Summary :
This week, MCP Income Opportunities Trust (ASX:MOT) led the sector with a running yield of 9.10%, followed closely by KKR Credit Income Fund (ASX:KKC) at 8.87%, and WAM Alternative Assets (ASX:WMA) at 8.18%. These high-yielding trusts remain attractive to income-focused investors seeking consistent returns in a shifting interest rate environment.
Valuation metrics reveal contrasting investor sentiment. Perpetual Credit Income Trust (ASX:PCI) traded at a 9.50% premium to Net Tangible Assets (NTA), signaling strong market confidence. Meanwhile, Glennon Small Companies (ASX:GC1) and Acorn Capital Investment Fund (ASX:ACQ) are trading at steep discounts of -34.06% and -16.07% respectively, potentially offering value opportunities for contrarian investors.
Liquidity remains a key factor for institutional and retail investors. MCP Master Trust (ASX:MXT) recorded the highest average daily turnover on the ASX at 1.087 million units, followed by PCI and MOT, indicating robust market activity and investor engagement. In contrast, smaller LICs like Katana Capital (ASX:KAT) and GC1 showed limited trading volumes, which may impact price stability and entry/exit strategies.
Overall, the LICATs sector continues to offer a compelling mix of high-yield investment options, discounted asset opportunities, and strong market liquidity. Investors are advised to monitor both yield and NTA premiums/discounts when evaluating portfolio additions, especially as year-end positioning intensifies.
LICATs Weekly Summary
Name Code Closing Price Running Yield NTA Premium/(discount) to NTA Market Capitalisation (millions) Average Daily ASX turnover (000s) Acorn Capital Investment Fund ACQ $0.93 0.07 1.10 -0.16 82.88 56 Glennon Small Companies GC1 $0.52 0.07 0.79 -0.34 25.24 31 Katana Capital KAT $1.34 0.02 1.34 0.00 42.75 7 KKR Credit Income Fund KKC $2.26 0.09 2.46 -0.08 728.93 431 MCP Income Opportunities Trust MOT $1.87 0.09 2.15 -0.13 623.10 397 MCP Master Trust MXT $1.93 0.08 2.01 -0.04 2360.57 1,087 Perpetual Credit Income Trust PCI $1.21 0.07 1.11 0.10 589.22 505 Qualitas Real Estate Income Fund QRI $1.62 0.08 1.61 0.00 1148.00 283 WAM Alternative Assets WMA $1.00 0.08 1.19 -0.17 196.01 209
Closing price as of the end of the week.