Ann: Daily share buy-back notice - Appendix 3E, page-25

I think the LIT structure is a big reason for the discount. Just like unlisted managed funds and listed active ETFs ( eg AASF Airlie Australian share fund ) , shareholders in LITs get messy annual tax statements after July including distributed capital gains which they need to declare on their tax return
, even if sitting on paper loss on the share purchase, and even if they were silly enough to buy in late June.
And just LICs, LITs are prone to discounts or premiums to NAV.
But LICs pay out only dividends and franking credits, simple. And unlisted managed funds and active ETFs always trade at or very close to NAV.
So LITs have the disadvantages of both LICs and active ETFs but the advantages of neither .
I fail to see why a fund manager would choose to run a LIT.