Tag: ASIC review LICs performance reporting

LIC Investing – 10 factors to check before buying.

A checklist for buying ASX Listed Investment Companies (LICs)

A list of 10 factors to check as a guide when to buy, scroll down for further explanations on each.

1) Discount / Premium to NTA

2) Management Expenses and ALL other costs

3) Performance Track Record

4) Investment Style

5) Alignment of management’s interest with shareholders

6) Ownership Structure

7) Investment Management Agreement (IMA)

8) Size of the LIC

9) Future Dividend Capacity

10) Marketing / Reporting of the LIC

When I look back at my investing mistakes, one common theme is rushing into a new purchase. I find I have usually done better when a number of months pass until I begin accumulating a position in a new idea.

When investing in LICs I try to make sure I have considered numerous factors first. That helps me avoid getting itchy fingers and hitting the buy button quickly. Continue reading “LIC Investing – 10 factors to check before buying.”

SHOULD I INVEST IN ASX LICs VS MANAGED FUNDS?

I often mention to other investors that looking for opportunities in the ASX Listed Investment Company (LIC) sector has been a significant part of my strategy.

A reaction I have had on several occasions from them is to bring up an example of a LIC boasting great performance figures.

Continue reading “SHOULD I INVEST IN ASX LICs VS MANAGED FUNDS?”