Listed Investment Companies
January 2016
Opportunity to invest in a diversified equity exposure Page 2
What are Listed Investment Companies (LICs)? Page 2
Choosing a Listed Investment Company Page 3
Advantages of investing in LICs Page 4
Risks and Considerations of investing in LICs Page 4
ASX LICs Monthly Update Page 5
Net Tangible Asset (NTA) comparison Page 6
Annualised LIC share price performance Page 7
Dividend focus Page 8
Recent and upcoming distributions Page 9
Premium/Discount to NTA (%) history Page 10
Glossary Page 12
Appendix Page 14
Total returns Page 14
Dividends Page 15
Liquidity analysis Page 16
Snapshots Page 17
Disclaimer Page 39
Opportunity to invest in a diversified equity exposure
What are Listed Investment Companies (LICs)?
LICs are companies, listed on the ASX, which manage a portfolio of assets on behalf of their investors.
By owning shares in LICs, investors are able to gain exposure to diversified portfolios that are managed
by investment professionals. LICs are closed-end funds where shareholders join or leave the investment
by buying or selling the LIC shares on the ASX. The resulting stable funds under management (FUM)
allow the manager to make decisions on a long term basis. A number of LICs strive to pay stable fully
franked dividends (although dividends are set at the discretion of the manager with respect to profitability
and solvency of the company) which may satisfy investors desire for tax effective income. The investment
manager may be internal or external to the LIC.
The investment styles of LICs can be classified into three broad categories:
Australian shares invest principally in ASX-listed shares
International shares invest principally in shares listed on international stock exchanges
Absolute / specialist LICs include long/short equities, absolute return strategies, fund of fund
vehicles, private equity, unlisted assets and multi-asset strategies.
Investment approaches vary and can range from conservative to aggressive. When deciding whether or
not to invest in a LIC, investors should consider whether the structure, investment style and underlying
portfolio suit their personal investment objectives.
The ASX-listed LICs sector has expanded from A$ 24.1 billion in January 2014 to A$ 30.1 billion in
December 2015. Recent market weakness has seen this total retrace to A$28.9 billion in mid January.
The second chart below shows the monthly proportionate value traded for LICs with a trend towards
international equities. The recent shift to alternatives can be partly attributed to the buy-back and winding
up of Global Resource Masters Fund Limited (GRF) and the December 2015 listing of Absolute Equity
Performance Fund Limited (AEG) which saw elevated interest following a positive debut.
Listed Investment Companies market capitalisation Trends
Source: MWM Research, Iress, Morningstar, January 2016
Monthly value traded
Source: IRESS, January 2016
20
25
30
Feb
-14
Mar-
14
Ap
r-1
4
May-
14
Ju
n-1
4
Ju
l-1
4
Au
g-1
4
Sep
-14
Oct-
14
No
v-1
4
Dec-1
4
Jan
-15
Feb
-15
Mar-
15
Ap
r-1
5
May-
15
Ju
n-1
5
Ju
l-1
5
Au
g-1
5
Sep
-15
Oct-
15
No
v-1
5
Dec-1
5
Jan
-16
A$ billionTotal Market cap for LICs
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15
Australian Equities
Alternatives / Specialist
International Equities
54%
4%1%
26%
20%
95%
Page 2 of 39
Choosing a Listed Investment Company (LIC)
Net Tangible Asset Backing (NTA)
LICs report net tangible asset backing (NTA) for the company on a monthly basis. The NTA is the market
valuation of the underlying investments and is reported on a pre-tax basis and post-tax basis (where the
capital gains tax obligation of liquidating all holdings is taken into account). As LICs are closed-end funds
they may trade at, above or below the most recent NTA valuation due to liquidity risk and investor
sentiment. Increasingly, LICs are reporting NTA on a more frequent basis (weekly or even daily) to
provide more up to date information to investors.
Management and performance fees
LICs incur a fee for management of the portfolio, which is paid out of FUM. The management fee is also
referred to as the management expense ratio (MER). It normally ranges between 0.1% and 1.5% of FUM,
with larger LICs incurring MER at the low end of the range as they are able to spread their fixed costs
over a greater FUM. A performance fee may also be incurred, calculated with reference to the
performance of the portfolio against a benchmark and paid to the investment manager in accordance
with the investment management contract.
Larger LICs benefit from scale (lower fees)
Source: IRESS, January 2016
Company/management risk
The LIC investor takes on the risk and performance of the underlying investments, as well as the risk of
the LIC as an operating entity. The NTA only takes into account the value of the investments at a fixed
date. Assessments of the competency of management and desirability of the investment strategy of the
LIC may lead investors to apply a premium or discount to the existing portfolio.
Liquidity risk
LICs are not typically highly liquid, though the underlying investments may be. This mismatch in liquidity
may lead to investors preferring to purchase a LIC at a discount to NTA. Unlike ETFs, contracted market
makers are not appointed to provide minimum spreads. See the appendix for average trading spreads.
Dividend timing
Dividends may be paid by the underlying investments through the year, while the LIC may pay semi-
annual or quarterly dividends. The NTA price may include the value of dividends that have been received
by the LIC and not yet paid out.
Expected change in value of underlying investments
The NTA is a valuation at a fixed point in time. If the market moves subsequent to this date, the LIC share
price may pre-empt the change to NTA. At times investment themes may lead to LICs trading at a price
that deviates from underlying value. For example when investors are pursuing yield, LICs which pay fully
franked dividends may trade at a higher premium to NTA than when negative investment environments
prevail.
0.0
0.5
1.0
1.5
2.0
2.5
3.0
0
2000
4000
6000
AFI
AR
G
MLT
WA
M
DJW
BK
I
CIN
AU
I
DU
I
CD
M
MIR
WH
F
PIC
WA
X
FG
X
AM
H
QV
E
CTN
WIC
WD
E
MFF
UR
F
PM
C
AG
F
PG
F
FG
G
TG
G
PA
I
HH
V
ALI
AU
F
EM
F
EA
I
EG
I
PA
F
ALF
BA
F
US
F
TO
P
AY
Z
GV
F
BTI
AY
D
GR
F
%A$ Mil
Market cap (LHS) Management expense ratio (RHS)
Australian equities International Equities Absolute / Specialist
Page 3 of 39
Advantages of investing in LICs
Low costs
The MER for most ASX-listed LICs ranges from 0.10% to 1.50% per annum. The MERs for the three
largest Australian equity LICs (AFI, ARG, MLT) are amongst the most competitively priced with all three
below 0.20% reflecting their larger scale. Many LICs do not charge performance fees. While LICs do not
charge exit fees (like managed funds), bid/offer spreads and brokerage do need to be accounted for.
Diversification
LICs may hold a large number of companies (50 to 100 stocks) in their portfolio, providing an efficient
means of diversification with the purchase of a single security.
Differentiation
The characteristics and strategies of LICs may suit different investor needs.
Transparency
LICs release portfolio updates to the ASX in order to meet their continuous disclosure obligations. The
majority of LICs publish their top holdings each month while all disclose their full portfolios in their
financial statements. The ASX publishes a monthly NTA report accessible via this link. Larger LICs
communicate regularly with their investors, holding investor seminars as well as annual general meetings.
Investor access
LICs can be traded during market trading times and there are no minimum investment amounts or
holding periods beyond those applied by the ASX to all listed securities.
Income
Investors can seek LICs that strive to pay stable, franked dividends. The three largest Australian equity
LICs have continually paid 100% franked dividends since 1995. Certain Australian resident taxpayers can
claim a tax benefit where a component of the dividend is sourced from realised eligible LIC capital gains.
Shareholders should consult their tax advisor.
Risks and Considerations of investing in LICs
Investment style
Investors need to review the characteristics of the underlying portfolio prior to investment to verify the
philosophy of the LIC.
Security may trade at prices higher or lower than NTA
LIC share prices may trade higher or lower than NTA. If an LIC is trading at a discount to NTA there is no
quick mechanism to close the gap (though sometimes other interested parties will try to have the
manager replaced or the venture wound up).
No control over the timing of realisation of capital gains
Shareholders have no control over the timing of realisation of capital gains, which are at the discretion of
the LIC. Also the tax treatment may not be the same across different taxable entities. Shareholders
should consult their tax advisor if they are unsure or have any questions.
Performance fees
Some LICs (notably smaller specialist LICs) charge performance fees in addition to the MER.
Derivatives and gearing
LICs can leverage the portfolio by using options and/or derivatives. Shareholders should check whether
the LIC uses leverage and what limits are in place.
Page 4 of 39
ASX LICs Monthly Update
The chart below shows the movements in pre-tax NTA during December.
Pre-tax NTA growth, December 2015
Source: MWM Research, IRESS, January 2016
The AMP Capital China Growth Fund (AGF) NTA retraced 18.1% through December, trading ex dividend
on 29 December with a dividend of $0.3387 payable on 31 March 2016, subject to repatriation of funds
from China. On a total return basis the fund was positive for the month, returning 3.1%. The dividend
was much larger than the previous year’s ($0.0292) and was primarily composed of realised capital gains
with the portfolio manager selling into strength during mid 2015. The US listed Morgan Stanley China A
Share Fund (CAF.NYS) distributed a similarly large dividend from capital gains. AGF also provided
investors with an update of estimated expenses to the year ending 31 December 2015. AMP estimates
the cost of extraordinary expenses incurred during the year at 0.08% of fund assets. AGF suffered
through early January as Chinese equity volatility increased dramatically with AGF continuing to trade on
the ASX despite trading in China being suspended twice in the first week of the year.
Carlton Investments (CIN) was the best performer of the larger LICs for the second consecutive month,
adding 6.4% on a pre-tax NTA basis. This reflected CIN’s concentrated position in Event Hospitality and
Entertainment Ltd (EVT, previously Amalgamated Holdings Limited) of 49.5% which increased 9.3%
during December.
Absolute Equity Performance Fund (AEG) enjoyed a successful listing in mid December with a 12%
premium to NTA sustained in recent weeks. AEG employs a market neutral investment strategy via
long/short pair trades on ASX listed securities and derivatives. The portfolio was fully invested after two
weeks and had a net market exposure of +3.3% as at 31 December 2015. Short positions in Primary
Healthcare (PRY) and Sonic Healthcare (SHL) worked well through the month while a pair trade of long
Beach Energy (BPT) and AGL Energy (AGL) weighed on performance.
