Money Management Online

20-May-2009

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LICs becoming attractive
20 May 2009 | by John Wilkinson

The dramatic fall of the local stock market has created long-term investment opportunities for listed investment companies (LICs), according to Treasury Group chief executive officer Mark Burgess.

The fall in the share price of LICs has made them attractive investments, but when combined with stored franking credits, Burgess argues, it is time to revisit the sector.

“The difference between the NTA per share and the market share price has grown to 30 to 40 per
cent discount,” he said.

Treasury Group’s Premium Investors LIC has a NTA per share of 83.4 cents (in March this year),
compared to a share price of about 50 cents.

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