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2 great LICs I’d buy for strong total returns // Motley Fool Australia

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I think listed investment companies (LIC) can be a really good way to make good long-termtotal returns if you find good investment managers.

The job of a LIC is to invest in other shares on behalf of shareholders. If they make good investment returns then it should lead to good growth of the share price and usually attractive dividends.

Fees are part of the picture. The higher the fees that the LIC charges, the more that detracts from the LIC’s net returns.

There is a complication to consider with LICs. They sometimes trade at a premium to their net tangible asset (NTA) value and sometimes they trade at a discount. That means you can buy $1 of assets for $0.90 if the NTA discount was 10%. Sometimes LICs trade at a premium, so the…



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