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Are the Intelligent Investor funds listed investment companies (LICs)?

Updated yesterday

No. The Intelligent Investor funds are exchange quoted managed funds and often referred to as active ETFs.

Each fund has a market maker (liquidity provider) that ensures it trades at its Net Asset Value (NAV) plus or minus the buy/sell spread when investors are transacting which ensures the Fund will not trade at a premium or discount like an LIC.

The market maker creates and cancels units to accommodate supply and demand. A LIC has a set number of shares on issue (just like a normal listed company) and investors will need to transact with other investors. This is what creates premiums and discounts in LICs.

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