The Global Resource Masters Fund (GRF) announced on 18 December it would look to wind up the fund
with at least 90% of the net assets to be returned to shareholders via a proposed capital return. The
move followed shareholders approving on 17 November an on-market buyback of up to 50% of the
issued capital of GRF. The company was able to purchase 13.2 million shares, equivalent to 28.6% of
the issued capital, in the following month to 16 December. The majority of these shares were purchased
at approximately $1.35 between 8 and 18 December. The company stated “the significant shareholder
demand for participation in the on-market buyback suggests that the 50% buyback limit will be
insufficient to accommodate all existing shareholders wishing to exit their investment in GRF.”
GRF will hold a general meeting on the proposed return of capital on 19 February 2016. Assuming this
vote is successful, a further meeting will be held to vote on winding up the fund, with a 75% majority
required. GRF will continue to operate the on-market buyback (up to the approved 50% capacity), given
the demand from investors to exit their positions, with shares to be purchased either at or below NAV.
The underlying portfolio positions have now been mostly liquidated with the fund to hold 100% cash. It is
intended the initial capital return will account for at least 90% of GRF’s net assets, with a second smaller
distribution to follow once the winding up process has been completed.
-20%
-15%
-10%
-5%
0%
5%
10%
AG
F
TG
G
EM
F
WIC
EA
I
MFF
ALI
PM
C
PG
F
FG
G
PA
I
CD
M
PA
F
AU
F
EG
I
GV
F
PIC
DU
I
AM
H
DJW
HH
V
QV
E
AU
I
BK
I
AR
G
AFI
WA
M
FG
X
MIR
WA
X
MLT
CT
N
WH
F
CIN
Page 5 of 39
Net Tangible Asset (NTA) Comparison
The two charts below rank the LICs by premium/discount to pre-tax NTA as at 31 December 2015.
Premium / discount to pre-tax NTA – Australian Equities
Source: MWM Research, IRESS, January 2016
Premium / discount to pre-tax NTA – International Equities
Source: MWM Research, IRESS, January 2016
Monthly percentage movements in premium / discounts
Source: MWM Research, IRESS, January 2016
-17.5%-12.3%
-9.4% -8.2% -7.4% -5.5% -5.0% -3.8% -3.8% -2.9%
1.8%4.7% 4.8% 5.7% 6.2% 8.4% 9.9%
14.4%
34.0%
-30%
-20%
-10%
0%
10%
20%
30%
40%
CTN CIN WHF WIC PIC AUI DUI QVE AMH FGX MLT BKI WAX AFI MIR WAM ARG CDM DJW
-15.3%-12.6% -12.2% -11.8% -11.2% -10.6%
-6.4%-4.5% -3.0%
-1.1% -0.1%
3.3%6.8%
10.1%
20.3%
-20%
-10%
0%
10%
20%
30%
AGF PGF HHV TGG GVF PAF ALI EGI AUF EAI MFF EMF PAI FGG PMC
-6%
-4%
-2%
0%
2%
4%
6%
8%
WD
E
BA
F
HH
V
AU
F
PG
F
EA
I
WA
X
US
G
PIC
UR
F
BK
I
CT
N
WH
F
DJW
CIN
AU
I
CD
M
QV
E
PA
I
MLT
EM
F
FG
X
TG
G
DU
I
AFI
WA
M
MFF
MIR
FG
G
AM
H
ALI
AR
G
WIC
PM
C
ALF
AG
F
TO
P
Page 6 of 39
Annualised LIC Share Price Performance
The tables below illustrate the share price performance of LICs which have been listed for at least 5
years. As can be seen, international equity strategies have delivered the best total returns in recent years,
primarily from an uplift in capital values. Australian equity total returns have been less compelling but a
better source of dividend payments, particularly when accounting for franking credits.
Further information on returns and standard deviations is included in the appendix. A summary snapshot
page is also provided for the largest, most liquid LICs, including the manager’s investment thesis and a
brief history of the fund.
1-Year return classified by Investment style
3-Year annualised return classified by Investment style
5-Year annualised return classified by Investment style
Source: IRESS, January 2016
-30
-20
-10
0
10
20
30
40
AFI ARG MLT BKI DJW WAM CIN AUI DUI CDM MIR WHF AMH WAX CTN WIC MFF AGF PMC TGG HHV AUF ALF GRF IPE WAA
(%) Capital Return Dividend Return Total Return
Absolute /
Specialist
Australian Equities International Equities
-10
0
10
20
30
40
AFI ARG MLT BKI DJW WAM CIN AUI DUI CDM MIR WHF AMH WAX CTN WIC MFF AGF PMC TGG HHV AUF ALF GRF IPE WAA
(%) Capital Return Dividend Return Total Return
Absolute /
Specialist
Australian Equities International Equities
-10
0
10
20
30
AFI ARG MLT BKI DJW WAM CIN AUI DUI CDM MIR WHF AMH WAX CTN WIC MFF AGF PMC TGG HHV AUF ALF GRF IPE WAA
(%) Capital Return Dividend Return Total Return
Absolute /
Specialist
Australian Equities International Equities
Page 7 of 39
Dividend focus
Managers of LICs place a great emphasis on dividend payments given the primarily retail investor base.
The majority of Australian equity LICs listed below have a long track record of paying fully franked
dividends with the largest LICs (AFI, ARG, MLT) having paid 100% franked dividends for over 20 years.
12 Months Net dividend yield and Gross dividend Yield (%)
Source: IRESS Bloomberg, January 2016
Franking accounts
The chart below illustrates the Australian equity LICs with the largest franking credit balances, normalised
by the LIC’s asset base. A larger franking credit balance provides a degree of certainty future dividends
will be fully franked with the potential for franking credits to be returned via capital management
strategies.
Australian LICs - Franking credit balances
Source: MWM Research, IRESS, January 2016
0
5
10
15
20
25
30
35
40
45
AFI ARG MLT BKI DJW WAM CIN AUI DUI CDM MIR WHF AMH WAX QVE FGX CTN WIC MFF AGF PMC TGG HHV AUF URF ALF WAA
% Dividend 12m Yld- Net Dividend 12m Yld -Gross
International EquitiesAustralian Equities Absolute /
Specialist
0
1
2
3
4
5
6
0
20
40
60
80
100
120
140
MIR DJW CIN MLT AUI CDM FGX AFI BKI WAX
(%)($m) Franking Credits (LHS) Franking credits as % of assets (RHS)
Page 8 of 39
Recent and upcoming distributions
Source: IRESS, January 2016
Code Name Ex-Date Pay Date Dividend Frank ing Type DRP
IPE IPE 11-Nov-15 2-Dec-15 $0.0100 70% I na
CBC CBG Capital 18-Nov-15 27-Nov-15 $0.0150 100% F $0.9770
WHF Whitefield 20-Nov-15 11-Dec-15 $0.0850 100% I $4.0600
AYD Australian Masters Yield Fund No 1 23-Nov-15 4-Dec-15 $0.6400 100% I na
AYH Australian Masters Yield Fund No 2 23-Nov-15 4-Dec-15 $0.7300 100% I na
AKY Australian Masters Corporate Bond Fund No 5 23-Nov-15 4-Dec-15 $0.8800 100% I na
AYZ Australian Masters Yield Fund No 5 30-Nov-15 10-Dec-15 $0.5300 100% I na
AYJ Australian Masters Yield Fund No 3 30-Nov-15 10-Dec-15 $0.4600 100% I na
AYK Australian Masters Yield Fund No 4 30-Nov-15 10-Dec-15 $0.4300 100% I na
AQF Australian Governance Masters Index Fund 3-Dec-15 18-Dec-15 $0.0200 100% S $1.6800
IBC Ironbark Capital 7-Dec-15 23-Dec-15 $0.0075 100% I na
URF US Masters Residential Property Fund 29-Dec-15 29-Jan-16 $0.0500 0% F na
AGF AMP Capital China Growth Fund 29-Dec-15 31-Mar-16 $0.3387 0% F na
EMF Emerging Markets Masters Fund 29-Dec-15 29-Jan-16 $0.0300 0% I na
ABW Aurora Absolute Return Fund 29-Dec-15 19-Jan-16 $0.0098 0% I $0.9489
AYF Australian Enhanced Income Fund 29-Dec-15 15-Jan-16 $0.1000 26% I na
AUP Aurora Property Buy-Write Income Trust 29-Dec-15 19-Jan-16 $0.1082 0% I $5.4651
AIB Aurora Global Income Trust 29-Dec-15 19-Jan-16 $0.0171 0% I $0.8509
CAM Clime Capital 4-Jan-16 22-Jan-16 $0.0120 100% I na
ALR Aberdeen Leaders 7-Jan-16 4-Feb-16 $0.0100 100% I na
MIR Mirrabooka Investments 20-Jan-16 9-Feb-16 $0.0350 100% I na
DJW Djerriwarrh Investments 28-Jan-16 16-Feb-16 $0.1000 100% I na
WIC Westoz Investment Company 1-Feb-16 19-Feb-16 $0.0300 100% I na
OZG Ozgrowth Limited 1-Feb-16 19-Feb-16 $0.0025 100% I na
Page 9 of 39
Premium/Discount to NTA (%) history (as at 31 December 2015)
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
2011 2012 2013 2014 2015
Australian Foundation Investment Company (AFI)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
-15%
-10%
-5%
0%
5%
10%
15%
2011 2012 2013 2014 2015
Argo Investments (ARG)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
-20%
-15%
-10%
-5%
0%
5%
10%
2011 2012 2013 2014 2015
Milton Corporation (MLT)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
$2.0
-20%
-15%
-10%
-5%
0%
5%
10%
2011 2012 2013 2014 2015
BKI Investment Company (BKI)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
0%
5%
10%
15%
20%
25%
30%
35%
40%
2011 2012 2013 2014 2015
Djerriwarrh Investments (DJW)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
2011 2012 2013 2014 2015
WAM Capital (WAM)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
-30%
-25%
-20%
-15%
-10%
-5%
0%
2011 2012 2013 2014 2015
Carlton Investments (CIN)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
-20%
-15%
-10%
-5%
0%
5%
10%
2011 2012 2013 2014 2015
Australian United Investment Company (AUI)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
2011 2012 2013 2014 2015
Diversified United Investment (DUI)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
-40%
-30%
-20%
-10%
0%
10%
20%
2011 2012 2013 2014 2015
Cadence Capital (CDM)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
Page 10 of 39
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
2011 2012 2013 2014 2015
Mirrabooka Investments (MIR)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
-16%
-14%
-12%
-10%
-8%
-6%
-4%
-2%
0%
2011 2012 2013 2014 2015
Whitefield (WHF)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
-25%
-20%
-15%
-10%
-5%
0%
5%
2011 2012 2013 2014 2015
AMCIL (AMH)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
2011 2012 2013 2014 2015
WAM Research (WAX)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
2011 2012 2013 2014 2015
Magellan Flagship Fund (MFF)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
-40%
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%
2011 2012 2013 2014 2015
AMP Capital China Growth Fund (AGF)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
2011 2012 2013 2014 2015
Platinum Capital (PMC)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
-25%
-20%
-15%
-10%
-5%
0%
5%
2011 2012 2013 2014 2015
Templeton Global Growth Fund (TGG)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
2011 2012 2013 2014 2015
Hunter Hall Global Value (HHV)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
$2.0
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
2011 2012 2013 2014 2015
Australian Leaders Fund (ALF)
Premium/disc to NTA (LHS) Share price (RHS) NTA price (RHS)
Page 11 of 39
Glossary
Benchmark
LICs often provide an indicator or benchmark against which their portfolio performance can be compared.
