Hi Anthony, Thanks for your question and your interest in our research. A listed investment trust (LIT) is closed ended meaning it has a fixed pool of capital like a LIC. This means the manager doesn’t have inflows or outflows to consider and can focus more on managing the portfolio without thinking about the need to invest new moneys or meet redemptions. Active ETFs, like passive ETFs, are open ended meaning the amount of money under management will rise or fall depending on new fund inflows and outflows. The manager has to issue new units for inflows and redeem units for outflows which may interfere with the efficient management of the investment portfolio. In the case of the active ETF, there is a market maker so this means the unit price should trade close to net asset value, whereas LITs can trade at discounts and premiums, just like LICs. Hope this helps.

On Listed Managed Investments: Quarterly Review -

Hi Peter, Thanks for your comment and your interest in our research. A few points in response. 1. Of the 49 LICs/LITs in our report, only 21 have been listed for 5 years or more and thus have five year track records, so it is perhaps a little misleading to say that only six of the 49 have outperformed as it implies the remaining 43 have underperformed. This is not the case. 2. Not all of the 21 LICs/LITs should be compared with the S&P/ASX All Ordinaries Index. A benchmark relevant to their investment universe is more appropriate. When we compare the performance of the 21 LICs/LITs with a 5 year plus performance history, eight met or exceeded benchmark and 13 underperformed benchmark over the five years. 3. It is important to note that, depending on their investment mandates, actively managed funds will underperform in certain markets and outperform in others. As an example, some of the larger Australian Shares LICs/LITs deliberately underweight the resources sector and so can be expected to underperform during periods of resources market strength. This has happened over the past few years. For many of these LICs/LITs we believe a 10 year period is a better indicator of performance as it covers a full market cycle. 4. 19 of the LICs/LITs in our report have 10 year plus track records. Of these, 13 have matched or beaten their relevant benchmark over the period and six have underperformed. So, whilst it is true that some LICs and LITs have underperformed, a majority have outperformed – some, quite significantly. This highlights the importance of selecting well managed LICs/LITs that have a solid performance track record. 5. ETFs, LICs and LITs all have a place in the investment universe and it is up to individual investors to decide what best suits their own needs. Hope this helps.

On Listed Managed Investments: Quarterly Review -

Hi Tony, All the LIC's and LITs in the report are closed ended, but there are two Active ETFs in the report - K2 Australian Small Cap Fund (KSM) and Switzer Dividend Growth Fund (SWTZ). As ETFs, these funds are open-ended.

On Listed Managed Investments: Quarterly Review -

Hi Ben, Yes this is the latest quarterly report. Once all data has been released by the various LICs for the end of June, we will start preparing the June Quarter Report. Our latest monthly report (June) has just been published today. Regards, Peter.

On Listed Managed Investments: Quarterly Review -

Hi Chez, Thanks for your question. A subscale LIC trading at a large discount could most certainly be a target for a takeover and liquidation scenario. If the LIC is externally managed, liquidation might require co-operation of the manager, depending on management agreement arrangements. We have seen activists move in on underperforming and discounted LICs in the past. Regards Peter

On 13 LICs at a discount -

Hi Graeme, Thanks for you comment/question. I did submit a response to this question last time, albeit with a delay over the Christmas/New Year holiday. So, I'm sorry if you did not see this response. My comments were as follows: "The entities that are noted as “Not Rated” in our Monthly LMI Update are those entities that do not participate in our LIC research scheme but for which we simply provide base information. Importantly we do not have a view on these LICs and therefore there is no rating ascribed. Our LIC research rating scheme applies to those managers who participate in our quarterly rating process. For these participants we collect detailed data on a quarterly basis which underpins their rating. Where it is likely that we may rate an entity as Not Recommended, the Manager has the right to not go ahead with publication and to not participate in our research scheme. In such instances we notify ASIC. These entities will also appear in our tables as Not Rated." For you information, we have also introduced a new rating "Investment Grade" for entities that might not meet our requirements for a Recommended rating but we still consider worthy as an investment.. This hasn't been used yet but gives us an additional rating option. I hope the above helps. Peter

On 13 LICs at a discount -

Hi Graeme, Thanks for your question and our apologies for the delay in responding to you due to the Christmas/New Year break. The entities that are noted as “Not Rated” in our Monthly LMI Update are those entities that do not participate in our LIC research scheme but for which we simply provide base information. Importantly we do not have a view on these LICs and therefore there is no rating ascribed. Our LIC research rating scheme applies to those managers who participate in our quarterly rating process. For these participants we collect detailed data on a quarterly basis which underpins their rating. Where it is likely that we may rate an entity as Not Recommended, the Manager has the right to not go ahead with publication and to not participate in our research scheme. In such instances we notify ASIC. These entities will also appear in our tables as Not Rated. I hope this answers your question.

On A big year for LICs -