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 May 2019)

Excel (CSV): Download

Code Company Market Cap Weight(%)
8IH8I Holdings Limited Chess Depositary Interests 1:123,555,2000.06
8EC8IP Emerg Co Limited29,943,2000.07
AEGAbsolute Equity Perf97,563,9000.23
ACQAcorn Cap INV Fund57,632,9000.14
AIQAlternative Invest11,799,5000.03
AMHAmcil Limited233,398,0000.55
AYZAmyf Five Limited45,092,4000.11
AYKAmyf Four Limited17,936,1000.04
APLAntipodes Global INV551,552,0001.3
ALIArgo Global Limited305,726,0000.72
ARGArgo Investments5,575,770,00013.11
ABWAurora Absolute1,544,8100
AIBAurora GLB Trust837,1750
AUPAurora Property4,150,4500.01
AYFAustralian Enhanced Units FP19,268,4000.05
AFIAustralian Foundat7,128,880,00016.77
ALFAustralian Leaders223,079,0000.52
AUIAustralian United in1,055,540,0002.48
AGMAustraliangovernance45,941,6000.11
BTIBailador Tech INV105,818,0000.25
BSTBarrack ST Invest17,585,3000.04
BHDBenjamin Horngld Limited17,150,2000.04
BELBentley Capital Limited6,547,0000.02
BSNBisan Limited519,4220
BKIBKI Investment Limited1,099,690,0002.59
BAFBlue Sky Alt Access159,873,0000.38
CDMCadence Capital270,644,0000.64
CINCarlton Investments806,154,0001.9
CBCCBG Capital Limited26,176,4000.06
CAMClime Capital80,324,0000.19
CLFConcentrated Leaders76,628,0000.18
CIEContango Inc Gen Limited82,334,3000.19
CVFContrarian Valfd Limited73,230,4000.17
CD1Cordish Dixon Pef I71,395,1000.17
CD2Cordish Dixon Pef Ii128,041,0000.3
CD3Cordish Dixon Pefiii115,245,0000.27
DUIDiversified United871,291,0002.05
DJWDjerriwarrh694,814,0001.63
D2ODuxton Water Limited160,844,0000.38
EFFE&P Aus Flagship32,216,6000.08
EGDE&P GBL Disruption267,168,0000.63
EAIEllerston Asian143,550,0000.34
EGIEllerston Global INV104,600,0000.25
EGFEvans & Partners192,173,0000.45
EAFEvanspartnersasiafnd165,390,0000.39
ECLExcelsior Capital37,692,8000.09
FPPFat Prophets G P F14,715,4000.03
FPCFat Prophets GBL Limited37,982,1000.09
FSIFlagship Investments44,247,2000.1
FORForager Aust SHS FND143,443,0000.34
FGXFuture Gen Limited463,728,0001.09
FGGFuture GLB Invest Co548,508,0001.29
GC1Glennon SML Co Limited42,005,6000.1
GFLGlobal Masters Fund21,017,4000.05
GVFGlobal Value FND Limited147,696,0000.35
GCIGryphon Capital176,176,0000.41
HM1Hearts and Minds566,000,0001.33
HMLHenry Morgan Limited60,998,5000.14
HHYHHY Fund3,663,3200.01
IBCIronbark Capital Limited62,199,1000.15
KATKatana Capital31,030,2000.07
LSFL1 Long Short Fund1,030,500,0002.42
LSXLion Selection Group51,796,5000.12
LRTLowell Res Fund12,511,7000.03
MGGMagellan Glob Trust2,213,370,0005.21
MXTMCP Master Income735,352,0001.73
MVTMercantile Invest43,508,5000.1
MFFMFF Capital INV Limited1,619,280,0003.81
MAXMillinium Alt Fund7,436,5600.02
MLTMilton Corporation2,983,580,0007.02
MIRMirrabooka Invest381,908,0000.9
MMJMMJ Group HLDS Limited52,934,3000.12
MA1Monash Absolute35,673,3000.08
MECMorphic Eef Limited49,199,7000.12
NCCNaos Emerg Opp61,103,4000.14
NACNaos Ex-5045,181,7000.11
NSCNaos SMLCAP Com Limited102,242,0000.24
NBINbglobcorpincomtrust426,532,0001
NGENGE Capital Limited25,292,4000.06
OPHOphir High CF515,999,0001.21
OEQOrion Equities3,384,7300.01
OZGOzgrowth Limited56,980,9000.13
PIAPengana Int EQU Limited267,208,0000.63
PICPerpetual Equity Limited350,013,0000.82
PAIPlatinum Asia Limited409,396,0000.96
PMCPlatinum Capital Limited468,926,0001.1
PL8Plato Inc MAX Limited322,119,0000.76
PAFPM Capital Asian Ops57,746,3000.14
PGFPM Capital Fund411,864,0000.97
QRIQualitas Re Income244,215,0000.57
QVEQV Equities Limited287,398,0000.68
RYDRyder Capital Limited74,903,3000.18
SNCSandon Capital Limited43,107,5000.1
SECSpheria Emerging Co117,417,0000.28
SVSSunvest Corporation3,039,7600.01
TGGTempleton Global272,092,0000.64
TOPThorney Opp Limited129,298,0000.3
TEKThorney Tech Limited61,748,5000.15
TGFTribeca Global148,680,0000.35
URBURB Investments Limited67,911,4000.16
VG1Vgi Partners Global679,800,0001.6
WAAWam Active Limited45,515,0000.11
WAMWAM Capital Limited1,456,670,0003.43
WAXWam Research Limited248,180,0000.58
WGBWam Global Limited405,229,0000.95
WGFWmark Global Fund72,249,7000.17
WHFWhitefield Limited421,550,0000.99
WICWestoz INV Limited137,902,0000.32
WLEWam Leaders Limited858,360,0002.02
WMIWam Microcap Limited168,330,0000.4
WMKWatermark Fund Limited69,599,4000.16
WQGWCM Global Growth101,526,0000.24
ZERZETA Resources Limited66,018,2000.16

 

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