Capital management
LICs may increase or decrease the amount of capital held by offering share buybacks, dividend reinvestment
plans and/or share purchase plans. These mechanisms allow shareholders to increase or decrease their holdings
without brokerage fees being charged.
Dividend/distribution reinvestment plan (DRP)
A company may offer shareholders the opportunity to reinvest their dividend in the LIC’s shares. This allows the
LIC to retain cash which may be consumed by participating in the DRP’s of their investee companies or other
purchases of securities. A DRP allows shareholders to increase their shareholding without brokerage fees. A
discount may be offered on the price of the new shares.
Dividend Type
Dividends are denoted interim (I), final (F) or special (S).
Dividend yield
Dividend yield is defined as dividend over the last 12 months divided by current share price. Payment of a
dividend is determined at the discretion of the manager. Not all LICs pay or intend to pay a dividend.
Funds under management (FUM)
FUM is the quantum of funds available to the LIC for investment.
Liquidity risk
Whereas many of the underlying investments of LICs may be highly liquid (able to be traded in sizeable volumes
without moving the share price significantly), LICs do not trade as robustly. It is wise to check the liquidity of the
LIC when deciding how much to invest. LICs may hold investments that are illiquid, facing liquidity risks in their
operations.
Listed investment company (LIC)
LICs are closed-end vehicles, allowing the company to concentrate on investment selection rather than potential
redemptions. Liquidity is provided to shareholders via trading on the ASX. The manager may issue new shares
where investment opportunities arise or buy-back and cancel shares in order to reduce the size of the funds
under management. Some LICs manage the investment portfolio to minimise tax and produce regular income
through fully franked dividends.
Listed investment company capital gains
A LIC capital gain is a capital gain made directly by a listed investment company. If the dividend paid by a LIC
includes the capital gain, shareholders who are Australian residents can claim an income tax deduction. The LIC
advises its shareholders how much of the dividend is attributable to a LIC capital gain.
Refer: http://www.ato.gov.au/Business/Bus/CGT-listed-investment-companies-concession/
Listed investment trusts (LITs)
LITs have an open-ended structure meaning that investors can buy or sell their units on the ASX or directly buy
from or sell to the Trust. LITs must pay all surplus income in the form of distributions, which carry the franking
levels of the underlying investments’ distributions.
Management expense ratio (MER)
The MER is the cost to manage the investments of the LIC (and therefore the cost to the shareholder). The LIC
may use internal or external management.
Page 12 of 39
Net tangible assets (NTA)
Pre-tax NTA is calculated by valuing the aggregate portfolio at market prices and dividing by the number of
shares on issue. The NTA figure is also quoted on a post-tax basis, where any tax that would be payable on the
realisation of the portfolio is taken into account.
Performance fee
Some LICs receive a performance fee, where the investment management stipulates and the performance
exceeds the benchmark. The performance fee may be structured so that after a period of poor performance the
LIC’s performance has to exceed prior highs before being payable.
Share purchase plan (SPP)
ASIC has granted relief to allow companies to offer a share purchase plan where investors may apply for new
shares at a predetermined price without being charged brokerage. The amount is restricted to $15,000 per
investor per annum. A discount may be offered on the price of the new shares.
Share buyback
Companies may offer a share buyback program, purchasing shares on market (or potentially off-market) to
reduce the FUM.
Page 13 of 39
Appendix
Total returns at 31 December 2015
LICs Name Share price total return (%) Return standard deviation (%)
1M 3M 1 Yr 3 Yr 5 Yr 1 Yr 3 Yr 5 Yr
Australian Equities
AFI Australian Foundation Investment 3.7 4.4 -1.7 5.7 3.7 9.8 8.9 11.4
ARG Argo Investments 5.1 5.4 3.1 9.2 4.8 9.6 9.5 10.7
MLT Milton Corporation 5.0 7.3 2.2 9.1 7.4 12.0 12.8 13.3
BKI BKI Investment 0.9 5.6 6.3 7.2 6.4 13.3 12.7 13.3
DJW Djerriwarrh Investments 0.9 4.6 -6.7 1.8 0.4 11.1 10.3 14.2
WAM WAM Capital 3.9 6.0 5.5 8.3 8.1 8.2 9.1 9.6
CIN Carlton Investments 6.0 16.9 20.0 19.8 13.5 14.7 15.2 -
AUI Australian United Investment 1.4 1.0 -5.9 4.6 2.2 12.1 13.4 13.9
DUI Diversified United Investment 2.1 4.0 0.3 7.2 3.8 12.8 14.2 15.2
CDM Cadence Capital -1.0 3.0 8.1 3.1 12.9 9.3 11.7 13.2
MIR Mirrabooka Investments 4.9 4.5 1.2 8.0 8.8 12.1 15.3 16.2
WHF Whitefield Limited 3.8 4.6 2.6 12.0 8.4 11.7 11.3 11.6
PIC Perpetual Equity Investment -1.5 2.6 -0.5 - - 8.8 - -
AMH AMCIL Limited 4.1 9.8 1.1 7.1 8.0 10.7 16.2 14.4
WAX WAM Research 2.0 2.8 11.2 12.3 12.5 8.1 11.0 12.0
QVE QV Equities 1.5 1.0 -0.5 - - 7.4 - -
FGX Future Generation Invst Company 3.6 7.4 11.0 - - 9.8 - -
International Equities
MFF Magellan Flagship Fund -0.5 12.3 15.5 31.1 24.5 17.8 18.2 16.7
AGF AMP Capital China Growth Fund -13.3 -9.4 2.8 18.6 6.6 39.6 33.6 29.2
PMC Platinum Capital 1.3 2.2 4.4 21.5 5.7 13.7 14.9 16.1
PGF PM Capital Glb Opport. Fund -3.8 2.0 -5.2 - - 14.4 - -
TGG Templeton Global Growth Fund -2.8 -5.4 -12.3 17.3 9.4 15.9 17.2 16.3
FGG Future Generation Global Invest. 0.9 7.3 - - - - - -
PAI Platinum Asia Investments -1.0 4.0 - - - - - -
HHV Hunter Hall Global Value -1.7 8.8 -9.5 13.1 7.5 21.9 16.2 15.8
ALI Argo Global Listed Infrastructure 1.2 -11.2 - - - - - -
Alternative/Specialist
URF US Masters Residential Property -5.5 -8.5 -6.8 6.1 - - - -
ALF Australian Leaders Fund 4.9 -3.1 -2.1 2.9 5.3 16.7 15.2 14.2
Source: IRESS, Bloomberg, January 2016
Page 14 of 39
Dividend yield, net and grossed up at 31 December 2015
LICs classified by Style 1 Yr DPS
Growth (%)
3 Yr DPS
Growth (%)
5 Yr DPS
Growth (%)
12m Gross div.
Yld (%)
12m Net div.
