New research finds SMSF growth boosts LIC investment

The growth in the SMSF market is one of the main factors driving greater investment in listed investment companies (LICs), according to a survey by Perpetual.

 

Of the advisers surveyed at the Perpetual Equity Investment Company (PIC) roadshow, 57 per cent listed the growth in SMSFs as one of the key reasons for the increasing popularity of LICs.

The capacity to buy directly and trade on the ASX was the other main reason cited by advisers, also at 57 per cent.

This was followed by a greater understanding overall of the benefits of LICs at 37 per cent.

Perpetual Investments portfolio manager Vince Pezzullo said recent falls in the market have not deterred advisers and SMSF trustees from investing in LICs.

An increased appetite for LICS among advisers is evident from the inclusion of LICs such as PIC on major wrap platforms and the approved product lists of dealer groups, Perpetual said.

“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.

Promoted Content
Recommended by Spike Native Network
MORE FROM NEST EGG
Australian economy, interest rates, Reserve Bank of Australia, Guy Debelle, RBA, Australian interest rate, Australian Dollar, AMP Capital, Shane Oliver, US Federal Reserve, neutral rate of interest
Jul 24 2017
Where are Australian interest rates heading?
Recent remarks from the Reserve Bank of Australia have led some investors to believe a round of quar...
Investment management, wealth management, retirement savings, retirement planning, retirement management, investing for retirement, domestic equities, financial year, good returns,
Jul 24 2017
Three indicators of good returns for this financial year
Global market growth looks sustainable despite equity markets hitting all-time highs, according to a...
Treasury, open banking, open data, bank competition, bank customers, retirement planning, retirement management, retirement savings, wealth management
Jul 24 2017
Treasury looks at open data to improve bank competition
The Australian federal government has said it will investigate how an ‘open banking framework’ c...