2017 was a watershed year for LICs, not only because of the increase in issues, but the new features that address previous shortcomings.
Author Archive | Nathan Umapathy
Unlike managed funds and ETFs, LICs can trade at substantial premiums and discounts to the value of their underlying assets, but this is only one factor to consider when choosing a LIC.
Fee structures of LICs can vary greatly. Higher fees impact on net returns and make beating benchmarks more difficult. On the other hand, expect manager skill and outperformance to come at a higher cost.
Instead of just looking at the historical returns of a Listed Investment Company (LIC), investors should also factor in risk measures such as beta, standard deviation and the Sharpe Ratio when assessing a LIC.