Yld (%)
Australian Equities
AFI Australian Foundation Investment 4.5 3.1 1.8 5.6 3.9
ARG Argo Investments 5.4 4.3 3.4 5.4 3.8
MLT Milton Corporation 4.4 6.4 5.2 6.1 4.2
BKI BKI Investment 3.6 4.1 2.9 6.2 4.3
DJW Djerriwarrh Investments 0.0 0.0 0.0 8.7 6.1
WAM WAM Capital 7.7 8.4 11.8 9.5 6.6
CIN Carlton Investments 8.0 8.7 10.0 4.8 3.4
AUI Australian United Investment 6.3 6.7 5.9 6.6 4.6
DUI Diversified United Investment 2.5 3.4 2.0 6.0 4.2
CDM Cadence Capital 10.0 -4.2 22.4 10.6 7.4
MIR Mirrabooka Investments -20.2 16.8 9.8 8.8 6.6
WHF Whitefield Limited 0.0 0.0 0.0 5.8 4.0
PIC Perpetual Equity Investment - - - 0.7 0.5
AMH AMCIL Limited -38.5 17.0 14.9 6.4 4.5
WAX WAM Research 6.7 7.2 3.9 8.9 6.2
QVE QV Equities - - - 2.1 1.5
FGX Future Generation Invst Company - - - 2.5 1.7
International Equities
MFF Magellan Flagship Fund 25.6 31.2 - 1.2 1.0
AGF AMP Capital China Growth Fund 772.3 143.5 67.2 30.5 30.5
PMC Platinum Capital 37.5 - 2.1 8.3 5.8
PGF PM Capital Glb Opport. Fund - - - - -
TGG Templeton Global Growth Fund -10.7 28.4 1.2 3.7 3.4
FGG Future Generation Global Invest. - - - - -
PAI Platinum Asia Investments - - - - -
HHV Hunter Hall Global Value 79.6 - 7.6 10.6 10.3
ALI Argo Global Listed Infrastructure - - - - -
Alternative/Specialist
URF US Masters Residential Property 0.0 0.7 - 5.0 5.0
ALF Australian Leaders Fund -16.7 -3.1 -3.6 10.1 7.0
Source: IRESS Bloomberg, January 2016
Page 15 of 39
LICs liquidity analysis at 31 December 2015
Code Company 3M avg
traded vol
3M avg daily
value traded
6M avg
traded vol
6M avg daily
value traded
Bid ask
spread
(A$)
Bid ask
spread/Price
ratio
Australia Equities
AFI Australian Foundation Investment 281,539 1,638,553 324,970 1,929,648 0.02 0.34%
ARG Argo Investments 135,094 1,039,697 152,306 1,194,243 0.03 0.38%
MLT Milton Corporation 142,939 620,352 136,247 601,299 0.06 1.35%
BKI BKI Investment 141,151 234,949 175,775 292,736 0.01 0.60%
DJW Djerriwarrh Investments 76,962 324,296 91,266 397,919 0.05 1.17%
WAM WAM Capital 420,677 851,614 409,255 818,933 0.01 0.47%
CIN Carlton Investments 2,797 88,617 2,421 75,518 0.35 1.09%
AUI Australian United Investment 15,446 113,560 14,237 108,725 0.01 0.14%
DUI Diversified United Investment 51,972 174,142 48,541 165,284 0.08 2.40%
CDM Cadence Capital 295,274 441,508 384,994 562,643 0.025 1.68%
MIR Mirrabooka Investments 46,720 116,482 47,279 120,522 0.06 2.33%
WHF Whitefield Limited 32,930 138,894 30,707 130,100 0.07 1.66%
PIC Perpetual Equity Investment 179,951 176,181 204,020 198,720 0.005 0.52%
AMH AMCIL Limited 39,825 34,529 45,124 39,222 0.01 1.12%
WAX WAM Research 187,206 234,677 157,371 194,634 0.005 0.39%
QVE QV Equities 167,146 171,483 169,891 175,011 0.005 0.50%
FGX Future Generation Invst Comp. 264,454 295,905 201,136 223,698 0.015 1.29%
International
MFF Magellan Flagship Fund 301,472 604,690 340,019 658,272 0.01 0.48%
AGF AMP Capital China Growth Fund 727,365 938,342 1,057,515 1,342,249 0.005 0.54%
PMC Platinum Capital 169,934 320,854 172,859 326,099 0.005 0.26%
PGF PM Capital Glb Opport. Fund 483,742 495,840 566,734 589,434 0.005 0.51%
TGG Templeton Global Growth Fund 138,852 176,200 161,299 211,483 0.005 0.42%
FGG Future Generation Global Invst. 204,356 231,773 - - 0.04 3.48%
PAI Platinum Asia Investments 276,546 285,415 - - 0.01 1.00%
HHV Hunter Hall Global Value 220,150 257,579 233,263 270,616 0.005 0.43%
ALI Argo Global Listed Infrastructure 118,564 216,195 115,617 219,416 0.07 4.17%
Alternative/Specialist
URF US Masters Residential Property 47,886 103,971 57,239 122,792 0.04 1.99%
ALF Australian Leaders Fund 268,548 367,680 263,465 359,911 0.02 1.41%
Source: IRESS, Bloomberg, January 2016
Page 16 of 39
Australian Foundation Investment Company LimitedDetails
Stock code AFI
Last Price - 31 Dec 15 $5.95
Pre-Tax NTA - 31 Dec 15 $5.63
Premium/discount to NTA 5.68%
Premium/discount avg (5yr) 0.62%
Securities on issue 1,097,326,895
Market cap (m) $6,079
Listed option code n/a
Listed options on issue n/a
Management Fee 0.16%
Performance Fee No
Internal / external mgmt Internal
Dividends (past 12mth) $0.23
Dividend Yield (past 12mth) 3.9%
Franking level (past 12mth) 100.0%
Gross dividend yield (past 12mth) 5.5%
DRP Yes
DRP discount 2.5%
Dividend frequency Semi-annual
Value traded 1 mth ($m) 28.9
Value traded 12 mth ($m) 496.3
Average spread (%) 0.23
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
AFI price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
7/08/2015 14.00 100 28/08/2015 F 6.03
5/02/2015 9.00 100 20/02/2015 I 5.97
8/08/2014 14.00 100 29/08/2014 F 5.93
4/02/2014 8.00 100 21/02/2014 I 5.86
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = S&P ASX 200 Accumulation Index
Performance fee = None
Stand
Dev.**- - 11.81% 12.34% 13.78%
Australian Foundation Investment Company Limited (AFI) invests in
Australian companies with high quality assets, brand and/or business
footprints. AFI is the largest LIC on the ASX and has been listed since
1928. The management expense ratio is amongst the lowest available
and there is no performance fee. AFI has 1.9 million 6.25% $100
convertible notes on issue (ASX code AFIG) which convert to ordinary
shares at $5.0864 at the holders' request. AFI has offered a share
purchase plan (SPP) to investors in recent years with a 5% discount in
2015, while the dividend reinvestment plan (DRP) is also active with a
2.5% discount in place.
The investment team, led by Mark Freeman as Chief Investment Officer,
seeks well-managed companies with strong fundamentals which are
able to pay steady dividends. The investment horizon is the medium to
long term, with the aim of providing attractive total returns and fully
franked dividends which grow at a faster rate than inflation. AFI typically
holds 70 to 100 stocks with an expected annual portfolio turnover of
5%. AFI also operates a trading portfolio, limited to 10% of the total
portfolio, in order to take advantage of shorter-term opportunities in the
market. AFI operates a 'buy and write' option strategy to generate extra
income with the monthly report disclosing which portfolio holdings have
active option positions.
Total
Return3.66% 4.39% 2.15% 9.52% 7.30%
$5.40
$5.60
$5.80
$6.00
$6.20
$6.40
Jan-15 Apr-15 Jul-15 Oct-15
LIC Snapshot Macquarie Wealth Management Research
Page 17 of 39
AMP Capital China Growth FundDetails
Stock code AGF
Last Price - 31 Dec 15 $1.11
Pre-Tax NTA - 31 Dec 15 $1.31
Premium/discount to NTA -15.27%
Premium/discount avg (5yr) -21.51%
Securities on issue 386,294,100
Market cap (m) $328
Listed option code n/a
Listed options on issue n/a
Management Fee 1.65%
Performance Fee Yes
Internal / external mgmt External
Dividends (past 12mth) $0.34
Dividend Yield (past 12mth) 30.5%
Franking level (past 12mth) 0.0%
Gross dividend yield (past 12mth) 30.5%
DRP Yes
DRP discount 0.0%
Dividend frequency Annual
Value traded 1 mth ($m) 17.9
Value traded 12 mth ($m) 402.2
Average spread (%) 0.65
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
AGF price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
29/12/2015 33.87 0 31/03/2016 F
29/12/2014 2.92 0 26/03/2015 F 1.1286
23/12/2013 1.92 0 26/03/2014 F 0.7653
21/12/2012 2.35 0 26/03/2013 I 0.6479
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = S&P/CITIC 300 Total return index (Converted into A$)
Performance fee = 20% of outperformance above the benchmark
Stand
Dev.**- - 40.76% 29.45% 26.89%
AGF’s main objective is to achieve long-term capital growth for investors
by investing in China. The benchmark is the S&P/CITIC 300 Total Return
Index. AGF provides access to China A shares as a holder of a qualified
foreign institutional investor licence. China A shares are Renminbi
denominated shares issued by companies registered in mainland China
and listed on the Shanghai and Shenzhen exchanges.
The AGF portfolio holds its largest weights to the financial services and
industrials sectors, in line with the benchmark, while being underweight
energy. The largest overweight position relative to the benchmark is
health care. AGF’s management fee is 1.65% pa of the value of the
fund’s assets, plus a performance fee of 20% of outperformance above
the benchmark. The fund is unhedged and is subject to movements in
the foreign exchange markets. The fund has historically traded at a 20%
discount to its NTA and has moved to more frequent reporting of its
NTA to help address this.
Total
Return13.18% 18.26% 34.14% 31.06% 13.87%
$0.85
$1.06
$1.27
$1.48
$1.69
$1.90
Jan-15 Apr-15 Jul-15 Oct-15
LIC Snapshot Macquarie Wealth Management Research
Page 18 of 39
Argo Investments LimitedDetails
Stock code ARG
Last Price - 31 Dec 15 $8.00
Pre-Tax NTA - 31 Dec 15 $7.28
Premium/discount to NTA 9.89%
Premium/discount avg (5yr) -1.24%
Securities on issue 676,959,075
Market cap (m) $4,935
Listed option code n/a
Listed options on issue n/a
Management Fee 0.15%
Performance Fee No
Internal / external mgmt Internal
Dividends (past 12mth) $0.30
Dividend Yield (past 12mth) 3.7%
Franking level (past 12mth) 100.0%
Gross dividend yield (past 12mth) 5.3%
DRP Yes
DRP discount 2.0%
Dividend frequency Semi-annual
Value traded 1 mth ($m) 23.5
Value traded 12 mth ($m) 316.8
Average spread (%) 0.20
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
ARG price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
17/08/2015 15.50 100 2/09/2015 F 7.85
12/02/2015 14.00 100 4/03/2015 I 7.95
18/08/2014 14.50 100 3/09/2014 F
11/02/2014 13.50 100 5/03/2014 I 7.16
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = S&P ASX 200 Accumulation Index
Performance fee = None
Stand
Dev.**- - 12.97% 12.29% 14.06%
Argo Investments Limited (ARG) invests in Australian listed securities
and short-term interest bearing securities. The Company has no debt
and has a market capitalisation of $5.2bn, which places it within
Australia's top 100 listed companies. Argo is internally managed, had an
expense ratio of 0.15% in the year to June 2015 and does not charge a
performance fee. Net tangible assets is reported on a monthly basis.
The underlying portfolio is constructed to provide steady returns over
the long run, by diversifying over a wide range of securities in the
Australian market, typically approximately 100 companies and trusts.
Argo's investment function is led by Jason Beddow, Managing Director,
having joined the firm in 2001 as an analyst and promoted to Chief
Investment Officer in 2008. The team seeks to identify well-managed
businesses with the potential to generate growing and sustainable
profits to fund increasing dividend payments. A majority of its revenue is
generated by the dividends and distributions received from the
companies in the portfolio. The investment team seeks to purchase
companies, or add to existing holdings, below their calculated long-term
value. Portfolio holdings are generally only sold due to takeovers or
when the outlook for the industry or company has deteriorated
significantly.
