Perpetual Investments found 57 per cent of respondents to a survey it conducted at its Perpetual Equity Investment Company roadshow cited the growth of the SMSF market as one of the main drivers behind the “resurgence” in LICs.
“There is increasing demand for LICs because they are transparent and liquid investments and these are features which investors, particularly SMSFs, are seeking,” Perpetual Investments portfolio manager Vince Pezzullo said.
The survey found other drivers included the “capacity to buy directly” and trade on the ASX and 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 [the Perpetual Equity Investment Company, Perpetual Investment’s LIC] on the major wrap platforms and leading dealer group approved product lists,” a statement from Perpetual Investment said.
Mr Pezzullo added that PIC provides investors with a “regular income stream” and its performance can be “easily tracked” through daily NTA reporting.
“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.
