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 & LITs on the ASX to 105 by the end of November 2017. In its latest LMI Update, Independent Investment Research reviews the activity of the past year and takes a look at potential activity in 2018 and finds that there are likely to be more international offerings and sees opportunity for new LICs/LITs in the small-cap space.


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Graeme Holbeach

All the LICs /LITs on the list appear to be either Not Rated or are Recommended, Recommended+ or Highly Recommended. What about those that were rated but not recommended? Or does Not Rated cover both those you didn't look at and those you didn't 'like'?

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Peter Rae

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.

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