Total
Return5.12% 5.40% 6.89% 12.86% 8.17%
$7.10
$7.40
$7.70
$8.00
$8.30
$8.60
Jan-15 Apr-15 Jul-15 Oct-15
LIC Snapshot Macquarie Wealth Management Research
Page 19 of 39
Australian United Investment Company LimitedDetails
Stock code AUI
Last Price - 31 Dec 15 $7.40
Pre-Tax NTA - 31 Dec 15 $7.83
Premium/discount to NTA -5.49%
Premium/discount avg (5yr) -6.99%
Securities on issue 109,532,911
Market cap (m) $760
Listed option code n/a
Listed options on issue n/a
Management Fee 0.10%
Performance Fee No
Internal / external mgmt Internal
Dividends (past 12mth) $0.33
Dividend Yield (past 12mth) 4.5%
Franking level (past 12mth) 100.0%
Gross dividend yield (past 12mth) 6.5%
DRP Yes
DRP discount 0.0%
Dividend frequency Semi-annual
Value traded 1 mth ($m) 1.8
Value traded 12 mth ($m) 28.7
Average spread (%) 0.50
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
AUI price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
2/09/2015 18.50 100 25/09/2015 F 7.8021
24/02/2015 15.50 100 17/03/2015 I 8.5764
3/09/2014 17.50 100 25/09/2014 F 8.883
21/02/2014 14.50 100 17/03/2014 I 7.9708
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = S&P ASX 300 Accumulation Index
Performance fee = 20% of outperformance above the benchmark
Stand
Dev.**- - 14.44% 15.48% 17.63%
Australian United Investment Company Limited (AUI) is an Australian
investment company holding a portfolio of securities predominantly
comprising shares of ASX listed companies. AUI’s funds are invested in
shares of companies listed primarily in the ASX300.
AUI is an investment company which seeks, through portfolio
management, to reduce risk and improve income from dividends and
interest over the longer term. Investments are purchased or subscribed
for on the basis of the directors' assessment of their individual
prospects for income and growth. AUI mainly invests in ASX listed
securities using the S&P/ASX 300 Accumulation Index as its
performance benchmark.
Total
Return1.37% 1.01% -1.69% 8.82% 5.98%
$6.80
$7.20
$7.60
$8.00
$8.40
$8.80
Jan-15 Apr-15 Jul-15 Oct-15
LIC Snapshot Macquarie Wealth Management Research
Page 20 of 39
BKI Investment Company LimitedDetails
Stock code BKI
Last Price - 31 Dec 15 $1.69
Pre-Tax NTA - 31 Dec 15 $1.61
Premium/discount to NTA 4.66%
Premium/discount avg (5yr) -5.89%
Securities on issue 568,700,054
Market cap (m) $899
Listed option code n/a
Listed options on issue n/a
Management Fee 0.18%
Performance Fee No
Internal / external mgmt Internal
Dividends (past 12mth) $0.07
Dividend Yield (past 12mth) 4.3%
Franking level (past 12mth) 100.0%
Gross dividend yield (past 12mth) 6.1%
DRP Yes
DRP discount 0.0%
Dividend frequency Semi-annual
Value traded 1 mth ($m) 5.0
Value traded 12 mth ($m) 77.4
Average spread (%) 0.49
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
BKI price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
5/08/2015 3.65 100 27/08/2015 F 1.7
12/02/2015 3.55 100 26/02/2015 I 1.75
12/08/2014 3.50 100 28/08/2014 F 1.66
11/02/2014 3.45 100 27/02/2014 I 1.61
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = S&P ASX 300 Accumulation Index
Performance fee = None
Stand
Dev.**- - 15.86% 15.29% 15.92%
BKI Investment Company Limited (BKI) is an Australian investment
company which invests in a diversified portfolio of Australian shares,
trusts and interest bearing securities.
The company is a long-term investor in companies, trusts and interest
bearing securities with a focus on Australian entities. Some 30 years
since the inception of the core portfolio, BKI’s investment strategy is
focused on research driven, active equities management, investing for
the long term, in profitable companies, with a history of paying attractive
dividend yields. The stock selection is bottom up and research driven,
focusing on the merits of individual companies rather than market and
economic trends. BKI targets a 90% to 95% dividend pay out ratio of
Net Operating Profit.
Total
Return0.90% 5.64% 10.85% 11.48% 10.28%
$1.50
$1.56
$1.62
$1.68
$1.74
$1.80
Jan-15 Apr-15 Jul-15 Oct-15
LIC Snapshot Macquarie Wealth Management Research
Page 21 of 39
Carlton Investments LimitedDetails
Stock code CIN
Last Price - 31 Dec 15 $33.91
Pre-Tax NTA - 31 Dec 15 $38.66
Premium/discount to NTA -12.29%
Premium/discount avg (5yr) -16.21%
Securities on issue 26,474,675
Market cap (m) $847
Listed option code n/a
Listed options on issue n/a
Management Fee 0.09%
Performance Fee No
Internal / external mgmt Internal
Dividends (past 12mth) $1.08
Dividend Yield (past 12mth) 3.2%
Franking level (past 12mth) 100.0%
Gross dividend yield (past 12mth) 4.5%
DRP No
DRP discount n/a
Dividend frequency Semi-annual
Value traded 1 mth ($m) 1.1
Value traded 12 mth ($m) 17.4
Average spread (%) 1.05
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
CIN price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
31/08/2015 65.00 100 21/09/2015 F
2/03/2015 43.00 100 19/03/2015 I
29/08/2014 63.00 100 17/09/2014 F
27/02/2014 37.00 100 20/03/2014 I
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = S&P ASX 200 Accumulation Index
Performance fee = None
Stand
Dev.**- - 19.33% 17.69% 17.81%
Carlton Investments Limited (CIN) is an investment company investing
and holding in shares and units in entities listed on the Australian
Securities Exchange with a long term investment horizon. CIN invests in
Australian listed entities that provide both high levels of income through
predominantly franked dividends and long term capital growth, and
holds its equity investments for the long term and not for trading
purposes.
Investments are generally only disposed of through takeover, mergers or
other exceptional circumstances that may arise from time to time.
Carlton Investments Group entities do not act as share traders nor do
they invest in speculative stocks.
Total
Return5.97% 16.93% 23.86% 23.28% 16.45%
$28
$29
$30
$31
$32
$33
$34
$35
Jan-15 Apr-15 Jul-15 Oct-15
LIC Snapshot Macquarie Wealth Management Research
Page 22 of 39
Djerriwarrh Investments LimitedDetails
Stock code DJW
Last Price - 31 Dec 15 $4.30
Pre-Tax NTA - 31 Dec 15 $3.21
Premium/discount to NTA 33.96%
Premium/discount avg (5yr) 19.70%
Securities on issue 218,589,718
Market cap (m) $940
Listed option code n/a
Listed options on issue n/a
Management Fee 0.41%
Performance Fee No
Internal / external mgmt Internal
Dividends (past 12mth) $0.26
Dividend Yield (past 12mth) 6.0%
Franking level (past 12mth) 100.0%
Gross dividend yield (past 12mth) 8.6%
DRP No
DRP discount n/a
Dividend frequency Semi-annual
Value traded 1 mth ($m) 4.3
Value traded 12 mth ($m) 105.2
Average spread (%) 0.58
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
DJW price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
28/01/2016 10.00 100 16/02/2016 I
4/08/2015 16.00 100 21/08/2015 F
29/01/2015 10.00 100 17/02/2015 I
5/08/2014 16.00 100 22/08/2014 F
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = S&P ASX 200 Accumulation Index
Performance fee = None
Stand
Dev.**- - 18.19% 17.46% 19.72%
Djerriwarrh Investments Limited (DJW) invests in Australian equitieswith
a focus on stocks predominantly in the ASX 50. DJW was listed on the
ASX during 1995.
DJW aims to provide shareholders with attractive investment returns
through access to a steady stream of fully franked dividends and capital
growth. The investment philosophy is built on taking a medium to longer
term view of value, which means the company tends to buy and hold
individual stocks for the long term based on business strategy of the
companies, their underlying value and growth prospects. The company
also uses exchange traded options to enhance income returns to
investors. DJW sells options on stocks in the portfolio which generates
additional income via option premiums. The level of covered-call options
typically range between 20% to 50% of the total portfolio.
Total
Return0.94% 4.62% -1.08% 7.58% 5.82%
$4.00
$4.20
$4.40
$4.60
$4.80
$5.00
Jan-15 Apr-15 Jul-15 Oct-15
LIC Snapshot Macquarie Wealth Management Research
Page 23 of 39
Diversified United Investment LimitedDetails
Stock code DUI
Last Price - 31 Dec 15 $3.41
Pre-Tax NTA - 31 Dec 15 $3.59
Premium/discount to NTA -5.01%
Premium/discount avg (5yr) -8.45%
Securities on issue 206,928,779
Market cap (m) $664
Listed option code n/a
Listed options on issue n/a
Management Fee 0.13%
Performance Fee No
Internal / external mgmt Internal
Dividends (past 12mth) $0.14
Dividend Yield (past 12mth) 4.1%
Franking level (past 12mth) 100.0%
Gross dividend yield (past 12mth) 5.9%
DRP Yes
DRP discount 0.0%
Dividend frequency Semi-annual
Value traded 1 mth ($m) 1.9
Value traded 12 mth ($m) 50.5
Average spread (%) 0.64
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
DUI price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
2/09/2015 7.50 100 25/09/2015 F 3.2981
24/02/2015 6.50 100 17/03/2015 I 3.6647
3/09/2014 7.50 100 25/09/2014 F 3.8326
21/02/2014 6.50 100 17/03/2014 I 3.5276
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = S&P ASX 300 Accumulation Index
Performance fee = None
Stand
Dev.**- - 17.69% 17.79% 20.23%
Diversified United Investment Limited (DUI) is an investment company
that invests in a diversified portfolio with the objective of obtaining its
current income and longer term capital gain within an acceptable level
of risk.
The philosophy is to take a medium to long term view and to invest in
Australian equities and short term deposits. Investments may also be
made from time to time in listed property trusts, fixed interest securities,
convertible notes or international equities.
Total
Return2.10% 3.96% 4.41% 11.27% 7.55%
$3.10
$3.20
$3.30
$3.40
$3.50
$3.60
$3.70
$3.80
Jan-15 Apr-15 Jul-15 Oct-15
LIC Snapshot Macquarie Wealth Management Research
Page 24 of 39
Future Generation Global Investment Company LimitedDetails
Stock code FGG
Last Price - 31 Dec 15 $1.17
Pre-Tax NTA - 31 Dec 15 $1.06
Premium/discount to NTA 10.10%
Premium/discount avg (5yr) 1.29%
Securities on issue 275,208,667
Market cap (m) $314
Listed option code FGGO
Listed options on issue 274,135,666
Management Fee 1.00%
Performance Fee No
Internal / external mgmt External
Dividends (past 12mth) $0.00
Dividend Yield (past 12mth) 0.0%
Franking level (past 12mth) 0.0%
Gross dividend yield (past 12mth) 0.0%
DRP No
DRP discount n/a
Dividend frequency None
Value traded 1 mth ($m) 2.8
Value traded 12 mth ($m) 23.5
Average spread (%) 2.33
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
FGG price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = No benchmark
Performance fee = None
Stand
Dev.**- - - - -
Future Generation Global Investment Company Limited (FGG) is an
internationally focused listed investment company with the dual
objectives of providing investors with diversified exposure to global
equities while also helping to improve the lives of young Australians who
are affected by mental health issues.
