Summary
Weekly Commentary: LICAT’s Performance Overview
This week’s LICATs data highlights a mixed landscape across the sector, with notable variations in premiums/discounts to Net Tangible Assets (NTA), running yields, and market activity.
Top Yield Performers
- MCP Income Opportunities Trust (MOT) and KKR Credit Income Fund (KKC) led the pack with running yields of 9.07%, indicating strong income generation potential.
- MCP Master Trust (MXT) followed closely with an 8.04% yield, reinforcing the appeal of credit-focused trusts in the current environment.
Premiums & Discounts to NTA
- Most LICATs traded at a discount to NTA, suggesting potential value opportunities for investors:
- Glennon Small Companies (GC1) showed the steepest discount at -34.06%, possibly reflecting market skepticism or undervaluation.
- WAM Alternative Assets (WMA) and Acorn Capital Investment Fund (ACQ) also traded at significant discounts of -12.82% and -11.53%, respectively.
- In contrast, Perpetual Credit Income Trust (PCI) traded at a premium of 8.14%, indicating strong investor confidence.
Market Capitalisation & Liquidity
- MCP Master Trust (MXT) stood out with the highest market cap of $2.37 billion and the most active trading volume, averaging 1.087 million shares daily.
- KKR Credit Income Fund (KKC) and Qualitas Real Estate Income Fund (QRI) also maintained robust market caps of $712.8 million and $977.9 million, respectively.
- Smaller LICs like Glennon Small Companies (GC1) and Katana Capital (KAT) had lower market caps and turnover, reflecting their niche positioning.
Price Movements & Valuations
- Katana Capital (KAT) was one of the few trading at a premium to NTA (2.62%), despite a modest yield of 1.95%, suggesting investor interest beyond income metrics.
- Acorn Capital Investment Fund (ACQ) and GC1 had relatively low closing prices ($0.97 and $0.52, respectively), which may attract retail investors seeking entry-level exposure.
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 $0.98 0.06 1.10 -0.12 87.36 56 Glennon Small Companies GC1 $0.52 0.07 0.79 -0.34 25.24 31 Katana Capital KAT $1.37 0.02 1.34 0.03 43.74 7 KKR Credit Income Fund KKC $2.21 0.09 2.46 -0.10 712.80 431 MCP Income Opportunities Trust MOT $1.92 0.09 2.15 -0.11 639.76 397 MCP Master Trust MXT $1.94 0.08 2.01 -0.03 2372.80 1,087 Perpetual Credit Income Trust PCI $1.20 0.07 1.11 0.08 581.92 505 Qualitas Real Estate Income Fund QRI $1.61 0.08 1.61 0.00 977.90 283 WAM Alternative Assets WMA $1.04 0.08 1.19 -0.13 204.42 209
Closing price as of the end of the week.