Expert Investor: Understanding LICs and LITs with Magellan Financial Group

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Post-GFC index investing, through ETFs, has become very popular and it’s something we speak a lot about on the show. There has also been a lot of chat about ‘the age of active management being over’.

However, we believe there is certainly a strong role that active management can play in your portfolio, and by popular demand from our community, we’re going to explore active management through Listed Investment Companies and expose you to some of the many amazing money managers in Australia.

To kick off our mini-series, we’re starting with one of the best money-managers in Australia – Magellan Financial Group. Magellan, founded in 2006 by the well-known Hamish Douglass, is a top 100 ASX-listed company, with a strategy to ‘invest in the future’. They buy ‘high-quality global stocks that benefited from the rise of the emerging consumer, the coming of the cashless society, the recovery in US housing, the dominance of business software giants and the arrival of digital consumer platforms, to name just some key themes of the past decade’.

To help us understand what a Listed Investment Company (LIC) is, vs a Listed Investment Trust (LIT) vs Active & Passive ETFs, we sat down with Emma Kirk, who is a Key Account Manager at Magellan.

In this episode you will learn:

  • Differences between LITs vs LICs vs Active ETFs & the benefits/costs of each type
  • Difference between listed and unlisted funds
  • What the saying ‘an inch wide and a mile deep’ means at Magellan

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