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 2018)

Excel (CSV): Download

Code Company Market Cap
8IH8I Holdings Limited 48,867,100
8EC8IP Emerg Co Limited36,095,900
ALRAberdeen Leaders71,578,900
AEGAbsolute Equity Perf108,385,000
ACQAcorn Cap INV Fund59,414,300
AIQAlternative Invest 8,570,800
AMHAmcil Limited235,350,000
AYZAmyf Five Limited59,600,900
AYKAmyf Four Limited21,909,700
AYJAmyf Three Limited13,435,100
APLAntipodes Global INV427,398,000
ALIArgo Global Limited254,142,000
ARGArgo Investments5,482,340,000
AUFAsian Masters Fund165,886,000
ABWAurora Absolute 4,462,410
AIBAurora GLB Trust 3,134,950
AUPAurora Property 7,473,370
AQFAus GOV INDEX Fund48,115,400
AYFAustralian Enhanced Units FP19,739,300
AFIAustralian Foundat7,116,880,000
ALFAustralian Leaders279,337,000
AUIAustralian United in1,061,500,000
BTIBailador Tech INV96,198,300
BSTBarrack ST Invest16,303,100
BHDBenjamin Horngld Limited20,290,400
BELBentley Capital Limited9,135,350
BSNBisan Limited519,422
BKIBKI Investment Limited970,852,000
BAFBlue Sky Alt Access189,890,000
CDMCadence Capital406,986,000
CINCarlton Investments848,513,000
CBCCBG Capital Limited23,308,500
CYACentury Australia89,555,400
CAMClime Capital76,385,400
CMICMI Limited43,600,600
CQGContango GLB GTH Limited90,075,000
CIEContango Inc Gen Limited100,088,000
CVFContrarian Valfd Limited72,110,700
CD1Cordish Dixon Pef I 75,686,600
CD2Cordish Dixon Pef Ii 114,243,000
CD3Cordish Dixon Pefiii 113,085,000
DUIDiversified United828,874,000
DJWDjerriwarrh707,035,000
D2ODuxton Water Limited79,672,800
EGDE&P GBL Disruption 243,508,000
EAIEllerston Asian120,170,000
EGIEllerston Global INV99,546,100
EMFEmerging Master Fund 204,517,000
FPCFat Prophets GBL Limited45,848,300
FSIFlagship Investments40,294,300
FORForager Aust SHS FND 173,714,000
FGXFuture Gen Limited413,682,000
FGGFuture GLB Invest Co381,985,000
GC1Glennon SML Co Limited45,210,100
GFLGlobal Masters Fund22,733,100
GVFGlobal Value FND Limited156,346,000
HMLHenry Morgan Limited61,381,800
HHYHHY Fund 6,186,940
IPEIPE Limited8,681,090
IBCIronbark Capital Limited68,629,300
KATKatana Capital32,890,000
LSXLion Selection Group46,541,800
LRTLowell Res Fund 23,217,100
MGGMagellan Glob Trust 1,568,240,000
MXTMCP Master Income 748,567,000
MVTMercantile Invest51,929,500
MFFMFF Capital INV Limited1,296,850,000
MAXMillinium Alt Fund 7,931,920
MLTMilton Corporation2,909,110,000
MIRMirrabooka Invest409,612,000
MA1Monash Absolute40,527,300
MECMorphic Eef Limited46,388,800
NACNaos Absolute Opp52,536,900
NCCNaos Emerg Opp75,785,400
NSCNaos SMLCAP Com Limited147,026,000
NGENGE Capital Limited23,590,000
OEQOrion Equities3,562,880
OZGOzgrowth Limited64,202,200
PIAPengana Int EQU Limited286,181,000
PICPerpetual Equity Limited290,065,000
PAIPlatinum Asia Limited464,405,000
PMCPlatinum Capital Limited566,124,000
PL8Plato Inc MAX Limited311,451,000
PAFPM Capital Asian Ops71,518,700
PGFPM Capital Fund438,637,000
QVEQV Equities Limited319,622,000
RYDRyder Capital Limited44,992,200
SNCSandon Capital Limited48,777,200
SECSpheria Emerging Co131,348,000
SVSSunvest Corporation3,526,120
TGGTempleton Global315,014,000
TOPThorney Opp Limited140,497,000
TEKThorney Tech Limited57,907,900
URBURB Investments Limited67,461,800
VG1Vgi Partners Global602,823,000
WAAWam Active Limited45,906,600
WAMWAM Capital Limited1,559,510,000
WAXWam Research Limited284,577,000
WDEWealth Def EQU Limited105,834,000
WHFWhitefield Limited396,136,000
WGFWmark Global Fund74,326,800
WICWestoz INV Limited149,000,000
WLEWam Leaders Limited786,521,000
WMIWam Microcap Limited196,000,000
WMKWatermark Fund Limited73,569,300
ZERZETA Resources Limited76,374,800

 

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