Opinion
After a $15b party, it’s hangover time for these funds
Australia’s closed-end market is more than a hundred years old, and activists have come and gone. But this time the situation is a little different, thanks to a new structure of such funds.
Jonathan ShapiroSenior reporterIf the period from 2015 to 2020 was the party for fund managers and brokers that delivered $15 billion of closed-end funds to the Australian sharemarket, we are now well and truly into the hangover phase.
The closed-end fund boom was stalled by a commission-rule change and smashed by a pandemic-driven liquidity crunch. And now this year, after more market turbulence, billions of dollars of unloved listed investment companies (LICs) and listed investment trusts (LITs) trade at double-digit discounts to their net asset values.
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