Some investors buy LICs at a discount in the hope of extra gain when the discount is removed, but it might never happen. There’s a way of judging the discount relative to its historic norms.
Tag Archives | LICs
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.
An investment company with both charitable and performance goals is expected to list on the ASX in November 2018. Besides a high conviction equity portfolio, it will invest in medical research.
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.
A recent global survey revealed a lack of trust in investment firms. There are many areas for improvement such as disclosure, transparency, and conflicts of interest, and different LIC structures are examples.
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.
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.
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.
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.
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.