what am I missing?, page-2

In my opinion another issue that the big LIC'S have faced (on top of the obvious rise and rise of ETF'S) is the long running bull market since the GFC (with the exception of a few flash crashes etc.).

Where the management of these companies really gets a chance to show some value is in protracted bear markets where they can (hopefully) maintain their dividend and also maintain capital better than an ETF through active management. Risk management clearly gets no attention in bull markets but it all of a sudden becomes the most important thing in bad times.

I would also think the fully franked dividends would still hold a lot of appeal to many investors compared to ETF'S which are usually only partially franked.