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An intriguing theory explaining persistent LIC discounts

The rise of trading discounts in closed-ended funds has challenged investors. This latest research suggests that funds that exhibit high volatility or beta tend to trade at larger discounts to their net tangible asset values. 

Three risk measures provide a fuller LIC picture

Instead of just looking at the historical returns of a Listed Investment Company (LIC), investors should also factor in risk measures such as beta, standard deviation and the Sharpe Ratio when assessing a LIC.

Smart beta: watch the details

Non price-weighted index investment strategies, commonly dubbed 'smart beta', are growing in popularity, but as one fund can be structured differently from the next, are there any features to watch out for?

The biggest rort of all

Market performance and outperformance can come from many sources, but the main thing to watch for is that you're not paying high 'alpha' fees simply to achieve market 'beta' returns.

Most viewed in recent weeks

Indexation implications – key changes to 2026/27 super thresholds

Stay on top of the latest changes to superannuation rates and thresholds for 2026, including increases to transfer balance cap, concessional contributions cap, and non-concessional contributions cap.

Has Australia wasted the last 30 years?

The 20 years after Peter Costello left Treasury have been deemed wasted...by Peter Costello. The missed opportunities for Australia began long before.  

The refinery problem: A different kind of energy crisis in 2026

The Strait of Hormuz closure due to US-Iran conflict severely disrupted global energy supply chains. While various emergency measures mitigated the crude impact, the refined product market faces unprecedented stress.

3 ways to defuse intergenerational anger

With the upcoming budget increasingly likely to include bold proposals to alter the tax code I’ve outlined three incremental steps with fewer unintended consequences.

Navigating the next stage of life in retirement

Retirement planning is more than just saving enough money. Long-term care needs, housing choices, and social networks are just as critical for a happy and enjoyable life.

The missing 30%: how LIC returns are understated, and why it matters

The perceived underperformance of LICs compared to ETFs is due to existing comparison data excluding crucial information, highlighting the need for proper assessment and transparent reporting.

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