The company is expecting to have 10 to 20 fund managers, by having a
number of different fund managers the company will have access to a
range of investment styles and strategies. The company believes that
the diversification of styles and strategies used by the different
underlying funds in its portfolio is important in managing and mitigating
risk in the company's portfolio. The company expects its portfolio will
largely comprise investments in funds with exposure to global equities.
The company may invest directly in securities (or similar investments)
and may also retain cash where it is of the view it is prudent to do so.
Total
Return0.86% 7.34% - - -
$1.00
$1.04
$1.08
$1.12
$1.16
$1.20
Jan-15 Apr-15 Jul-15 Oct-15
LIC Snapshot Macquarie Wealth Management Research
Page 25 of 39
Hunter Hall Global Value LimitedDetails
Stock code HHV
Last Price - 31 Dec 15 $1.18
Pre-Tax NTA - 31 Dec 15 $1.34
Premium/discount to NTA -12.18%
Premium/discount avg (5yr) -12.01%
Securities on issue 242,433,553
Market cap (m) $267
Listed option code n/a
Listed options on issue n/a
Management Fee 1.50%
Performance Fee Yes
Internal / external mgmt Internal
Dividends (past 12mth) $0.08
Dividend Yield (past 12mth) 6.8%
Franking level (past 12mth) 0.0%
Gross dividend yield (past 12mth) 6.8%
DRP Yes
DRP discount 0.0%
Dividend frequency Semi-annual
Value traded 1 mth ($m) 3.1
Value traded 12 mth ($m) 98.3
Average spread (%) 0.64
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
HHV price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
3/09/2015 4.00 0 18/09/2015 S 1.08
3/09/2015 4.00 0 18/09/2015 F 1.08
15/04/2015 4.00 18 29/04/2015 I 1.21
18/09/2014 3.00 23 1/10/2014 F 1.12
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = MSCI World Accumulation Net Return Index in A$
Performance fee = 15% of investment portfolio compared to its benchmark in A$
Stand
Dev.**- - 24.20% 18.51% 20.00%
HHV invests in domestic and international stocks using a valued based
investment approach. Stocks trading under intrinsic value are selected
with a bias towards small-mid cap stocks. HHV holds a high portion of
the portfolio in Australia while being underweight in other regions (US,
Europe and Asia) when compared to the benchmark and peers that
invest globally. HHV’s investments are bound by the ethical investment
policy where investments harmful to humans or the environment are
removed.
The portfolio carries high stock-specific risk due to the high
concentration in individual companies such as Sirtex Medical Limited
(SRX) and St Barbara (SBM). HHV pays a management fee of 1.5% per
annum (payable on a monthly basis) to the investment manager. The
performance fee equates to 15% of any outperformance above the
benchmark (MSCI World Net Returns Index in A$).
Total
Return-1.67% 8.76% -3.38% 18.74% 10.72%
$1.00
$1.10
$1.20
$1.30
$1.40
$1.50
Jan-15 Apr-15 Jul-15 Oct-15
LIC Snapshot Macquarie Wealth Management Research
Page 26 of 39
Magellan Flagship Fund LimitedDetails
Stock code MFF
Last Price - 31 Dec 15 $2.10
Pre-Tax NTA - 31 Dec 15 $2.10
Premium/discount to NTA -0.10%
Premium/discount avg (5yr) -8.89%
Securities on issue 464,156,179
Market cap (m) $849
Listed option code MFFO
Listed options on issue 78,014,630
Management Fee 1.25%
Performance Fee Yes
Internal / external mgmt External
Dividends (past 12mth) $0.02
Dividend Yield (past 12mth) 1.0%
Franking level (past 12mth) 50.0%
Gross dividend yield (past 12mth) 1.2%
DRP Yes
DRP discount 0.0%
Dividend frequency Semi-annual
Value traded 1 mth ($m) 9.9
Value traded 12 mth ($m) 169.3
Average spread (%) 0.64
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
MFF price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
13/10/2015 1.00 100 12/11/2015 F 1.8709
29/04/2015 1.00 0 15/05/2015 I 1.7414
13/10/2014 1.00 0 14/11/2014 F 1.4659
29/04/2014 1.00 0 16/05/2014 I 1.4804
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = No benchmark
Performance fee = 10% outperformance, capped at $2m per annum.
Stand
Dev.**- - 20.30% 23.12% 21.64%
MFF is an LIC with two main objectives: to maximise risk adjusted after-
tax returns for shareholders by investing in outstanding companies at
below their assessed intrinsic value and to minimise the risk of
permanent loss for their shareholders. MFF seeks to identify companies
with competitive and scale advantages and strong cash flows. By
selecting companies with these characteristics, the portfolio is skewed
towards multinationals and large US companies, with exposure to
Europe and Asia obtained indirectly via multinationals listed in the US.
The portfolio is concentrated with the top 5 holdings representing over
50% of the assets held. No individual position, at cost, exceeds 10% of
the company’s investment assets, except where pre-approved by the
board up to a limit of 20%.
MFF has a borrowing limit of 20% of investment assets. The use of
derivatives and short-selling is very limited. MFF may use currency
hedging, but does not anticipate hedging non-$A cash flows or
investments in the current exchange rate and economic environment.
MFF holds its cash predominately in US dollars. The performance fee is
A$ 2 million if total shareholder’s return exceeds 10% p.a., capped at
$6m to 31 December 2016.
Total
Return-0.47% 12.83% 16.65% 32.27% 25.34%
$1.70
$1.80
$1.90
$2.00
$2.10
$2.20
Jan-15 Apr-15 Jul-15 Oct-15
LIC Snapshot Macquarie Wealth Management Research
Page 27 of 39
Mirrabooka Investments LimitedDetails
Stock code MIR
Last Price - 31 Dec 15 $2.58
Pre-Tax NTA - 31 Dec 15 $2.43
Premium/discount to NTA 6.17%
Premium/discount avg (5yr) 6.03%
Securities on issue 142,877,561
Market cap (m) $366
Listed option code n/a
Listed options on issue n/a
Management Fee 0.67%
Performance Fee No
Internal / external mgmt Internal
Dividends (past 12mth) $0.10
Dividend Yield (past 12mth) 3.9%
Franking level (past 12mth) 100.0%
Gross dividend yield (past 12mth) 5.5%
DRP Yes
DRP discount 5.0%
Dividend frequency Semi-annual
Value traded 1 mth ($m) 1.4
Value traded 12 mth ($m) 29.7
Average spread (%) 1.12
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
MIR price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
20/01/2016 3.50 100 9/02/2016 I
22/07/2015 7.00 100 7/08/2015 S 2.5
22/07/2015 6.50 100 7/08/2015 F 2.5
22/01/2015 3.50 100 10/02/2015 I 2.23
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = S&P ASX Mid Cap 50 and Small Ord Accu. Indices
Performance fee = None
Stand
Dev.**- - 22.85% 25.13% 24.86%
Mirrabooka Investments Limited (MIR) is an investment company
specializing in small and medium sized companies located with Australia
and New Zealand. The company's general definition of small and
medium sized companies is those companies which fall outside the top
50 listed companies, by market capitalization, on the Australian Stock
Exchange (ASX) or are in the S&P/ASX Mid Cap 50s or Small Ordinaries
Index.
The portfolio has a medium to long-term investment horizon. Securities
purchased that grow to be reclassified as large will not necessarily be
sold if the company is satisfied with investment prospects. The
company typically holds between 50 - 80 stocks depending on their fit
with its investment aims and the desired concentration of risk within the
portfolio. Portfolio performance is benchmarked against the Small
Ordinaries Accumulation Index and the Mid Cap 50 Accumulation Index.
Total
Return4.88% 4.45% 5.10% 12.06% 12.74%
$2.40
$2.50
$2.60
$2.70
$2.80
$2.90
Jan-15 Apr-15 Jul-15 Oct-15
LIC Snapshot Macquarie Wealth Management Research
Page 28 of 39
Milton Corporation LimitedDetails
Stock code MLT
Last Price - 31 Dec 15 $4.58
Pre-Tax NTA - 31 Dec 15 $4.50
Premium/discount to NTA 1.78%
Premium/discount avg (5yr) -3.48%
Securities on issue 649,001,426
Market cap (m) $2,797
Listed option code n/a
Listed options on issue n/a
Management Fee 0.12%
Performance Fee No
Internal / external mgmt Internal
Dividends (past 12mth) $0.18
Dividend Yield (past 12mth) 4.0%
Franking level (past 12mth) 100.0%
Gross dividend yield (past 12mth) 5.7%
DRP Yes
DRP discount 0.0%
Dividend frequency Semi-annual
Value traded 1 mth ($m) 12.2
Value traded 12 mth ($m) 157.3
Average spread (%) 0.33
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
MLT price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
13/08/2015 0.40 100 3/09/2015 S 4.39
13/08/2015 9.90 100 3/09/2015 F 4.39
12/02/2015 8.50 100 3/03/2015 I 4.56
14/08/2014 0.40 100 3/09/2014 S 4.55
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = S&P/ASX All Ord Accu. Index
Performance fee = None
Stand
Dev.**- - 15.24% 14.38% 14.96%
Milton was established as a private investment vehicle for four
shareholders in 1938. It became a public company in 1950 and listed
on the Sydney Stock Exchange in 1958. Milton is listed on the Australian
Securities Exchange under the code MLT.
Milton’s objective is to hold a diversified portfolio of assets that
generates a growing income stream for distribution to shareholders in
the form of increasing fully franked dividends and provides capital
growth in the value of the shareholders’ investments.
Milton is predominantly a long term investor in companies and trusts
that are well managed, with a profitable history and an expectation of
increasing dividends and distributions. Turnover of investments is low
and capital gains arising from disposals are reinvested. Milton holds
liquid assets such as cash and term deposits and it may invest in hybrid
securities as well as real property development through joint ventures.
