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.
Active ETFs have many similarities with actively-managed funds, but the key differences are due to investing via an exchange versus a platform. Investors now have another option to consider.
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.
Labor’s proposed franking credit policy has already faced a number of unintended consequences, and the inequitable tax treatment of Listed Investment Companies much also be addressed.
The future of ETFs appears strong as the millennials increase their share of the investment pie, and the majority of financial advisers now comfortable with ETFs.
Plenty of LICs trade at a discount to their NTA value, often for good reasons, but there are opportunities to benefit from a narrowing of the discount if an investor knows what to look for.
The collapse of the Exchange Traded Note (ETN) linked to the value of the VIX was a warning to traders not to be complacent about volatility, and the entire market felt the impact.
ETFs are seeing the growth in popularity in Australia that overseas markets have experienced for many years, and they could reach $50 billion by the end of 2018. What will drive it?
2017 was a watershed year for LICs, not only because of the increase in issues, but the new features that address previous shortcomings.
I like to learn from history, but also look into the future. The articles chosen provide some of the essentials of good investing, but they also peer over the horizon on what the future might bring.
Listed Investment Companies on the ASX are currently worth about $37 billion, but their reporting of performance should improve to give investors a better basis for comparison.
The ATO distinguishes between LICs, deeming some as investors for tax purposes and some as traders for tax purposes. This distinction has implications for the way dividends are sourced and capital gains are treated.
ETFs offer competitive pricing and easy access for investors, plus a wide range of market exposures. EY is forecasting wider investment mandates and continuing double-digit ETF growth globally.
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.
The suite of Exchange Traded Funds available today is extensive, both in Australia and overseas, allowing investors to back the most varied and unusual market views.
Australian LICs and ETFs are holding about $65 billion listed on the ASX, and although the unlisted managed fund is significantly larger, listed trusts are gaining market share. Our Education Centre has the latest data.