Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 189

Update on LIC developments

January’s update on LICs from Independent Investment Research (IIR) includes the reasoning behind recent suspensions of ratings for Hunter Hall and Contango MicroCap, three new funds entering the market, changes afoot for Century Australia plus the regular pricing and performance update.

IIR has suspended its rating for Hunter Hall Global Value (HHV) following the surprise resignation of its CIO. Although there is confidence in the remaining management team, any further loss of key personnel will have a negative impact. The two takeover offers that are in place add another level of uncertainty. HHV’s largest shareholder, Wilson Asset Management has also weighed in, recommending an equal-access share buy-back which has met with resistance.

The suspension of Contango MicroCap’s (CTN’s) rating was prompted by the unusual move to appoint an additional portfolio manager and rebrand away from the Contango name. IIR’s concerns lay with “the potential for differences in style and process to the existing manager”.

Three new ASX listings are detailed:

 

 

  • URB Investments Limited (URB) – is an urban renewal-themed investment company, which will invest in a range of assets, including property and infrastructure, focussing on urban renewal and regeneration.

 

  • The Switzer Dividend Growth Fund (SWTZ) – will be targeting consistent dividend and long-term capital growth by investing in high-yield Australian blue chips.

 

  • Fat Prophets Contrarian Fund – will consist of 15-25 international stocks, selected based on mispricings, plus a small element of short-term trading.

 

Century Australia (CYA) has recommended Wilson Asset Management’s restructure proposal, subject to an independent expert review. Shareholders are expected to vote on the proposal in early-March.

In the pricing and performance update, large cap focused LICs saw improved performance over the last quarter, but remained below index returns over the last 12 months. The current reporting season is also highlighting a trend for lower dividends. Small cap focused LICs performed strongly in the first half of 2016, but weakened in the second. This underperformance is expected to continue over the coming months. International focused LICs performed well on the back of a Trump-led US market rally, despite lower returns from emerging markets.

Access the full paper plus other LIC updates and reviews on our web page, Listed Investment Companies updates.

 

Leisa Bell is Assistant Editor at Cuffelinks.

  •   9 February 2017
  •      
  •   

 

Leave a Comment:

RELATED ARTICLES

Listed Investment Company deals for 2019

Latest LIC and ETF updates

LIC reporting season wrap for 2017

banner

Most viewed in recent weeks

Noel Whittaker’s take on the budget

Marketed as a fix for inequality and housing affordability, the latest budget instead delivers a tangle of tax changes that leave everyday Australians worse off.

Australia has no death duties. Technically.

Australia may not levy formal death duties, but a growing web of tax measures is quietly shaping what wealth passes between generations. Now, the 2026 budget adds another layer.

Lithium's rally is real this time – but no-one trusts it

The lithium rally mirrors the early-2010s tech stock surge, with demand set to double by 2030. Supply has been slow to respond, creating a market deficit for future tech like humanoid robotics and solid-state batteries.

Welcome to Firstlinks Edition 662 with weekend update

The debate over the budget is increasingly shaped by frustration and perceptions of unfairness, rather than clear-eyed assessment of policy outcomes.

How inflation is quietly moving the goalposts on retirement

Inflation doesn’t just raise today’s bills - it quietly increases the amount needed to retire, while simultaneously making it harder to save. Three steps to take before June 30th to improve retirement outcomes.

How to minimise tax with a will

Inheritance tax implications in Australia may surprise some, as poor estate planning without proper wills or trusts can lead to costly tax bills and delays for beneficiaries.

Latest Updates

SMSF strategies

Meg on SMSFs: The CGT changes don’t impact super but what about Div 296 tax decisions?

New CGT rules could tip the scales in the super vs non-super debate. For those facing the Division 296 tax, the case for withdrawing has gotten more complex. A "comparison rate" tool may help assess decisions.

Planning

Testamentary trusts post-budget: Estate planning, tax reform and the ‘death tax’ debate

Proposed Budget changes to taxation are casting new uncertainty over testamentary trusts, prompting closer scrutiny of estate planning structures and the real implications of reforms still taking shape.

Taxation

Income tax and bracket creep

Examining how five "tax cuts" stack up against bracket creep. Why offsets and incremental changes may do little to ease rising average tax burdens, compared to structural reform through indexation over time.  

Exchange traded products

The limits of a quality investing approach in Australia

Quality strategies shine globally, but Australia's concentrated market tells a different story. Limited diversification and sector dominance can constrain the defensive outcomes investors have seen in broader markets.

Investment strategies

Balancing opportunity and complexity

As private markets expand, investors face a growing mix of structures, a stabilising private equity cycle and uneven AI disruption. Fresh questions are being raised about where the real opportunities now sit.

Investment strategies

Why strong returns matter as much as generosity

As EOFY approaches, structured giving offers a tax-effective way to support charities, while allowing donations to grow over time and play a longer-term role in family wealth and legacy planning outcomes.

Investment strategies

The most important investment decision you’ll ever make

Stock picking often gets the spotlight, but research shows asset allocation explains the vast majority of long‑term returns. Understanding your mix of growth and defensive assets is the real key to investment success.

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.