Opportunities in Undervalued Global Equity LICs

Peter Rae

Much has been written about the fact that Australian retail investors’ portfolios are heavily weighted to Australian equities, despite the domestic market representing a very small proportion of global equity markets. It is not difficult to understand the reasons for this home bias given the benefits of the dividend franking... Show More

Listed Managed Investments: Quarterly Review

Peter Rae

In its latest Quarterly LMI Market Review, Independent Investment Research (IIR) provides detailed coverage of 47 listed investment companies, listed investment trusts and active ETFs including commentary, investment views and ratings. We have coverage across a number of sectors and investing strategies and provide insight into performance, discounts and premiums... Show More

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13 LICs at a discount

Peter Rae

In its latest LMI Monthly Update Independent Investment Research discusses why LICs trade at a discount to NTA and highlights 13 LICs trading a discount of more than 5% to pre-tax NTA. It discusses some of the reasons LICs trade at a discount and looks at some potential catalysts for... Show More

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12-month LIC returns remain positive despite falls in March quarter

Peter Rae

In its latest Monthly LMI Update, Independent Investment Research takes a look at listed managed investment returns for the past quarter and 12 months and highlights the best performing LICs/LITs over the past five years. We also highlight the five largest discounts and premiums to pre-tax NTA and take a... Show More

Wilson Asset Management enters the global equities arena

Peter Rae

Wilson Asset Management has launched the offer for its new global listed investment company, WAM Global Limited. The LIC will invest in a portfolio of international equities utilising its proprietary Research-Driven and Market-Driven stock selection processes. Whilst Wilson Asset Management does not have a track record in global equities, WAM... Show More

10 high yield LICs

Peter Rae

In its latest LMI Monthly Update, Independent Investment Research takes a look at the recent listed investment company reporting season which saw a majority of LICs report higher earnings and many pay higher dividends to their shareholders. We also highlight the top 10 yielding LICs under our coverage and discuss... Show More

MCP Master Income Trust: A focus on fixed income

Peter Rae

Independent Investment Research has initiated coverage of MCP Master Income Trust (ASX:MXT), a listed investment trust that invests in a diversified portfolio of loans to Australian companies. It does so through investments in several wholesale funds managed by Metrics Credit Partners (MCP), an Australian debt-specialist fund manager with significant direct... Show More

Listed Managed Investments: Quarterly Review

Peter Rae

In its latest Quarterly LMI Market Review, Independent Investment Research (IIR) provides detailed coverage of 43 listed investment companies, listed investment trusts and exchange traded managed funds including commentary, investment views and ratings. We have coverage across a number of sectors and investing strategies and provide insight into performance, discounts... Show More

Antipodes Global Investment Company: A LIC with a well-managed portfolio of global equities

Peter Rae

Independent Investment Research has initiated coverage of Antipodes Global Investment Company (ASX:APL) a listed investment company that invests in a relatively concentrated long/short portfolio of global equities. Many domestic investors exhibit a home country bias, with Australian investor preferences often biased towards products and services that depend substantially on the... Show More

Listed managed investments: 2017 in review

Peter Rae

2017 was a good year for global equity markets and this was reflected in the performance of listed managed investments, with those focused on international equities delivering the best returns. With global markets now displaying greater volatility and some major falls over the past week, performance of individual LMIs in... Show More

Plato Income Maximiser: A LIC that pays monthly dividends

Peter Rae

Plato Income Maximiser (ASX:PL8) is a listed investment company that aims to provide investors with regular income by investing in a portfolio of Australian large and mid-cap equities. PL8 was listed in May 2017, but the underlying Plato Fund, managed by Plato Investment Management, has a six year track-record. Over... Show More

Listed Managed Investments: Quarterly Review

Peter Rae

In its latest Quarterly LMI Market Review, Independent Investment Research (IIR) provides detailed coverage of 42 listed investment companies, listed investment trusts and Active ETFs including commentary, investment views and ratings. We look across a number of sectors and investing strategies and provide insight into performance, discounts and premiums to... Show More

A big year for LICs

Peter Rae

2017 was an exceptional year for new listed investment company and listed investment trust raisings, with 14 new entities raising a total of $4.2bn via initial public offers. This significantly exceeded the funds raised by new LIC/LIT offers in the previous two years and lifted the total number of LICs... Show More

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International LICs Performing Strongly

