- Switzer Report - https://switzersuperreport.com.au -

3 bargain basement small-cap LICs

Market pricing of Listed Investment Companies can be a weird science. A LIC trades on a persistent, large discount to the value of its underlying portfolio for no good reason.

Discount dilemma

LIC bulls promote this as an opportunity – with a LIC that trades at a 20% discount to its pre-tax Net Tangible Assets (NTA), investors in theory are buying $1 of assets for 80 cents.