Underwood Capital Limited (ASX: UWC) is an Australian-listed specialist investment company which concentrates on producing capital growth for shareholders over the medium term from investments in listed and unlisted equities and debt securities.
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.
AUI is a Listed Investment Company whose shares are listed on the Australian Stock Exchange (ASX). The Company seeks to provide income and capital appreciation over the longer term to its shareholders through a portfolio of securities predominantly comprising shares of companies listed on the ASX.
Bentley Capital Limited is a strategic investment company listed on the Australian Securities Exchange.
Clime Capital Limited is a long established listed investment company (LIC) that offers investors the opportunity to acquire shares in quality Australian companies.
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.
NCC aims to provide investors with a long-term concentrated exposure to Australian public and private emerging companies (excluding resource companies).
An ASX-listed investment company, PMC offers investors an easy and convenient means of accessing an actively managed, truly diversified portfolio of companies from around the world and across industry sectors, providing exposure to undervalued businesses in both developed and emerging markets.
Pengana International Equities Limited is a Listed Investment Company that exists to provide shareholders with capital growth and regular, reliable fully franked dividends.
WAM Active provides investors with exposure to an active trading style with the aim of achieving a sound return with a low correlation to traditional markets. WAM Active’s investment objectives are to deliver a regular income stream via fully franked dividends, provide a positive return with low volatility, after fees, over most periods of time, and to preserve capital.
VG1 provides investors with access to a concentrated portfolio, comprising long investments and short positions in global listed securities. VG1 will typically invest in 20-40 long investments.
WAM Leaders provides investors with exposure to an active investment process focused on identifying large-cap companies with compelling fundamentals, a robust macroeconomic thematic and a catalyst.
The objective of GC1 is to provide investors with exposure to a portfolio of smaller companies and to do this through a dedicated specialist small companies investment manager.
NGE Capital offers investors exposure to an actively managed, concentrated portfolio of high conviction investments.
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
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.
