Listed Investment Companies (LICs) are a viable and well established alternative to the managed fund and in fact have some considerable advantages when compared to managed funds.
LICs are a great way to achieve market diversification or invest conservatively for those investors without the expertise or inclination to invest directly in other ASX listed companies.
LICs are a subset of what the ASX calls listed managed investments. They enable an investor to invest in a diverse and professionally managed portfolio of assets which can include shares, property and interest bearing deposits.
LICs in Australia primarily invest in Australian or international shares and offer investors exposure to the same universe of assets that can be accessed through many unlisted managed funds.
LICs are bought and sold on the market just like an ordinary share and investors can decide whether the investment style and underlying investment portfolio of a particular LIC suits their own investment objectives.
Ellerston Capital have two ASX listed LICs as below: