3 top picks in LICs
![](https://assets.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBcUlLIiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--4196e7f513ce542baca126fc19850f175cfc3ef5/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJY0c1bkJqb0dSVlE2RTNKbGMybDZaVjkwYjE5bWFXeHNXd2RwQWNocEFjZz0iLCJleHAiOm51bGwsInB1ciI6InZhcmlhdGlvbiJ9fQ==--c306068f01ab83c3650795f1865f4e6da1f93433/Screen_Shot_2019-03-12_at_11.14.34_am.png)
Bell Potter Securities
ASX Listed Investment Companies (LICs) and Listed Investment Trusts (LITs) grew 6.7% in size to $45.1bn over the June 2019 quarter. The 60 securities covered within this report collectively returned 3.0% (incl. net dividends) for the quarter, whilst making up 92.7% of the total sector based on market capitalisation.
There were 4 new listings, all LITs, which added over $1.2bn in new capital. The largest IPO was Perpetual Credit Income Trust (PCI) which raised $440m in April to implement an actively managed portfolio of domestic and global credit and fixed income assets that targets a distribution of the RBA Cash Rate + 3.25% p.a. (net of fees).
![](https://dpsi7pmz5b6vt.cloudfront.net/uploads/media/15845/Screen_Shot_2019-08-29_at_11.23.32_am.png)
$674m was raised in secondary offerings, $47m from option exercises and $19m in Dividend Reinvestment Plans. MCP Master Income Trust (MXT) successfully raised over $545m via an Entitlement Offer and Placement, taking the total market capitalisation to over $1.3bn.
![](https://dpsi7pmz5b6vt.cloudfront.net/uploads/media/15846/Screen_Shot_2019-08-29_at_11.24.57_am.png)
The top performing LIC/LIT was URB Investments Limited (URB) with a market return of 14.8%, compared to a pre-tax NTA return of 3.6%.
Uncertainty in the sector rose leading into the Federal Election in mid-May, resulted in a widening of share price discounts to NTA and large divergences between market returns and that of the underlying portfolios.
![](https://dpsi7pmz5b6vt.cloudfront.net/uploads/media/15847/Screen_Shot_2019-08-29_at_11.27.39_am.png)
In our 88-page quarterly report, we review the sector, provide a one-page summary on each LIC that we cover, and also nominate our top three picks. Access the report here.
10 stocks mentioned
![William Gormly](https://assets.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBcUlLIiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--4196e7f513ce542baca126fc19850f175cfc3ef5/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJY0c1bkJqb0dSVlE2RTNKbGMybDZaVjkwYjE5bWFXeHNXd2RwQWNocEFjZz0iLCJleHAiOm51bGwsInB1ciI6InZhcmlhdGlvbiJ9fQ==--c306068f01ab83c3650795f1865f4e6da1f93433/Screen_Shot_2019-03-12_at_11.14.34_am.png)
Will provides comprehensive coverage of the ETF and LIC sectors, producing a range of highly regarded reports covering investment fundamentals, asset class structure and cost, and the role of managed investments in portfolios.
Expertise
![William Gormly](https://assets.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBcUlLIiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--4196e7f513ce542baca126fc19850f175cfc3ef5/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJY0c1bkJqb0dSVlE2RTNKbGMybDZaVjkwYjE5bWFXeHNXd2RwQWNocEFjZz0iLCJleHAiOm51bGwsInB1ciI6InZhcmlhdGlvbiJ9fQ==--c306068f01ab83c3650795f1865f4e6da1f93433/Screen_Shot_2019-03-12_at_11.14.34_am.png)
Will provides comprehensive coverage of the ETF and LIC sectors, producing a range of highly regarded reports covering investment fundamentals, asset class structure and cost, and the role of managed investments in portfolios.