Australian large cap LICs down
Australian large cap-focused listed investment companies (LICs) have underperformed over the past 12 months due to underweight positions in resources, however their long-term value looks good, according to Independent Investment Research (IIR).
The IIR study found that the five largest Australian large-cap focused LICs’ average portfolio return stood at eight per cent for the 12 months to 30 September, which was below the S&P/ASX 200 Accumulation Index return of 9.2 per cent.
At the same time, IIR expected that these LICs would perform broad in line with the market over the longer-term.
The company identified Diversified United Investment (DUI) as the top performer large-cap focused LIC, with a portfolio return of 13.5 per cent.
According to IIR, DUI also offered “a good entry point for investors looking for exposure to a diversified portfolio of Australian large-caps shares,” although it had a small exposure to international shares as well as Australian small caps.
The study also found that the best performing LICs for the past 12 months to 30 September were those with an international focus reflecting the strong performance of international equity markets.
The top four performers were:
- LICs were PM Capital Global Opportunities Fund (30.4 per cent up),
- MFF Capital Investments (22.5 per cent up),
- PM Capital Asian Opportunities Fund (22.2 per cent up) and
- Platinum Capital (20.7 per cent up).
Recommended for you
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
Following yesterday’s news about First Sentier Investors closing four investment teams, a second global asset manager has announced it is closing its only dedicated Australian fund.
