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

The strange effect of the 30% minimum capital gains tax

The 30% minimum tax on capital gains sits at the heart of the budget's proposed reforms. Yet the mechanics reveal anomalies that introduce unexpected distortions that raise questions about its design.

High quality businesses are on sale

Beneath the dominance of the ASX's largest stocks, much of the market has been left behind. High-quality companies are now trading at levels rarely seen, offering opportunities for investors willing to look deeper.

Does your will qualify for the discretionary testamentary trust exemption?

Treasury has confirmed the exemption many families were hoping for. But buried in the fine print are two conditions that could leave some wills on the wrong side of the exemption, despite years of careful planning.

Ranking three common retirement strategies

The defining challenge of retirement isn't just about building wealth, it's about converting your lifetime savings into sustainable income. A holistic understanding of different strategies can improve long-term outcomes.

Welcome to Firstlinks Edition 667 with weekend update

The downfall of the giant and three lessons for investors.

  • 18 June 2026

Why Australian shares are falling behind the world

Australia’s market boasts a long record of outperformance, but recent results tell a different story. Is the ASX’s lagging performance a temporary setback or evidence that structural forces will keep global markets ahead?

Latest Updates

Superannuation

Are you making these SMSF mistakes?

After four decades advising investors, there are a few common mistakes I've seen SMSF investors make. From holding too much cash and chasing yield to overtrading and trusting tips. Are these errors costing you?

Retirement

Retirement spending is not one-size-fits-all

New data challenges the idea that Australians are underspending their super. The bigger issue may be helping retirees navigate complexity, make confident decisions and use their savings to support security, wellbeing and choice.

Taxation

The missing link in the CGT debate

A little-noticed consequence of Labor’s tax changes could have implications well beyond investors’ tax bills. The issue raises bigger questions about incentives, capital allocation and the drivers of long-term economic growth.

Investment strategies

The surprising beneficiaries of the AI boom

While markets obsess over AI winners, a larger, more predictable growth engine is forming. A surge in electricity demand and infrastructure build‑out reveals the quiet, durable assets evolving beneath the AI story.

Superannuation

When losses in super become irreplaceable

The notion of 'you can afford more risk' assumes that losses can be replaced. Above a $2.1 million super balance the law says otherwise, and a worked example shows the refill takes decades, or never happens.

Retirement

Why I object to ‘hitting a number’ for retirement

Many investors dream of “hitting their number” and walking into retirement. But what if reaching that milestone is the moment they should be asking the tough questions? After all, there's a lot more to life than a high portfolio value. 

Planning

Does your will qualify for the discretionary testamentary trust exemption?

Treasury has confirmed the exemption many families were hoping for. But buried in the fine print are two conditions that could leave some wills on the wrong side of the exemption, despite years of careful planning.

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.