Carlton Investments Limited

Carlton Investments Limited (CIN) is an Australian Listed Investment Company (LIC) listed on the Australian Stock Exchange (ASX) with the ticker code CIN. Established in 1928, CIN has a long history of actively managing shareholder funds, spanning over 90 years. The company specialises in Australian equities, with a portfolio that includes large and mid-cap companies.

Carlton Investments operates with an internally managed structure, meaning it directly handles its investments without the involvement of an external investment manager.

Carlton Investments Limited (CIN) has a rich history, actively managing shareholder funds for over 90 years. This extensive experience reflects its status as one of the well-established participants in the LIC landscape.

Currently, Carlton Investments Limited has a market capitalisation of approximately $700 million, highlighting its presence as a notable LIC in the Australian market, with a focus on large and mid-cap Australian equities.

When evaluating Carlton Investments Limited (CIN) as an investment choice, consider these key metrics:

• Long-term performance: Assess CIN's long-term performance and its ability to invest in established, well-managed Australian listed entities that provide attractive levels of sustainable income and long-term capital growth.
• Dividend reliability: Examine CIN's investment strategy, which includes companies that enable a high portion of income to be received as fully franked dividends, contributing to sustainable income for shareholders.
• Underlying holdings: Understand the portfolio composition of CIN, which primarily consists of established Australian listed entities that are anticipated to provide sustainable income and long-term capital growth.
• Fees: Consider the cost of investing in CIN. The Management Expense Ratio (MER) for CIN is calculated at a low 0.09%, indicating cost-efficiency for investors.

Carlton Investments Limited aims to invest in established, well-managed Australian listed entities that provide attractive levels of sustainable income and long-term capital growth. The company also focuses on investments that enable a high portion of income to be received as fully franked dividends. With a commitment to long-term investment and prudent portfolio management, CIN is a compelling choice for investors seeking income and capital appreciation.

A Listed Investment Company (LIC) is one type of investment fund structure (i.e. shareholder funds pooled together and invested together, either actively by a manager, or passively). Other types of investment funds include Exchange Traded Funds (ETFs) (which can be both actively managed or passive), Listed Investment Trusts, or Managed Funds.

The different structures have their own positives and negatives, which are dependent on the goals of the investor and their own individual investment structure.

Some of the benefits of the LIC structure (the structure of CIN) include:

• It's a closed-end investment vehicle: Meaning the manager has a fixed pool of capital to invest with a long-term mindset, and doesn't have the risk of fast redemptions by investors in a time of market panic.
• They can smoothen out income to the investors: Which can be beneficial for both tax efficiency and emotional mindset, due to being able to retain profits over time (as compared to the trust structure, which must distribute income and crystallized capital gains to the investor in that financial year).
• The income will most likely be in the form of fully franked dividends: Which is an attractive form for Australian retirees due to the franking system in Australia. Since LICs are companies themselves and pay tax in Australia on profits, they receive franking credits paid on the tax they pay, in addition to the franking credits they receive from their investment portfolio. Well-managed LICs ensure their franking credit reserves are sufficient to pay future fully franked dividends (see 'franking reserves' chart above).