Total
Return5.05% 7.26% 6.34% 13.09% 10.70%
$4.10
$4.30
$4.50
$4.70
$4.90
Jan-15 Apr-15 Jul-15 Oct-15
LIC Snapshot Macquarie Wealth Management Research
Page 29 of 39
Platinum Asia Investments LimitedDetails
Stock code PAI
Last Price - 31 Dec 15 $1.03
Pre-Tax NTA - 31 Dec 15 $0.96
Premium/discount to NTA 6.84%
Premium/discount avg (5yr) 1.68%
Securities on issue 293,111,249
Market cap (m) $283
Listed option code PAIO
Listed options on issue 292,628,046
Management Fee 1.10%
Performance Fee Yes
Internal / external mgmt External
Dividends (past 12mth) $0.00
Dividend Yield (past 12mth) 0.0%
Franking level (past 12mth) 0.0%
Gross dividend yield (past 12mth) 0.0%
DRP No
DRP discount n/a
Dividend frequency None
Value traded 1 mth ($m) 4.3
Value traded 12 mth ($m) 25.5
Average spread (%) 0.71
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
PAI price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = MSCI All Country Asia ex Japan Net Index (A$)
Performance fee = 0.15
Stand
Dev.**- - - - -
Platinum Asia Investments Limited (PAI) provides investors with an
opportunity to invest in an ASX listed investment company which aims
to give investors exposure to an actively managed, diversified portfolio
of attractive companies in the Asian Region ex Japan.
The company will invest primarily in listed securities of companies in the
Asian Region ex Japan. Shareholders may expect the portfolio to
contain listed companies based in China, Hong Kong, Taiwan, South
Korea, Malaysia, Singapore, India, Thailand, Indonesia, Philippines, Sri
Lanka, Pakistan and Vietnam. The company may also invest up to 15%
of its NAV (at the time of investment) in unlisted securities of companies
in the Asian Region ex Japan. Such investments may include, for
example, shares in a pre-IPO company. However, unlisted securities do
not form part of the company's core investment strategy.
Total
Return-0.96% 4.04% - - -
$0.95
$0.98
$1.01
$1.04
$1.07
$1.10
Jan-15 Apr-15 Jul-15 Oct-15
LIC Snapshot Macquarie Wealth Management Research
Page 30 of 39
PM Capital Global Opportunities Fund LimitedDetails
Stock code PGF
Last Price - 31 Dec 15 $1.01
Pre-Tax NTA - 31 Dec 15 $1.16
Premium/discount to NTA -12.61%
Premium/discount avg (5yr) -7.15%
Securities on issue 347,344,401
Market cap (m) $314
Listed option code n/a
Listed options on issue n/a
Management Fee 1.00%
Performance Fee Yes
Internal / external mgmt External
Dividends (past 12mth) $0.00
Dividend Yield (past 12mth) 0.0%
Franking level (past 12mth) 0.0%
Gross dividend yield (past 12mth) 0.0%
DRP No
DRP discount n/a
Dividend frequency None
Value traded 1 mth ($m) 4.2
Value traded 12 mth ($m) 144.0
Average spread (%) 0.56
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
PGF price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = MSCI World Index (AUD)
Performance fee = 15% of outperformance above the benchmark
Stand
Dev.**- - 16.14% - -
PGF’s investment objective is to provide long term capital growth over a
seven-year-plus investment horizon by investing in global markets.
According to the investment guidelines, the portfolio should hold
approximately 40 global listed stocks with no individual position
exceeding 10% of the portfolio weighting. There are no geographical
restrictions, while industry sectors are limited to the greater of 35% of
the portfolio or three times sector weight within MSCI World Index ($A).
While a majority of the portfolio will be invested in globally listed stocks,
the company may also invest in unlisted securities, interest bearing debt
securities, managed investment schemes, derivatives, deposit products
and cash.
The portfolio is able to short-sell securities and use leverage to enhance
returns. The maximum short proportion and leverage allowed by the
company is 30% of the portfolio’s market value. PGF pays a
management fee of 1.0% per annum (payable on a quarterly basis) to
the investment manager. The performance fee equates to 15% of any
outperformance over the benchmark (MSCI World Index (AUD)).
Total
Return-3.81% 2.02% -5.16% - -
$0.90
$0.95
$1.00
$1.05
$1.10
$1.15
Jan-15 Apr-15 Jul-15 Oct-15
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Perpetual Equity Investment Company LimitedDetails
Stock code PIC
Last Price - 31 Dec 15 $0.98
Pre-Tax NTA - 31 Dec 15 $1.05
Premium/discount to NTA -7.41%
Premium/discount avg (5yr) -4.66%
Securities on issue 251,142,374
Market cap (m) $239
Listed option code PICO
Listed options on issue 249,723,277
Management Fee 1.00%
Performance Fee No
Internal / external mgmt External
Dividends (past 12mth) $0.01
Dividend Yield (past 12mth) 0.5%
Franking level (past 12mth) 100.0%
Gross dividend yield (past 12mth) 0.7%
DRP Yes
DRP discount 2.5%
Dividend frequency Irreg
Value traded 1 mth ($m) 1.8
Value traded 12 mth ($m) 57.7
Average spread (%) 0.66
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
PIC price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
25/08/2015 0.50 100 10/09/2015 F 0.93
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = S&P ASX 300 Accumulation Index
Performance fee = None
Stand
Dev.**- - - - -
Perpetual Equity Investment Company Limited (PIC) is a listed
investment company (LIC) with an objective to provide investors with a
growing income stream and long-term capital growth in excess of its
benchmark over minimum 5 year investment periods. The company has
a flexible mandate to invest in both global and domestic securities
which will result in the portfolio materially departing from PIC's
benchmark, the S&P/ASX 300 Accumulation Index. The ASX 300
benchmark was selected to represent the opportunity cost of only
investing in Australian equities with the manager seeking to add value
above Australian equity market return.
The company's investment strategy is to create a concentrated and
actively managed portfolio of Australian securities with a mid-cap focus
outside the 20 largest ASX companies by market capitalisation. The
allocation to global listed securities will be opportunistic in nature and
the global listed securities portion is not expected to have any
consistent capitalisation bias, but will be larger and more liquid than
comparable Australian entities. Companies are selected on four key
quality criteria: sound management; conservative debt; quality of the
business; and recurring earnings (where applicable). The portfolio is
expected to be concentrated in 20-40 securities, but the manager will
diversify the portfolio across industry sectors and offshore investments.
Up to 25% of the portfolio’s net asset value may be held in cash,
deposit products and senior debt with less than one year to maturity
with this cash portfion of the portfolio only likely to be reached as equity
markets become very expensive.
Total
Return-1.52% 2.63% 0.00% - -
$0.90
$0.93
$0.96
$0.99
$1.02
$1.05
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Platinum Capital LimitedDetails
Stock code PMC
Last Price - 31 Dec 15 $1.90
Pre-Tax NTA - 31 Dec 15 $1.58
Premium/discount to NTA 20.25%
Premium/discount avg (5yr) 1.51%
Securities on issue 234,571,212
Market cap (m) $425
Listed option code n/a
Listed options on issue n/a
Management Fee 1.50%
Performance Fee Yes
Internal / external mgmt Internal
Dividends (past 12mth) $0.11
Dividend Yield (past 12mth) 5.8%
Franking level (past 12mth) 100.0%
Gross dividend yield (past 12mth) 8.3%
DRP Yes
DRP discount 2.5%
Dividend frequency Semi-annual
Value traded 1 mth ($m) 4.6
Value traded 12 mth ($m) 106.3
Average spread (%) 0.41
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
PMC price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
18/08/2015 6.00 100 11/09/2015 F 1.82
18/02/2015 5.00 100 13/03/2015 I 1.73
21/08/2014 5.00 100 8/09/2014 F 1.74
18/02/2014 3.00 100 10/03/2014 I 1.75
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = MSCI All country World Net Index in A$
Performance fee = 10% of O/P above the benchmark, plus 5% hurdle
Stand
Dev.**- - 21.90% 21.53% 21.77%
PMC aims to provide capital growth by investing in undervalued large
and mid-cap international stocks. The portfolio can hold up to 150
stocks and also enter into short positions over indices or stocks that the
manager perceives as overvalued. PMC seeks absolute returns from a
bottom-up stock selected portfolio and consequently the holdings may
show little resemblance to the benchmark (MSCI AC World Net Index).
The large number of holdings across different regions provides
diversification, reducing the adverse impact of an incorrect investment
call. Portfolio sector weightings are not constrained, hence the sector
weightings can fluctuate to reflect the manager’s views.
PMC actively manages currency to generate additional return.
Derivatives (equity swaps, futures and options) are used for risk
management purposes and the limits are reviewed by the board. The
company does not generally enter or trade derivatives for speculative
purposes. A 10% outperformance fee applies on the amount the
portfolio outperforms the benchmark by 5% hurdle.
Total
Return1.33% 2.15% 10.44% 26.76% 9.00%
$1.60
$1.68
$1.76
$1.84
$1.92
$2.00
Jan-15 Apr-15 Jul-15 Oct-15
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QV Equities LimitedDetails
Stock code QVE
Last Price - 31 Dec 15 $1.04
Pre-Tax NTA - 31 Dec 15 $1.08
Premium/discount to NTA -3.82%
Premium/discount avg (5yr) -0.11%
Securities on issue 203,380,220
Market cap (m) $204
Listed option code QVEO
Listed options on issue 165,861,581
Management Fee 0.90%
Performance Fee No
Internal / external mgmt External
Dividends (past 12mth) $0.02
Dividend Yield (past 12mth) 1.9%
Franking level (past 12mth) 100.0%
Gross dividend yield (past 12mth) 2.8%
DRP No
DRP discount n/a
Dividend frequency Irreg
Value traded 1 mth ($m) 3.1
Value traded 12 mth ($m) 47.1
Average spread (%) 0.79
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
QVE price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
13/10/2015 1.50 100 6/11/2015 F
16/03/2015 0.50 100 2/04/2015 I
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = S&P ASX 300 Accumulation Index
Performance fee = None
Stand
Dev.**- - 17.01% - -
QV Equities Limited (QVE) provides investment in ASX listed entities
outside the S&P/ASX 20 Index with the aim of providing long-term
capital growth and income over a five year plus investment period. The
company's manager is Investors Mutual Limited. The company's
investment strategy is to create a diversified portfolio of ASX listed
securities outside the S&P/ASX 20 Index. The company aims to
predominantly invest in the S&P/ASX 300 Index and the portfolio may
also invest up to 5% in unlisted securities, derivatives and cash
securities.
The Manager has a long-term focus with a belief that short-term
volatility can create opportunities to build positions in high quality
companies which will reflect their value in the long-term. A qualitative,
bottom-up, value approach is employed. The Manager looks to invest in
entities with four clear quality characteristics: a competitive advantage
over their peers; recurring, predictable earnings; a capable management
team; and the ability to grow over time. Additionally, from a valuation
perspective, the Manager believes that it is important that such entities
be trading at a price below what it believes represents the long-term
underlying value of the entity. The portfolio is primarily managed by
Anton Tagliaferro (Chief Investment Manager) and Simon Conn (Senior
Portfolio Manager) from Investors Mutual.
