@rollacoaster,good point.  One of the nice things about...

@rollacoaster,

good point.  One of the nice things about most LICs is the consistent dividend stream.  That would be difficult to achieve in a trust.  I have noticed the share index ETFs have very inconsistent distributions and I suppose a LIT would be similar.,

Forager (FOR) is a LIT that is probably a good example BUT it does not have long enough track record to get a feel for the distributions over time.

I wonder if you could build a company/trust hybrid.  The company could own a majority of units in the trust and pay tax on the distributions before redistributing as regular franked dividends as they currently do.  Those affected by the tax refund could  hold the trust units and those that can use the franking credits would hold the shares.  Any pricing anomalies could be addressed by the company buying and selling the trust units.  Of course the cost of running both a LIT and a LIC could be expensive and the structure may be frowned upon by the authorities.   Late night dreaming...