LICs and LITs are close-ended structures that are admitted under the ASX Listing Rules. This means that they are restricted by how many new securities they can create, and by how many securities they can cancel on an annual basis. Unlike open-ended ETPs which can accept applications for new units continuously, LICs and LITs have fixed periods in which they can raise new capital, such as through an initial public offering (IPO) or a subsequent capital raising such as a placement or entitlement offer. LICs are public companies, while LITs are trusts that generally take the form of an Australian Managed Investment Scheme (MIS).
LICs and LITs
LICs and LITs are admitted under the ASX listing rules similarly to listed companies.