SMSFs driving LIC boom: adviser survey

Financial advisers believe the burgeoning SMSF market is one of the main drivers of growth in listed investment companies, research by Perpetual Investments has found.

In a survey conducted at the Perpetual Equity Investment Company adviser roadshow, Perpetual Investments found 57 per cent of respondents cited the growth of the SMSF market as one of the main drivers “behind the resurgence” of LICs.

Perpetual Investments portfolio manager Vince Pezzullo said despite recent falls in the market, “it is clear” there is still interest in LICs as an investment vehicle among advisers and SMSFs.

“There is increasing demand for LICs because they are transparent and liquid investments and these are features which investors, particularly SMSFs, are seeking,” Mr Pezzullo said.

The survey also found other factors contributing to the growing interest in LICs included “an overall greater understanding of the benefits of LICs".

“The increased appetite for LICs by advisers has also been demonstrated through the inclusion of PIC on the major wrap platforms and leading dealer group approved product lists (APLs),” a statement from Perpetual Investments said.

“Advisers who responded to the survey viewed a regular and growing income stream (67 per cent), long term capital growth (43 per cent) and exposure to international markets (30 per cent) as being among the top three benefits of PIC,” Perpetual Investments said.

SMSFs driving LIC boom: adviser survey
ifa logo

Subscribe to the ifa bulletin

Receive daily online news,analysis, reports and business strategies
By signing up you agree to our Terms of Use and Privacy Policy

Website Notifications

Get notifications in real time and stay up to date with content that matters to you.