Not quite what I thought. Having just listened to the teleconference, I'll answer my own question. While the market maker sets the buy and sell prices and facilitates the trade, ultimately it is the trust manager who is responsible for paying out excess redemptions using the fund assets or issuing new units if there are more buyers. Redemptions ideally from cash but in some conditions the manager may have to sell fund assets to raise that cash. Yes, just like an unlisted unit trust,
This was the main objection raised (starts around 39 min), in that it is no longer a closed end structure, which was of course one of the a big selling point for LICs in the first place. A lot of discussion on this, with Clitheroe admitting some would not be happy, but reckons the majority will be. Interestingly he also said that the board and manager would not be concerned if the vote was to remain a LIC.
MA1 Price at posting:
94.5¢ Sentiment: Hold Disclosure: Held
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(20min delay)