Argo Investments is one of Australia's oldest and largest listed investment companies (LICs). Offering investors low-cost, conservative and diversified exposure to Australian listed companies.
Hearts and Minds Investments Limited (HM1) is a listed investment company that invests in a high-conviction global equities portfolio, based on ideas from a select group of leading fund managers.
Pengana International Equities Limited is a Listed Investment Company that exists to provide shareholders with capital growth and regular, reliable fully franked dividends.
BKI aims to generate an increasing income stream for distribution to shareholders in the form of fully franked dividends through long term investment in a portfolio of assets that are also able to deliver long term capital growth to shareholders.
Excelsior Capital Limited, (‘ASX:ECL’ or ‘Excelsior’) (previously known as CMI Limited), is a Listed Investment Company (LIC) that has been listed on the Australian Stock Exchange since 1993. Its investment strategy is quite dynamic, focusing on a mix of acquisitions, direct investments, and managed investment schemes aimed at achieving high compound returns with capital stability , low volatility at minimal correlation to risk assets such as equities and bonds.
WAM Microcap provides investors access to a portfolio of undervalued micro-cap growth companies with a market capitalisation of less than $300 million at the time of acquisition. WAM Microcap also provides exposure to relative value arbitrage and market mispricing opportunities.
Thorney Technologies Ltd [TEK] is an ASX-listed investment company (LIC), with a broad mandate to invest in technology-related investments at all phases of the investment lifecycle. TEK seeks to identify early stage companies with new and disruptive technology and business models, and invests in a broad range of areas of technology, such as fin-tech, e-commerce, education, agriculture, medical, telecommunication, robotics and AI.
The Gryphon Capital Income Trust (ASX Code: GCI) is a listed trust designed to provide investors with sustainable, monthly income (Target Return equal to RBA Cash Rate +3.50% pa) through exposure to the Australian Securitisation market.
The Ophir High Conviction Fund is accessible via the ASX and is a concentrated long only, small and mid cap Australian equities fund. The Ophir High Conviction Fund focuses on identifying high quality businesses exposed to structural growth opportunities. With a bias toward cash generative businesses with sound balance sheets and highly capable management teams, the Fund seeks to identify these opportunities early in a company’s life cycle, when it is typically under-researched and under-valued by the investment market.
Clime Capital Limited is a long established listed investment company (LIC) that offers investors the opportunity to acquire shares in quality Australian companies.
WAM Capital provides investors with exposure to an actively managed diversified portfolio of undervalued growth companies listed on the Australian Securities Exchange, with a focus on small-to-medium sized businesses. WAM Capital also provides exposure to relative value arbitrage and market mispricing opportunities.
The KKR Credit Income Fund aims to provide Australian and New Zealand investors with attractive, risk-adjusted returns and access to a diversified portfolio of income generating alternative credit investments
The PM Capital Global Opportunities Fund Limited provides investors with an opportunity to invest in global equities via an Australian Securities Exchange (ASX) listed investment company. The company began trading on the ASX on 12 December 2013. The Company’s investment objective is to provide long-term capital growth over a seven-year plus investment horizon through investment in a concentrated portfolio of undervalued global (including Australian) equities and other investment securities.
Future Generation Australia (ASX: FGX) is a listed investment company that aims to deliver a combination of income and capital growth over the medium-to-long term by investing in Australian equities.
Enhanced fully franked income from Australian equities
Listed Investment Companies (LICs) are publicly traded companies that invest in a diversified portfolio of assets, aiming to provide shareholders with capital growth and/or income.
LICs offer an alternative investment vehicle for individuals seeking to access managed investments which are traded on a stock exchange.
LICs are companies that pool investor capital to invest in a range of assets, including equities, fixed income, and property.
Unlike traditional managed funds, LICs are structured as companies, and they listed on stock exchanges which allows investors to buy or sell their shares in real-time.
Each LIC typically has an investment mandate that outlines its investment strategy, risk profile, and target sector.
There are several types of LICs, including:
There are three main features of LICs:
There are three main risks of LIC investing:
When comparing LICs, investors should consider:
Investors can invest in LICs through:
LICs are managed like companies and trade on exchanges whereas ETFs are typically passive funds that track indices.
Yes. LICs can be bought and sold through standard brokerage accounts.
Yes. Many LICs focus on long-term capital growth and dividend income.
Dividends from LICs are typically taxed as income, and franking credits may apply depending on residency.
This represents the difference between a LIC’s market price and the NAV of the LIC’s assets.
Buying LICs at a discount to NAV can sometimes be a lucrative investment strategy.
Dividends are usually paid semi-annually or annually, but this varies by LIC.
Yes. LICs are regulated under corporate law and must adhere to the relevant disclosure and reporting requirements.
Some LICs may use leverage to enhance returns, but this also increases risk.
LICs represent a valuable asset class for investors seeking a combination of diversification, professional management, and potential income generation.
By understanding their structure, types, features, and associated risks, investors can make informed decisions.
Careful comparison and consideration of investment strategies are crucial for investors aiming to use LICs to maximize their returns.
