It was a big year for Listed Investment Companies (LICs) and Exchange Traded Funds (ETFs), both finishing 2018 with about $40 billion on issue and vying for top spot on the ASX. Here are some 2019 expectations.
Author Archive | Peter Rae
This exclusive early access to IIR’s Monthly Report includes the latest recommendations on global LICs, and a summary of the Active ETFs listed on the ASX. There’s now a lot of choice in global listed funds.
It’s important to consider why a LIC is trading at a discount, as what might appear good value worth buying may be built into the price for many years, and the discount may even worsen.
LICs can sustain their dividends not only from current year profits, but from reserves built up in prior years. This report looks at reserve levels as a sign of consistency of future dividends.
Listed Investment Companies (LICs) with international exposures delivered the best results in the last 12 months, showing the Australian focus of most local investors would benefit from greater diversification.
LICs have generally retained their dividends despite some softness in income received from underlying investments, and three prominent, longstanding LICs are worth a look at current prices.
A review of the Listed Investment Company landscape, including where value lies in LICs trading at a discount, but also the healthy premiums where caution is needed in case the popularity of the manager wanes.
It’s common practice for LICs to issue ‘free’ options with their initial public offerings to offset the effect of listing costs on NTA. So, why are LIC options rarely exercised?
With the majority of Listed Investment Companies reporting lower earnings in the six months to 31 Dec 2016, it’s the LICs with adequate profit reserves that can offer dividend sustainability for investors.
There are many LICs with current dividend yields above the average of 4.4%, often fully franked, and there are ways to know whether the dividend is likely to be sustainable. Not all LICs are managed the same way.