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 March 2019)

Excel (CSV): Download

Code Company Market Cap Weight(%)
8IH8I Holdings Limited Chess Depositary Interests 1:129,030,5000.07
8EC8IP Emerg Co Limited28,589,6000.07
AEGAbsolute Equity Perf100,494,0000.24
ACQAcorn Cap INV Fund56,548,5000.13
AIQAlternative Invest Ordinary Units FP12,047,9000.03
AMHAmcil Limited229,280,0000.55
AYZAmyf Five Limited44,485,8000.11
AYKAmyf Four Limited20,654,9000.05
APLAntipodes Global INV584,646,0001.39
ALIArgo Global Limited295,818,0000.7
ARGArgo Investments5,432,200,00012.91
ABWAurora Absolute Ordinary Units FP1,544,8100
AIBAurora GLB Trust Ordinary Units FP912,1670
AUPAurora Property Ordinary Units FP4,245,1800.01
AYFAustralian Enhanced Units FP19,202,1000.05
AFIAustralian Foundat7,200,890,00017.12
ALFAustralian Leaders237,883,0000.57
AUIAustralian United in1,036,820,0002.46
AGMAustraliangovernance Ordinary Units FP43,718,7000.1
BTIBailador Tech INV93,793,3000.22
BSTBarrack ST Invest17,127,4000.04
BHDBenjamin Horngld Limited17,150,2000.04
BELBentley Capital Limited6,470,8700.02
BSNBisan Limited519,4220
BKIBKI Investment Limited1,105,840,0002.63
BAFBlue Sky Alt Access176,230,0000.42
CDMCadence Capital285,057,0000.68
CINCarlton Investments844,542,0002.01
CBCCBG Capital Limited24,736,7000.06
CYACentury Australia88,141,3000.21
CAMClime Capital78,328,1000.19
CLFConcentrated Leaders76,034,0000.18
CIEContango Inc Gen Limited82,219,1000.2
CVFContrarian Valfd Limited71,822,1000.17
CD1Cordish Dixon Pef I Ordinary Units FP67,103,6000.16
CD2Cordish Dixon Pef Ii Ordinary Units FP117,555,0000.28
CD3Cordish Dixon Pefiii Ordinary Units FP120,287,0000.29
DUIDiversified United848,106,0002.02
DJWDjerriwarrh708,176,0001.68
D2ODuxton Water Limited158,521,0000.38
EFFE&P Aus Flagship Ordinary Units FP32,216,6000.08
EGDE&P GBL Disruption Ordinary Units FP252,467,0000.6
EAIEllerston Asian114,757,0000.27
EGIEllerston Global INV106,134,0000.25
EGFEvans & Partners Ordinary Units FP188,547,0000.45
EAFEvanspartnersasiafnd Ordinary Units FP156,128,0000.37
ECLExcelsior Capital41,462,1000.1
FPCFat Prophets GBL Limited39,105,9000.09
FSIFlagship Investments44,374,8000.11
FORForager Aust SHS FND Ordinary Units FP159,951,0000.38
FGXFuture Gen Limited477,600,0001.14
FGGFuture GLB Invest Co534,796,0001.27
GC1Glennon SML Co Limited41,045,5000.1
GFLGlobal Masters Fund21,071,0000.05
GVFGlobal Value FND Limited155,081,0000.37
GCIGryphon Capital Ordinary Units FP178,806,0000.43
HM1Hearts and Minds554,000,0001.32
HMLHenry Morgan Limited60,998,5000.15
HHYHHY Fund Ordinary Units FP4,233,1700.01
IBCIronbark Capital Limited60,351,6000.14
KATKatana Capital30,723,5000.07
LSFL1 Long Short Fund973,989,0002.32
LSXLion Selection Group55,549,9000.13
LRTLowell Res Fund Ordinary Units FP12,900,9000.03
MGGMagellan Glob Trust Ordinary Units FP1,705,270,0004.05
MXTMCP Master Income Ordinary Units FP767,748,0001.83
MVTMercantile Invest44,912,0000.11
MFFMFF Capital INV Limited1,543,460,0003.67
MAXMillinium Alt Fund Ordinary Units FP7,916,3400.02
MLTMilton Corporation2,958,960,0007.03
MIRMirrabooka Invest407,582,0000.97
MMJMMJ Group HLDS Limited57,537,2000.14
MA1Monash Absolute35,230,1000.08
MECMorphic Eef Limited47,358,0000.11
NCCNaos Emerg Opp64,098,7000.15
NACNaos Ex-5046,757,8000.11
NSCNaos SMLCAP Com Limited113,227,0000.27
NBINbglobcorpincomtrust Ordinary Units FP428,550,0001.02
NGENGE Capital Limited29,011,9000.07
OPHOphir High CF Ordinary Units FP511,999,0001.22
OEQOrion Equities3,562,8800.01
OZGOzgrowth Limited56,980,9000.14
PIAPengana Int EQU Limited285,877,0000.68
PICPerpetual Equity Limited363,807,0000.86
PAIPlatinum Asia Limited410,369,0000.98
PMCPlatinum Capital Limited485,315,0001.15
PL8Plato Inc MAX Limited308,485,0000.73
PAFPM Capital Asian Ops60,499,4000.14
PGFPM Capital Fund400,324,0000.95
QRIQualitas Re Income Ordinary Units FP242,047,0000.58
QVEQV Equities Limited287,035,0000.68
RYDRyder Capital Limited78,433,3000.19
SNCSandon Capital Limited42,381,0000.1
SECSpheria Emerging Co113,769,0000.27
SVSSunvest Corporation3,039,7600.01
TGGTempleton Global284,049,0000.68
TOPThorney Opp Limited128,280,0000.3
TEKThorney Tech Limited56,602,7000.13
TGFTribeca Global153,720,0000.37
URBURB Investments Limited69,647,7000.17
VG1Vgi Partners Global682,586,0001.62
WAAWam Active Limited48,038,1000.11
WAMWAM Capital Limited1,584,210,0003.77
WAXWam Research Limited265,386,0000.63
WGBWam Global Limited404,171,0000.96
WGFWmark Global Fund71,149,4000.17
WHFWhitefield Limited399,508,0000.95
WICWestoz INV Limited141,233,0000.34
WLEWam Leaders Limited795,674,0001.89
WMIWam Microcap Limited176,366,0000.42
WMKWatermark Fund Limited67,971,3000.16
WQGWCM Global Growth94,246,7000.22
ZERZETA Resources Limited68,213,0000.16

 

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