Home ETFs LIC/LIT Monthly – September 2021

LIC/LIT Monthly – September 2021


Capital raising announcements over the month that may raise up to a maximum of approximately $975m and several more de-listings. Partly a portent of the way the sector will likely move, with a number of the LICs/LITs that raised capital being very much ideally suited to the closed ended structure. They have utilised that structure well, and they are ‘thriving’. It is this direction the sector will ultimately move, just as it did in the UK post that country’s abolition of stamping fees many moons ago. Namely, the progressive move to asset classes and strategies ideally suited to a close ended structure (read generally away from equities).

PGF proposes a merger with sister LIC PAF only to have WAM counter bid, utilising its premium to NTA ‘currency’. The irony is PM Capital may now be in the unenviable position to counter. The problem is if PGF counters on PAF materially in excess of the PAF NTA, which it may ultimately have to do, it will prove dilutive. In the interim, PAF shareholders may be able to sit back and enjoy (or crystallise value through) the ride.

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LIC Monthly Sept 2021