Summary –
The LIC market in July continued to reflect a clear divide between credit-focused trusts and smaller equity LICs. MCP Master Trust (MXT) remained the largest by market cap at $2.52 billion, trading at a modest 2.54% premium to NTA and offering a running yield of 7.67%, underscoring its appeal as a stable income generator. Similarly, Perpetual Credit Income Trust (PCI) and Qualitas Real Estate Income Fund (QRI) held firm with premiums of 5.88% and 1.99%, respectively, supported by strong investor demand for credit and real estate-backed income.
In contrast, equity LICs such as Glennon Small Companies (GC1) and Acorn Capital Investment Fund (ACQ) continued to trade at steep discounts of -30.26% and -25.60%, despite GC1 offering the highest running yield at 6.23%. These discounts, coupled with low turnover, suggest persistent investor caution toward smaller-cap exposures.
Among the credit LICs, KKR Credit Income Fund (KKC), MCP Income Opportunities Trust (MOT), and QRI all delivered yields above 8%, though KKC and MOT traded at slight discounts, indicating selective optimism. Meanwhile, Katana Capital (KAT) and WAM Alternative Assets (WMA) also traded below NTA, with discounts of -5.99% and -16.60%, respectively, reflecting mixed sentiment in alternative and diversified strategies.
Overall, July reinforced the trend: credit LICs continue to attract investor interest through consistent yield and scale, while smaller equity LICs face valuation headwinds despite attractive income metrics.
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 | 0.82 | #N/A | 1.10 | -0.26 | 73.47 | 56 |
| Glennon Small Companies | GC1 | 0.55 | 0.06 | 0.79 | -0.30 | 26.54 | 31 |
| Katana Capital | KAT | 1.255 | 0.02 | 1.34 | -0.06 | 38.57 | 7 |
| KKR Credit Income Fund | KKC | 2.35 | 0.09 | 2.46 | -0.05 | 757.95 | 431 |
| MCP Income Opportunities Trust | MOT | 2.05 | 0.08 | 2.15 | -0.05 | 682.57 | 397 |
| MCP Master Trust | MXT | 2.06 | 0.08 | 2.01 | 0.03 | 2517.47 | 1087 |
| Perpetual Credit Income Trust | PCI | 1.17 | 0.08 | 1.11 | 0.06 | 569.46 | 505 |
| Qualitas Real Estate Income Fund | QRI | 1.64 | 0.08 | 1.61 | 0.02 | 998.58 | 283 |
| WAM Alternative Assets | WMA | 0.995 | 0.08 | 1.19 | -0.17 | 195.57 | 209 |
Closing price as at end of week.