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Article: AUSTRALIAN LISTED INVESTMENT COS DEFEND BELOW-BENCHMARK REPORT.
- Article from:
- AsiaPulse News
- Article date:
- November 16, 2007
CopyrightCOPYRIGHT 2007 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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SYDNEY, Nov 16 Asia Pulse - Investors that bought listed investment companies (LICs) to chase above-benchmark returns in the current bull market will be licking their wounds.
The share portfolios and the share price of about 80 per cent of Australia's LICs underperformed the All Ordinaries index in the last three years, according to broker Goldman Sachs JBWere.
But the heads of the country's two biggest LICs have come to the sector's defence.
"There's a seriously big explanation, and it's called the resources boom," Argo Investments Ltd (ASX:ARG) chief executive Rob Patterson said.
He explained that LICs traditionally go underweight in ...