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 June 2019)

Excel (CSV): Download

Code Company Market Cap Weight(%)
8IH8I Holdings Limited Chess Depositary Interests 1:121,743,3000.05
8EC8IP Emerg Co Limited33,019,6000.08
AEGAbsolute Equity Perf94,006,9000.22
ACQAcorn Cap INV Fund54,629,6000.13
AIQAlternative Invest11,799,5000.03
AMHAmcil Limited240,263,0000.56
AYZAmyf Five Limited42,969,2000.1
AYKAmyf Four Limited19,718,7000.05
APLAntipodes Global INV540,521,0001.25
ALIArgo Global Limited309,972,0000.72
ARGArgo Investments5,661,550,00013.1
ABWAurora Absolute1,544,8100
AIBAurora GLB Trust875,2280
AUPAurora Property3,462,0800.01
AYFAustralian Enhanced Units FP19,599,4000.05
AFIAustralian Foundat7,308,900,00016.91
ALFAustralian Leaders225,558,0000.52
AUIAustralian United in1,118,950,0002.59
AGMAustraliangovernance46,435,6000.11
BTIBailador Tech INV117,843,0000.27
BSTBarrack ST Invest17,219,0000.04
BHDBenjamin Horngld Limited17,150,2000.04
BELBentley Capital Limited6,014,1100.01
BSNBisan Limited519,4220
BKIBKI Investment Limited1,106,990,0002.56
BAFBlue Sky Alt Access146,249,0000.34
CDMCadence Capital264,238,0000.61
CINCarlton Investments813,831,0001.88
CBCCBG Capital Limited24,355,9000.06
CAMClime Capital81,172,2000.19
CLFConcentrated Leaders75,439,9000.17
CIEContango Inc Gen Limited79,728,8000.18
CVFContrarian Valfd Limited72,559,2000.17
CD1Cordish Dixon Pef I72,175,4000.17
CD2Cordish Dixon Pef Ii124,178,0000.29
CD3Cordish Dixon Pefiii114,525,0000.26
DUIDiversified United938,800,0002.17
DJWDjerriwarrh710,403,0001.64
D2ODuxton Water Limited190,994,0000.44
EFFE&P Aus Flagship33,032,2000.08
EGDE&P GBL Disruption260,776,0000.6
EAIEllerston Asian138,610,0000.32
EGIEllerston Global INV100,853,0000.23
EGFEvans & Partners199,424,0000.46
EAFEvanspartnersasiafnd153,482,0000.36
ECLExcelsior Capital35,808,2000.08
FPPFat Prophets G P F14,872,0000.03
FPCFat Prophets GBL Limited35,509,9000.08
FSIFlagship Investments43,864,7000.1
FORForager Aust SHS FND138,320,0000.32
FGXFuture Gen Limited468,809,0001.08
FGGFuture GLB Invest Co525,001,0001.21
GC1Glennon SML Co Limited40,805,5000.09
GFLGlobal Masters Fund21,124,6000.05
GVFGlobal Value FND Limited144,742,0000.33
GCIGryphon Capital191,800,0000.44
HM1Hearts and Minds586,000,0001.36
HMLHenry Morgan Limited60,998,5000.14
HHYHHY Fund2,442,2100.01
IBCIronbark Capital Limited60,351,6000.14
KATKatana Capital30,610,9000.07
LSFL1 Long Short Fund950,720,0002.2
LSXLion Selection Group52,547,2000.12
LRTLowell Res Fund12,233,7000.03
MGGMagellan Glob Trust2,163,910,0005.01
MOTMCP Income Opp Trust306,000,0000.71
MXTMCP Master Income739,174,0001.71
MVTMercantile Invest43,508,5000.1
MFFMFF Capital INV Limited1,588,310,0003.68
MAXMillinium Alt Fund7,436,5600.02
MLTMilton Corporation3,070,540,0007.1
MIRMirrabooka Invest386,722,0000.89
MMJMMJ Group HLDS Limited54,085,0000.13
MA1Monash Absolute36,116,4000.08
MECMorphic Eef Limited47,094,9000.11
NCCNaos Emerg Opp56,910,1000.13
NACNaos Ex-5045,707,1000.11
NSCNaos SMLCAP Com Limited99,890,3000.23
NBINbglobcorpincomtrust420,348,0000.97
NGENGE Capital Limited23,060,8000.05
OPHOphir High CF501,999,0001.16
OEQOrion Equities3,384,7300.01
OZGOzgrowth Limited55,200,2000.13
PIAPengana Int EQU Limited266,593,0000.62
PE1Pengana Private205,026,0000.47
PICPerpetual Equity Limited347,422,0000.8
PAIPlatinum Asia Limited394,904,0000.91
PMCPlatinum Capital Limited466,040,0001.08
PL8Plato Inc MAX Limited317,984,0000.74
PAFPM Capital Asian Ops52,057,0000.12
PGFPM Capital Fund394,263,0000.91
QRIQualitas Re Income236,990,0000.55
QVEQV Equities Limited287,398,0000.67
RYDRyder Capital Limited74,903,3000.17
SNCSandon Capital Limited39,959,2000.09
SECSpheria Emerging Co124,051,0000.29
SVSSunvest Corporation2,553,4000.01
TGGTempleton Global265,242,0000.61
TOPThorney Opp Limited134,389,0000.31
TEKThorney Tech Limited59,175,6000.14
TGFTribeca Global141,750,0000.33
URBURB Investments Limited69,746,8000.16
VG1Vgi Partners Global654,725,0001.51
WAAWam Active Limited46,670,2000.11
WAMWAM Capital Limited1,499,720,0003.47
WAXWam Research Limited257,726,0000.6
WGBWam Global Limited427,447,0000.99
WHFWhitefield Limited427,061,0000.99
WICWestoz INV Limited137,236,0000.32
WLEWam Leaders Limited862,280,0002
WMIWam Microcap Limited177,486,0000.41
WQGWCM Global Growth101,162,0000.23
ZERZETA Resources Limited63,062,2000.15

 

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