LICs

Bell Potter analyst William Gormly updates developments in Australia’s listed investment company market and highlights Future Generation Global which has traded at an average discount wider than 20% this calendar year.

Bell Potter analyst William Gormly updates developments in Australia’s listed investment company market where Clime Capital has announced a 16% YoY cut to the fully franked June quarter dividend.

Bell Potter analyst William Gormly updates developments in Australia’s listed investment company market where Adelaide-based Lanyon Asset Management has taken aim at Contango Income Generator Limited.

Bell Potter analyst William Gormly updates developments in Australia’s listed investment company market where MFF Capital Investments appears well-positioned with approximately $750m of cash in the portfolio.

Bell Potter analyst William Gormly updates developments in Australia’s listed investment company market where 5 LITs have maintained a strong level of income amidst the recent months of volatility.

Will Gormly updates developments in Australia’s LIC market where Whitefield Limited (WHF) has reported a year-on-year (YoY) decrease in investment revenue and net profit of 2.6% and 9.0%, respectively.

Will Gormly updates developments in Australia’s LIC market where Pengana International Equities Limited (PIA) has provided an update to the market that it is well placed to deliver a fully franked final dividend later in the calendar year.

Information Technology (IT) and Health Care have been two of the top-performing global sectors in 2020 so far, showing greater resilience amidst the global equity sell-off in the first quarter.

Will Gormly updates developments in Australia’s LIC market where net cash as a percentage of investment assets and net cash in MFF Capital Investments Limited (MFF) has increased to 33.9%.

Will Gormly updates developments in Australia’s LIC market where VGI Partners has delivered a strong March result with a pre-tax NTA and share price return of 1.4% and 2.7%, respectively.

Bell Potter analyst William Gormly updates developments in Australia’s listed investment company market where there are four WAM LICs that have upcoming fully-franked dividends payable that offer an attractive yield.

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.