It is clearly important for investors, advisers and researchers to understand how an investment has performed. It is also useful to be able to accurately compare and contrast the performance of differing investments. As an investor, I have always considered the two most important performance reporting measures to be the underlying investment return of the entity (before tax and expenses) and the total expense ratio....
For close to 100 years LICs have long been associated with actively managed portfolios, particularly of Australian shares, and while this holds true today there is a growing range of other assets being made available to investors through the tried-and-true listed investment company (LIC) or Listed Investment Trust (LIT) structure. “There has been strong growth in the number of LICs and LITs offering investors access to global equities, Asian and emerging markets, infrastructure, alternative assets and fixed income,” said Ian Irvine, CEO of the Listed Investment Companies and Trusts Association (LICAT)....
As the number of investors seeking income in today’s record low interest rate world rises, an increasing number are considering Listed Investment Trusts (LITs).These closed-ended trusts (similar to listed investment companies or LICs) enable investors to invest in assets that require longer investment time horizons. LITs accounted for around 20% of the $52.8 billion LIC/LIT sector at the end of December 2020, according to the Listed Investment Companies and Trusts Association (LICAT)....
The Listed Investment Company (LIC) and Listed Investment Trust (LIT) sector closed out 2020 with a sector market capitalisation of $52.8 billion, a reduction of just 0.6% over the 12 months. This compares with the S&P/ASX200 benchmark which fell 1.5% over the same period. As the sector enters its 98th year of continuous operation in Australia, it continues to provide retail investors and SMSF trustees with access to some of the largest and most cost-efficient actively managed investment entities in Australia. ...
With the Listed Investment Company (LIC) and Listed Investment Trust (LIT) sector containing some of the largest, most cost-efficient and longest-standing actively managed investment entities that can be accessed by retail investors in Australia, it might be of interest to see how they have continued to adapt and fare over the year and what may lie ahead in 2021. ...
The listed investment companies (LIC) and listed investment trust (LIT) sector contains some of the largest and most cost efficient actively managed investment entities that can be accessed by retail investors in Australia. Ian Irvine, CEO of Listed Investment Companies and Trusts Association (LICAT) recently participated in a webinar along with Ben Rundle, Portfolio Manager at NAOS Asset Management and moderated by Nina Dunn from Fidare. This panel session covered: The investment universe available via LICs and LITs, the benefits of close-end investment vehicles, why LICs can trade at premiums and discounts to NTA and shareholder activism in the LIC space. Watch Now!...
The Listed Investment Company (LIC) and Listed Investment Trust (LIT) sector has been growing steadily in Australia and has performed well during COVID-19. Click to read more and see: Listed Investment Companies and Trusts (LICAT) Market Capitalisation Comparisons...
In an investing world increasingly dominated by exchange-traded funds (ETFs), it can be easy to forget about good old listed investment companies (LICs) and listed investment trusts (LITs). Yet, unlike ETFs, LICs and LITs have been around in Australia for a long time — about 95 years in fact....
Although the overall market capitalisation for the listed investment company (LIC) and listed investment trust (LIT) sector dropped 2% to $44 million over 2019/20, against a 10.9% drop in the market capitalisation of the S&P/ASX200, the sector’s market cap went up 9.1% during the height of the COVID-19 pandemic, according to data from the Listed Investment Company and Trust Association (LICAT). So why do closed-ended funds provided unique advantages to investors?...
Bell Potter Securities LIC specialist Hayden Nicholson sees a unique opportunity for fund managers as many LICs/LITs begin to rebalance their portfolios and acquire financially strong securities at a lower investment cost ...
Here we outline some of the key things financial advisers and investors need to know about this unique sector. At their most fundamental level LICs and LITs are professionally-managed investment entities which provide investors with the potential to receive the income and capital growth from the underlying investments. As such they give investors...
Ian Irvine from LICAT joins ausbiz to discuss what the regulatory change in stamping exemptions means for the asset classes going forward....
The new financial year, July 1 marked the end of the stamping fee exemption for LICs and LITs, presenting the industry with both opportunities and challenges. The LIC and LIT sector had been popular with investors for over 95 years in Australia, providing easy access to asset classes including Australian shares, global equities, fixed income, infrastructure, and property across a range of investment strategies....
The end of the stamping fee exemption form the new financial year has presented a set of new challenges and opportunities for both listed investment companies (LICs) and listed investment trusts (LITs) as the sector wants to see a “defined, transparent and efficient method” to provide sound advice and for advisers to be fairly renumerated. LICAT’s chair, Angus Gluskie, said the LIC/LIT, stockbroking and advisory industry would be making adjustments to their processes and systems to accommodate the requirements of the new legislation. “Our industry would hope that as market conditions themselves stabilise, that a further range of LICs and LITs can be brought to market, in turn providing investors with a continued albeit gradual expansion of investment choice as well as the benefits provided by closed-ended investment vehicles” ...
The Listed Investment Company and Trust Association (LICAT) has acknowledged the significant difference the federal government’s recent ban on stamping fees relating to listed investment companies (LIC) and listed investment trusts (LIT) will make and called on the industry to adapt effectively to the change. Read more from LICAT Chairman, Angus Gluskie...
In late May the Federal Treasurer announced that the Government would remove listed invested investment entities from the stamping fee exemption provided to all other ASX listed companies. This move seeks to align the treatment of listed investment entities with unlisted investment funds and ETFs, yet in so doing it creates a differential treatment between listed investment companies and trusts and all other ASX listed companies, including AREITS. ...
[embeddoc url="https://www.licat.com.au/wp-content/uploads/2020/06/2020.03-LIC-LIT-Sector-Report.pdf" download="all" viewer="google"] Change in market cap since end 2015 $9,654 Change on Y/a-24% Change in number since end 2015 22 +25%...
Stockbrokers and fund managers have hit back at the federal ban on listed fund commissions, warning it could deter quality products from coming to market and create an uneven playing field for investors....
[embeddoc url="https://www.licat.com.au/wp-content/uploads/2020/07/LIC-March-2020.pdf" download="all" viewer="google"] The market capitalisation of ASX Listed Investment Companies (LICs) and Listed Investment Trusts (LITs) dropped by 23.9% to $40.5bn over the first quarter of 2020. ...
[embeddoc url="https://www.licat.com.au/wp-content/uploads/2020/02/2020.02.20-LICAT_Treasury-Submission-FINAL-no-contacts.pdf" download="all" viewer="google"]...
[embeddoc url="https://www.licat.com.au/wp-content/uploads/2020/01/2019.12-LIC-LIT-Sector-Sector-Report.pdf" download="all" viewer="google"] Change in market cap since end 2014: $26,785 - 102%. Change on Y/a: 30%. Change in number since end 2014: 48 - 74%....
[embeddoc url="https://www.licat.com.au/wp-content/uploads/2020/01/2019.09-LIC-LIT-Sector-Report.pdf" download="all" viewer="google"] Change in market cap since end 2014: $21,500 - 82%. Change on Y/a: 17%. Change in number since end 2014: 47 - 72%....
[embeddoc url="https://www.licat.com.au/wp-content/uploads/2020/01/2019.06-LIC-LIT-Sector-Report.pdf" download="all" viewer="google"] Change in market cap since end 2014: $18,762 - 71%. Change on Y/a: 10%. Change in number since end 2014: 49 - 75%...
[embeddoc url="https://www.licat.com.au/wp-content/uploads/2019/06/2019.03-LIC-LIT-Sector-Report-2.pdf" download="all" viewer="google"] Change in market cap since end 2014: $15,938 - 60%. Change on Y/a: 3%. Change in number since end 2014: 48 - 74%...