The $50 billion listed investment company sector is a hotbed of consolidation as one big player and smaller groups of shareholder activists crank up the pressure on boards to close the widespread discounts to net tangible assets.

Proof that the strong are getting stronger and the weak disappearing came on Monday when the Australian Leaders Fund said it would allow shareholders to switch to an unlisted unit trust offering redemptions at NTA and entities managed by Wilson Asset Management made a takeover bid for the Contango Income Generator.