Summary
Weekly Commentary: LICAT’s Performance Overview
This week’s LICATs data reveals a mixed landscape across the sector, with notable movements in yield, NTA premiums/discounts, and trading activity.
Top Performers by Running Yield
- MCP Income Opportunities Trust (MOT) led the pack with a running yield of 9.07%, closely followed by KKR Credit Income Fund (KKC) at 8.83%, and WAM Alternative Assets (WMA) at 8.06%. These high yields may attract income-focused investors, especially given the current interest rate environment.
Premiums & Discounts to NTA
- Perpetual Credit Income Trust (PCI) traded at a 9.05% premium to NTA, the highest among the group, indicating strong investor confidence.
- Conversely, Glennon Small Companies (GC1) showed the deepest discount to NTA at -34.69%, suggesting potential value opportunities or market skepticism.
Market Capitalisation & Liquidity
- MCP Master Trust (MXT) remains the largest by market cap at $2.37 billion, with the highest average daily ASX turnover of 1,087,000 units, reflecting strong investor interest and liquidity.
- KKR Credit Income Fund (KKC) and Qualitas Real Estate Income Fund (QRI) also showed robust market caps of $729 million and $1.13 billion, respectively.
Noteworthy Observations
- Katana Capital (KAT) was the only LIC trading at a premium to NTA (2.62%) besides PCI, despite having a relatively low yield of 1.95%.
- Acorn Capital Investment Fund (ACQ) and MOT also traded at discounts, but maintained competitive yields above 6.5%, which may appeal to bargain hunters.
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 $0.96 0.07 1.10 -0.13 86.03 56 Glennon Small Companies GC1 $0.52 0.07 0.79 -0.35 25.97 31 Katana Capital KAT $1.37 0.02 1.34 0.03 43.74 7 KKR Credit Income Fund KKC $2.27 0.09 2.46 -0.08 729.04 431 MCP Income Opportunities Trust MOT $1.92 0.09 2.15 -0.11 643.19 397 MCP Master Trust MXT $1.96 0.08 2.01 -0.02 2373.17 1,087 Perpetual Credit Income Trust PCI $1.21 0.07 1.11 0.09 589.31 505 Qualitas Real Estate Income Fund QRI $1.59 0.08 1.61 -0.01 1130.40 283 WAM Alternative Assets WMA $1.01 0.08 1.19 -0.15 198.06 209
Closing price as of the end of the week.