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 (pre-tax NTA plus dividends) of 11.5%. While this is below the S&P/ASX 200 Accumulation Index return of 14.1%, it largely reflects underweight positions in resources. While the small cap sector of the market underperformed large caps, one listed investment trust, Forager Australian Shares Fund, delivered a massive 25.2% portfolio return for the 12 months. See our full report for more details. (VIEW LINK)


Peter Rae

Peter has 35 years’ experience in the banking and finance industry, including 15 years as an equities analyst. Peter was a sector head in the equities research team at Morningstar with a focus on consumer and industrial companies.

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Michael Whelan

There is now a smorgasboard of LICs to choose from ! If you line up the 'Top 20' investments of the larger LICs, the 'Top 10' are by&large the same and the 'Next 10' have many overlaps. Getting a read on the premium / discount vis-à-vis performance is difficult, if not impossible !

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