Well written and logical overview. Sentiment is a powerful force and the LICs that continue to reward shareholders with stable and growing returns enjoy significant premiums. It is hard for new LICs to get that positive cohort of investor support and maintain it. Those which have personable and straight-talking high profile leaders, whom investors can relate to, rather than faceless managers, obtain and retain investor support - particularly from long-term investors. All adds to 'trust'.
No mention of the fact that old, long established LICs such as AFIC have sufficient accumulated profits to continue paying investors constant dividends through down turns in the market. Their percentage dividend return compared to their price may not look high compared to others, such as WAM Capital, but their safety in hard times makes them valued by long term investors with experience in the market.