A Listed Investment Company (LIC) operates like a managed fund but instead of buying units you buy shares in the LIC on the stock exchange. The LIC invests in a range of other companies so with one purchase you can immediately diversify your investments.

 

Learn & Connect Investor Resources DIY or use an adviser? What about a Listed Investment Company (LIC)?

LICs generally operate with relatively low management expense ratios so they can be a reasonably cost effective way to invest. Another similar type of investment is a Listed Investment Trust (LIT).

An introduction to LICs

  • A beginners guide to analysis and valuation of LICs from the analysts at Investsmart.

Benefits of LICs

Invest in the investor!

  • LICs are a way of getting exposure to a broader range of assets in a single transaction. Check out some basic information from Moneysmart.

Buying Listed Investment Companies (LICs)

LIC reports and updates

  • Another source of reports on LICs and LMIs provided by Bell Potter Securities and Independent Investment Research: Weekly indicative NTA’s, quarterly reports and monthly updates.

How are LICs performing?

  • Before you purchase an LIC it is recommended that you consider their performance.  Morningstar produces a monthly LIC report to help your research.

Checklist for buying LICs at a discount

  • LICs can trade at a discount to their net tangible asset (NTA) values. This article from Cuffelinks explores the reasons why and what you should consider before buying an LIC at a discount.

Major weaknesses of LICs & managed funds

  • Both LICs and managed funds have strengths and weaknesses in different markets.  Check out the analysis from Graham Hand at Cuffelinks as he compares the two.

10 things LIC investors need to consider

Listed Investment Companies and Trusts

What makes Exchange Traded Funds (ETFs) different from LICs

  • ETFs and LICs have much to offer but there are traps for the unwary. This Morningstar article explores how they differ and points out a few of the pitfalls.