Reflecting the performance of the small cap index, small cap focused LMIs generated stronger gains than large cap focused LMIs over the 12 months. The average return from our mid-small cap LMI coverage universe for the 12 months to 30 June 2018 was 13.9%.
Many of the large cap focused LICs are deliberately underweight resources and have strong exposure to the high yield major banks, which have underperformed. It is worth noting that the S&P/ASX 200 Industrials Accumulation Index, which excludes resources companies, was up only 7.8% for the 12 months.
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