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Listed investment company

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Listed Investment Companies are a closed end investment, meaning that management do not have to worry about people withdrawing funds. If people wish to exit the investment they can simply sell their shares, without affecting the amount of funds under management. This allows for management to take a
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strategy which can result in tax advantages (for example Australia's system of paying capital gains tax on only half of capital gains if an asset is held for 12 months). This strategy also amounts to lower costs for LICs and traditionally lower fees. However, contemporary LICs often take a more
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in the United States. Instead of regularly issuing new shares or canceling shares as investors join and leave the fund, investors buy and sell to each other on the
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Dividends from LICs are paid out as management see fit (as opposed to mandatory distribution of all surplus funds as in unlisted managed funds. (Ross, 2007)
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Viney, C. (2007). Financial institutions, instruments and markets (5th ed.). North Ryde, NSW, Australia: McGraw-Hill Irwin Australia Pty Ltd.
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for investors, while often targeting specific markets, such as international equities, Indian equities, or Chinese property (Viney, 2007).
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Shapiro. (2006). Multinational financial management (8th edn ed.). Hoboken, New Jersey, United States: John Wiley & Sons.
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of the share price which can divert from net tangible assets per share as the market digests related news. (Shapiro, 2006)
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Ross, S. T. (2007). Fundamentals of Corporate Finance (4 ed.). Sydney, NSW, Australia: Mcgraw-Hill Irwin.
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more long term approach to investing if deemed favourable (Viney, 2007).
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This article about an Australian corporation or company is a
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Owners of shares in listed companies must ride out the
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active approach to portfolio management (Ross, 2007).
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Index

Australian
closed-end
collective investment scheme
investment trusts
closed-end funds
ASX
stock exchange
Collective investment schemes
buy and hold
diversification
regulation
Australian Securities Exchange
volatility
Australian Stock Exchange site
v
t
e
Investment management
Investment
fund
structures

Common contractual fund
Exchange-traded fund
Fonds commun de placement
Fund of funds
Index fund
Investment trust
Hedge fund
Labour-sponsored venture capital corporation
Listed investment company
Mutual fund
Offshore fund

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