Peter Rae

In its latest Monthly Listed Managed Investments Update, Independent Investment Research looks at the performance of listed investment companies and listed investment trust for the 12 months to 30 September 2017 and found that LICs with an international focus were the best performers, with one LIC delivering a portfolio return... Show More

Ten high yielding LICs

Peter Rae

In its latest LMI Monthly Update, Independent Investment Research takes a look at the ten highest yielding listed investment companies in its coverage and also considers the sustainability of dividends. We also discuss and provide our views on some recent events within the LIC space. Refer to our report below... Show More

Listed Managed Investments: Quarterly Review

Peter Rae

In its latest Quarterly LMI Market Review, Independent Investment Research (IIR) provides detailed coverage of 39 listed investment companies, listed investment trusts and Active ETFs including commentary, investment views and ratings. We look across a number of sectors and investing strategies and provide insight into performance, discounts and premiums to... Show More

LIC Reporting Season Wrap – Dividends Hold Up

Peter Rae

For the reporting season just finished there were 24 listed investment companies covered by Independent Investment Research that reported full year results. Out of this 24, there were 14 LICs that experienced earnings declines. This reflected lower dividend income, particularly for those LICs that have capital account status, and also... Show More

Large cap LICs outperform small caps in FY17

Peter Rae

In its latest LMI Monthly Update, Independent Investment Research looks at the performance of the LIC sector over the 12 months to 30 June 2017. The Australian large cap share focused LICs benefited from solid market performance over that time with the five largest LICs delivering an average portfolio return... Show More

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BKI Investments offers exposure to a well-managed portfolio of Australian equities

Peter Rae

Independent Investment Research has initiated coverage of BKI Investments, one of the older style LICs that invests in a portfolio of Australian equities. It has an all market cap mandate although is heavily weighted to the ASX 50. Up until 2016, BKI was internally managed but is now managed by... Show More

Hi Tony, All the LIC's and LITs in the report are closed ended, but there are two Active ETFs in the report - K2 Australian Small Cap Fund (KSM) and Switzer Dividend Growth Fund (SWTZ). As ETFs, these funds are open-ended.

On Listed Managed Investments: Quarterly Review -

Hi Ben, Yes this is the latest quarterly report. Once all data has been released by the various LICs for the end of June, we will start preparing the June Quarter Report. Our latest monthly report (June) has just been published today. Regards, Peter.

On Listed Managed Investments: Quarterly Review -

Hi Chez, Thanks for your question. A subscale LIC trading at a large discount could most certainly be a target for a takeover and liquidation scenario. If the LIC is externally managed, liquidation might require co-operation of the manager, depending on management agreement arrangements. We have seen activists move in on underperforming and discounted LICs in the past. Regards Peter

On 13 LICs at a discount -

Hi Graeme, Thanks for you comment/question. I did submit a response to this question last time, albeit with a delay over the Christmas/New Year holiday. So, I'm sorry if you did not see this response. My comments were as follows: "The entities that are noted as “Not Rated” in our Monthly LMI Update are those entities that do not participate in our LIC research scheme but for which we simply provide base information. Importantly we do not have a view on these LICs and therefore there is no rating ascribed. Our LIC research rating scheme applies to those managers who participate in our quarterly rating process. For these participants we collect detailed data on a quarterly basis which underpins their rating. Where it is likely that we may rate an entity as Not Recommended, the Manager has the right to not go ahead with publication and to not participate in our research scheme. In such instances we notify ASIC. These entities will also appear in our tables as Not Rated." For you information, we have also introduced a new rating "Investment Grade" for entities that might not meet our requirements for a Recommended rating but we still consider worthy as an investment.. This hasn't been used yet but gives us an additional rating option. I hope the above helps. Peter

On 13 LICs at a discount -

Hi Graeme, Thanks for your question and our apologies for the delay in responding to you due to the Christmas/New Year break. The entities that are noted as “Not Rated” in our Monthly LMI Update are those entities that do not participate in our LIC research scheme but for which we simply provide base information. Importantly we do not have a view on these LICs and therefore there is no rating ascribed. Our LIC research rating scheme applies to those managers who participate in our quarterly rating process. For these participants we collect detailed data on a quarterly basis which underpins their rating. Where it is likely that we may rate an entity as Not Recommended, the Manager has the right to not go ahead with publication and to not participate in our research scheme. In such instances we notify ASIC. These entities will also appear in our tables as Not Rated. I hope this answers your question.

On A big year for LICs -