The following table coming up captures the performance of many of the most popular ASX Listed Investment Companies (LICs) for the financial year of 2022.
When ASX LICs provide their own performance reporting within their ASX announcements, there is a range of ways they may choose to calculate such numbers. They could in theory leave out certain factors.
For example, they could choose to display the numbers before investment management base and performance fees, directors’ fees and many other costs associated with keeping an ASX listing. They could remove the effect of dilutive capital raisings. They could choose to ignore the negative share price impacts of the discount widening to the NTA. There are many examples where ASX LICs simply choose not to display their performance numbers at all.
PROBLEMS WITH ASX LIC PERFORMANCE REPORTING
Without spending too much time in this particular blog post in going down the rabbit hole of ASX LIC performance reporting, I thought it is easier to link to a couple of previous articles below. Therefore those that wish to drill down and explore that area, refer to the below posts in previous years.
Playing Games with LIC Performance Reporting. – Value Investing for a living
SHOULD I INVEST IN ASX LICs VS MANAGED FUNDS? – Value Investing for a living
ARE ASX LICs A GOOD INVESTMENT?
They still could be a good investment vehicle to use, I make no comment on that. You will see from the table coming up there are many that achieved good returns for financial year 2022. There are also some very poor numbers, one year is not enough time to make a complete judgement on.
The objective here is to provide a performance table of many of the popular ASX LICs and be clear what it represents. This will show shareholder returns simply from where the share price began the financial year and where it finished on June 30, 2022. It will also include dividends, which the Sharesight platform I used grosses up returns with the value of franking credits.
ASX LICs vs ETFs PERFORMANCE COMPARISON 2022
If you consider that somewhat flattering (in regards to including some franking benefits), note I have provided examples in the table of a couple of popular ETFs with the same methodology for consistency with any comparisons.
I also included in the list popular ETFs. These are Vanguard Australian Shares Index ETF (ASX:VAS) & Vanguard MSCI Index International Shares ETF (ASX:VGS).
WHY BOTHER POSTING THIS ASX LIC PERFORMANCE TABLE FOR FY 2022?
One year is way too short to draw conclusions. The point of this is just to see what the performance facts show in the one place, as it is not so easy to come across such information. That is due to the flexibility I mentioned earlier about there being no common regulated performance standards for ASX Listed Investment Companies (LICs). Something to be wary about.
ASX LIC PERFORMANCE COMPARISON 2023
I may one day in the future do a similar table trying to examine more longer-term numbers. It was a tough time for stock market investors in the financial year 2022. Perhaps by FY 2023 it might be a better snapshot in time to take a look at some longer-term numbers.
UNDERVALUED ASX STOCKS 2023
Another reason I thought a simple table like this might be interesting, is that some investors like to start their searches for undervalued stocks by seeing what stocks have been poor over the last year. There is more than a few in that camp in the table as you will see further down.
SHARESIGHT REVIEW OF ASX LICs FY 2022
Also whilst sharesight* does a great job in producing the numbers, it does require my input initially, please be open to the possibility of errors! Another reason not to draw conclusions here and rely on this to make any decisions!
BEST ASX LISTED INVESTMENT COMPANIES (LICs) 2022
So which ASX LICs performed best in FY 2022?
The following table coming up captures the performance of many of the most popular ASX Listed Investment Companies (LICs) for the financial year of 2022.
To not make the task overly onerous, I simply looked up all ASX LICs in the equity space from a list in May and used those above $500 million. The table shows the shareholder returns for financial year 2022.
ASX LIC PERFORMANCE COMPARISON FY 2022
| ASX TICKER | ASX SECURITY NAME | 1 yr Total Return % |
|---|---|---|
| AFI | Australian Foundation Invest Comp | +0.42% |
| ARG | Argo Investments Limited | +3.34% |
| AUI | Australian United Investment Company | -2.62% |
| BKI | BKI Investment Company Ltd | +8.64% |
| CIN | Carlton Investments | -1.68% |
| DUI | Diversified United | -7.10% |
| FGX | Future Generation Investment Company | -11.22% |
| HM1 | Hearts And Minds | -48.78% |
| LSF | L1 Long Short Fund | +4.72% |
| MGF | Magellan Global Fund | -21.92% |
| MIR | Mirrabooka Invest. | -13.13% |
| OPH | Ophir High Cf | -36.42% |
| PGF | Pm Capital Fund | +4.58% |
| RF1 | Regal Invest Fund | -29.81% |
| VAS | Vanguard Australian Shares Index ETF | -4.72% |
| VG1 | VGI Partners Global | -34.17% |
| VGS | Vanguard MSCI Index Intl. Shares ETF | -6.43% |
| WAM | WAM Capital Limited | -11.35% |
| WGB | WAM Global Limited | -29.77% |
| WHF | Whitefield Ltd | -14.47% |
| WLE | WAM Leaders Limited | -1.44% |
P.S.
(You may notice, assuming I have changed the blog settings correctly, that this blog post does not have a comments area. Apologies if that is a little annoying, but you can thank ASIC 😊 if I keep it this way).
* For those that like to perform their own sort of analysis like this using Sharesight, you can click on my affiliate link banner just below. There is a free level of membership to sign up to experiment with one portfolio initially of up to 10 holdings. Should one wish to purchase an annual premium plan using this link, you effectively save 4 months’ worth.
UPDATED FOR 2023
Keep reading down to the link below for updated data on 2023 ASX LICs vs ETFs posted a couple of days prior to 2023.
Which is better ETF or LIC in 2023?
As I hinted at in the blog post above, I also wanted to do a similar ASX LIC COMPARISON VS ETFs for 2023 on a longer-term basis. Checkout the below link for my update:
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