LICs

Spheria has provided an update on the LIC’s share buyback while Metrics Credit Partners Diversified Australian Senior Loan Fund has been upgraded from BBB+ to A- by S&P Global Ratings.

Analysing portfolio weighting towards cash of LIC/LITs in the past 3 months provides an insight into how different Manager’s views towards the market have rapidly changed.

The sell-off has increased yields across LIC/LITs. Compared to open-end trusts, LICs can retain earnings over reporting periods which allows for a smoother distribution of dividends.

Unlike managed funds and ETFs, LICs have the ability to retain earnings and franking credits across volatile periods to enable a sustainable, growing level of dividends over the long-term.

Blue Sky Alternatives Access Fund has announced that all the key commercial terms for a change of manager to Wilson Asset Management have been met.

Focusing solely on performance data as at a specific point in time can lead to a time period bias in analysis. This is particularly apparent in LIC/LITs.

Bell Potter analyst William Gormly updates developments in Australia’s listed investment company market and provides comparative data.

Bell Potter analyst William Gormly updates developments in Australia’s listed investment company market and provides comparative data.

The top-performing LIC/LIT in November was Ellerston Global Investments Limited (EGI) which provided shareholders with a 10.9% return.

Bell Potter analyst William Gormly updates developments in Australia’s listed investment company market and provides comparative data.

The Listed Managed Investment (LMI) Indicative NTA Report tracks the indicative movement of a LMIs pre-tax NTA throughout the month by monitoring the movements in the disclosed holdings and using an index to track the movement of the remainder of the portfolio.

The Listed Managed Investment (LMI) Indicative NTA Report tracks the indicative movement of a LMIs pre-tax NTA throughout the month by monitoring the movements in the disclosed holdings and using an index to track the movement of the remainder of the portfolio.

Bell Potter’s Indicative NTA tracks the ‘indicative’ movement of a LIC’s underlying NTA each month by monitoring the percentage movements of the disclosed holdings and using an index to track the movement of the remaining positions.

The coverage of LIC/LITs in the report has increased to 70 securities, which now represents approximately 95% of the total market capitalisation of the sector.

LICs that have provided unsatisfactory returns and trading at substantial discounts to NTA have been under scrutiny recently, and in many cases the scrutiny has been more than justified.

Independent Investment Research updates developments in Australia’s listed investment company market and provides comparative data.

The Listed Managed Investment (LMI) Indicative NTA Report tracks the indicative movement of a LMIs pre-tax NTA throughout the month by monitoring the movements in the disclosed holdings and using an index to track the movement of the remainder of the portfolio.

FY2019 will be associated with one word when market participants look back, and that is volatility. Bookended by relatively benign first and last quarters, the second and third quarters of FY19 took both domestic and international asset managers on a proverbial roller coaster ride.

Through April and May we have seen three more listed managed investment vehicles (LMIs) start trading on the ASX including two fixed income-focused listed investment trusts (LITs), Perpetual Credit Income Trust (ASX:PCI) and MCP Wholesale Income Opportunities Trust (ASX:MOT).

The Listed Managed Investment (LMI) Indicative NTA Report tracks the indicative movement of a LMIs pre-tax NTA throughout the month by monitoring the movements in the disclosed holdings and using an index to track the movement of the remainder of the portfolio

Whilst the LMI sector has generally delivered good returns over the past 12 months, there remain a number of uncertainties that could affect global market returns in coming months including the US/ China trade tensions, Brexit and general expectations for lower global growth.

Reporting season has just ended and so we take a look at how the listed investment companies under our coverage fared over that time.