Total
Return1.47% 2.44% 1.44% - -
$0.95
$0.99
$1.03
$1.07
$1.11
$1.15
Jan-15 Apr-15 Jul-15 Oct-15
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Page 34 of 39
Templeton Global Growth Fund LimitedDetails
Stock code TGG
Last Price - 31 Dec 15 $1.23
Pre-Tax NTA - 31 Dec 15 $1.39
Premium/discount to NTA -11.76%
Premium/discount avg (5yr) -11.40%
Securities on issue 249,660,311
Market cap (m) $287
Listed option code n/a
Listed options on issue n/a
Management Fee 1.00%
Performance Fee No
Internal / external mgmt Internal
Dividends (past 12mth) $0.04
Dividend Yield (past 12mth) 3.3%
Franking level (past 12mth) 58.5%
Gross dividend yield (past 12mth) 4.2%
DRP Yes
DRP discount 2.5%
Dividend frequency Annual
Value traded 1 mth ($m) 3.4
Value traded 12 mth ($m) 59.0
Average spread (%) 0.85
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
TGG price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
9/09/2015 4.10 17 25/09/2015 F 1.2591
10/09/2014 3.50 100 26/09/2014 F 1.3159
9/09/2013 2.50 100 27/09/2013 F 1.1557
7/09/2012 1.50 100 28/09/2012 F 0.7234
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = MSCI All Country World Index
Performance fee = None
Stand
Dev.**- - 18.92% 18.77% 20.33%
TGG’s investment objective is to achieve long term capital growth from
a globally diversified portfolio of investment securities. The portfolio
holds approximately 40 stocks and diversifies risk by allocating roughly
equal weighting to each holding. TGG selects value stocks via a bottom-
up stock selection process identifying stocks trading at a discount to
assessed value. TGG adopts a ‘buy and hold’ investment philosophy,
whereby securities are typically held for five years or more, with the
expectation that the market will recognise valuation gaps over time.
With no geographic limits on the allocation, the portfolio can move away
from the benchmark country/sector weightings.
The portfolio is unhedged and is impacted by movements in the foreign
exchange markets. Appreciation of the $A would reduce the value of
the portfolio expressed in $A. TGG’s annual management fee is 1.00%
of the value of the fund’s assets. There is no performance fee.
Total
Return-2.77% -5.38% -9.36% 20.36% 11.62%
$1.10
$1.18
$1.26
$1.34
$1.42
$1.50
Jan-15 Apr-15 Jul-15 Oct-15
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WAM Capital LimitedDetails
Stock code WAM
Last Price - 31 Dec 15 $2.12
Pre-Tax NTA - 31 Dec 15 $1.96
Premium/discount to NTA 8.38%
Premium/discount avg (5yr) 0.38%
Securities on issue 468,006,885
Market cap (m) $983
Listed option code n/a
Listed options on issue n/a
Management Fee 1.00%
Performance Fee Yes
Internal / external mgmt External
Dividends (past 12mth) $0.14
Dividend Yield (past 12mth) 6.6%
Franking level (past 12mth) 100.0%
Gross dividend yield (past 12mth) 9.4%
DRP Yes
DRP discount 2.5%
Dividend frequency Semi-annual
Value traded 1 mth ($m) 13.9
Value traded 12 mth ($m) 246.4
Average spread (%) 0.57
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
WAM price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
19/10/2015 7.00 100 30/10/2015 F 1.9186
20/04/2015 7.00 100 30/04/2015 I 1.9154
7/10/2014 6.50 100 17/10/2014 F 1.8903
18/03/2014 6.50 100 31/03/2014 I 1.9432
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = S&P ASX All Ord Accu. Index
Performance fee = 20% of outperformance above the benchmark
Stand
Dev.**- - 13.94% 13.86% 16.01%
WAM Capital Limited (WAM) is a listed investment company managed
by Wilson Asset Management (International) Pty Limited. WAM provides
investors exposure to an actively managed diversified portfolio of
undervalued growth companies which are generally found in the small
to medium industrial sector; and also provides exposure to relative value
arbitrages and market mispricing opportunities. The investment
objectives are to deliver investors a rising stream of fully franked
dividends, to provide capital growth and preserve capital.
WAM has two investment principal factors determining the investment
decisions of the company, being (i) Research Driven, the company buys
shares in companies after extensive research, focused on free cashflow
then rating the company with respect to management, earnings growth
potential, valuation and industry position. The company sells once the
company reaches the valuation. (ii) Market Driven, the company scours
the market for trading opportunities including IPO's, placement, block
trades, rights issues, corporate transactions (such as takeovers,
mergers, schemes of arrangement, corporate spin-offs, restructurings),
arbitrage opportunities.
Total
Return3.92% 9.50% 12.44% 14.55% 13.60%
$1.90
$1.96
$2.02
$2.08
$2.14
$2.20
Jan-15 Apr-15 Jul-15 Oct-15
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WAM Research LimitedDetails
Stock code WAX
Last Price - 31 Dec 15 $1.29
Pre-Tax NTA - 31 Dec 15 $1.23
Premium/discount to NTA 4.83%
Premium/discount avg (5yr) -3.99%
Securities on issue 172,768,120
Market cap (m) $222
Listed option code n/a
Listed options on issue n/a
Management Fee 1.00%
Performance Fee Yes
Internal / external mgmt External
Dividends (past 12mth) $0.08
Dividend Yield (past 12mth) 6.2%
Franking level (past 12mth) 100.0%
Gross dividend yield (past 12mth) 8.9%
DRP Yes
DRP discount 2.5%
Dividend frequency Semi-annual
Value traded 1 mth ($m) 3.7
Value traded 12 mth ($m) 45.4
Average spread (%) 0.51
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
WAX price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
12/10/2015 4.00 100 23/10/2015 F 1.1932
18/05/2015 4.00 100 28/05/2015 I 1.1362
13/10/2014 3.75 100 24/10/2014 F 1.097
11/04/2014 3.75 100 30/04/2014 I 1.122
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = S&P ASX All Ord. Accumulation Index
Performance fee = 20% of outperformance above the benchmark
Stand
Dev.**- - 15.14% 17.04% 18.29%
WAM Research Limited (WAX) is a Listed Investment Company
managed by Wilson Asset Management Group. WAM Research Limited
(WAX) is a listed investment company that invests in undervalued
growth companies, primarily small to medium sized industrial
companies listed on the ASX.
The investment objectives are to provide a growing stream of fully
franked dividends and to achieve a high real rate of return, comprising
both income and capital growth, within risk parameters acceptable to
the Directors. WAX investment strategy is research driven investing,
focusing on the free cashflow then rating the company with respect to
management, earnings growth potential, valuation and industry position.
Total
Return1.98% 5.98% 18.10% 18.52% 18.06%
$1.10
$1.16
$1.22
$1.28
$1.34
$1.40
Jan-15 Apr-15 Jul-15 Oct-15
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Whitefield LimitedDetails
Stock code WHF
Last Price - 31 Dec 15 $4.34
Pre-Tax NTA - 31 Dec 15 $4.79
Premium/discount to NTA -9.39%
Premium/discount avg (5yr) -8.62%
Securities on issue 80,208,773
Market cap (m) $323
Listed option code n/a
Listed options on issue n/a
Management Fee 0.35%
Performance Fee No
Internal / external mgmt External
Dividends (past 12mth) $0.17
Dividend Yield (past 12mth) 3.9%
Franking level (past 12mth) 100.0%
Gross dividend yield (past 12mth) 5.6%
DRP Yes
DRP discount 2.5%
Dividend frequency Semi-annual
Value traded 1 mth ($m) 2.1
Value traded 12 mth ($m) 27.9
Average spread (%) 0.58
Source: MWM Research, IRESS (19/01/16)
Share Price Performance & Volatility (18 January 2016)
1 Mth 3 Mth 1 Year 3 Year* 5 Year*
WHF price history
Recent Dividends
Ex DateDividend
(cps)
Franking
(%)Pay Date Div Type DRP($)
20/11/2015 8.50 100 11/12/2015 I 4.06
22/05/2015 8.50 100 12/06/2015 F 4.45
20/11/2014 8.50 100 12/12/2014 I 4.05
26/05/2014 8.50 100 13/06/2014 F 4.03
Source: MWM Research, IRESS Source: MWM Research, IRESS
* Total Return and Standard Deviation are annualised
** Standard Deviation is a measure of volatility on the share price movements, a higher
standard deviation suggests greater variance away from its mean.
Benchmark = S&P ASX 200 All Industrials Index
Performance fee = None
Stand
Dev.**- - 17.93% 15.41% 16.80%
Whitefield Limited (WHF) is an investment company focusing on
investment in a portfolio of diversified industrial (non-resource)
companies listed on the Australian Stock Exchange.
Whitefield aims to generate an investment return which is in excess of
the return of the All Industrials Accumulation Index over the long term
from investment in a portfolio of industrial shares listed on the Australian
Stock Exchange. Whitefield seeks to hold investments which are
realistically capable of generating a robust and sufficient rate of return
through the satisfactory delivery of future earnings over a few years. The
company holds a diversified investment portfolio containing
approximately 60 holdings, with exposure across the major economic
segments of the Australian industrial (non-resource) market.
Total
Return3.83% 6.63% 6.62% 16.21% 12.35%
$3.90
$4.10
$4.30
$4.50
$4.70
$4.90
Jan-15 Apr-15 Jul-15 Oct-15
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Disclaimer
Listed Investment Companies was finalised 19 January 2016.
Analyst Certification: The views expressed in this research reflect the personal views of the analyst(s) about the subject securities or issuers
and no part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations
or views in this research. The analyst principally responsible for the preparation of this research receives compensation based on overall
revenues of Macquarie Group Ltd (ABN 94 122 169 279, AFSL No. 318062) (“MGL”) and its related entities (the “Macquarie Group”) and has
taken reasonable care to achieve and maintain independence and objectivity in making any recommendations.
General Disclosure: This research has been issued and distributed in Australia by Macquarie Equities Limited ABN 41 002 574 923 ("MEL").
MEL holds Australian Financial Services Licence No. 237504 and is a Participant of the Australian Securities Exchange Group. MEL is not an
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liabilities of Macquarie Bank Limited ABN 46 008 583 542. Macquarie Bank Limited does not guarantee or otherwise provide assurance in
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