Australian large cap share focused LICs continue to underperform the broader market with an average portfolio return of 2.3% for this sector over the 12 months to 31 October 2016.
This reflects the underperformance of large cap stocks, with the S&P/ASX Accumulation Index up 4.4% over the same period. However, mid/smallcap focused LICs delivered an average portfolio return of 11.9% over this time compared to the Small Ordinaries Accumulation Index return of 14.9%.
The overall sector return was dragged down by a couple of outliers that delivered negative returns, however, a number of LICs delivered returns in excess of 20%.
In the latest Independent Investment Research Monthly Update, we highlight the top five performing LICs within our coverage for the 12 months to 31 October 2016. All were small cap focused.
Access the full report here.
