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Friday, 26 Jul 2019
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Listed Investment Companies

Listed Investment Companies, known as LICs, are effectively a managed fund with the main difference being that they are traded on the ASX like a share instead of being unlisted and traded through the fund manager’s administration system. So for one trade, on the ASX, through an LIC, you can buy a portfolio of shares and invest in the skills (or otherwise) of an active fund manager.

The other thing you need to know about LICs is that although the underlying portfolio of shares might be worth $100 million, called the NTA – or the Net Tangible Asset value of all the shares that are held in the fund (which is easy to calculate), the share price of the listed LIC can trade below or above the NTA depending on whether people think the fund manager is good or bad.


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