Ann: Becoming a substantial holder, page-9

Fund managers hate giving up capital locked in closed vehicles. It's their holy grail of fees.

I can only think of a couple, like Monash, that caved to investor pressure.

Personally, although LICs\LITS have some good qualities, they also have far greater disadvantages.

In some respects it's the easiest way to tell where a managers loyalty lies. If you have a fund persistently trading well below NAV for years - and they don't effectively deal with - you know you are trapped with the wrong manager.

Stricter rules are required for these investment types, which mandate a wind up/conversion when there is persistent trading at a high discount.