The company structure of LICs carries advantages for income smoothing versus the trust structure of LITs, ensuring it will continue as the vehicle of choice for many listings by investment managers.
Tag Archives | Listed Investment Companies
A fund manager on the wrong side of the market must tough it out and have the strength of their convictions, satisfied that their investment process will bear fruit over the long term. The LIC structure gives more time.
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.
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.
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.
Investing in small caps can deliver significant growth and diversity to a portfolio, but with the potential for strong performance comes greater investment risk, especially from lesser known companies.
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.
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.
Listed Investment Trusts are a rival structure to the long-established Listed Investment Companies, but what should investors know about the differences?