I'd say there are two things to take into account. One is that buying the LIC at a discount today is no guarantee that you will come out ahead of the managed fund tomorrow. Secondly, consider the size of the LIC. If it's too small, this can impede both tradability and returns v the managed fund.
Aside from that, if the strategies are a direct replication of each other, you can arguably arbitrage to your heart's content.
