Glenn Freeman: Geoff, you were talking about the resurgence that we are seeing in listed investment companies. So, there is a number of new LICs coming to market and their popularity with investors is pretty clearly demonstrated. But how popular are they with SMSF trustees.

Geoff Wilson: They are an incredibly popular asset class. When we floated WAM Capital 19 years ago, self-managed super funds made up 15% of the total value of WAM Capital, now they are little over 60 per cent. So, I mean that is significant growth, that’s $3 million 19 years ago, $720 million now. And as a sector, self-managed super fund sector I think has embraced LICs and ETFs. So, where they can get direct access to active managers through the LIC structure and passive managers through ETFs.

Freeman: Now Geoff you are talking about traditional LICs. What are some of the key characteristics of traditional, and so how do they differ to the less orthodox?

Wilson: They tend to be internally managed and they tend to take a very long-term view and be not as active as the other group of LICs. And the other group of LICs which you'd probably classify as actively managed LICs, they are more recent probably over the last 20 or 30 years of LICs that have listed are in that structure and they are externally managed and they are a lot more active in terms of how they manage their money.

Freeman: Sure. And just lastly you mentioned sort of four key characteristics that investors should look for in, firstly, determining whether LICs are right for them, and in selecting what type of LIC.

Wilson: I mean the first thing is performance. Number one, the listed investment company or the manager has to perform and so you look at that over one year, two years, three years and you try to guess or assume what they'll do going forward.

Secondly is yield, it is very important that you get a good yield and a sustainable yield. And the great thing about listed investment company structure is you can, you have the ability to pay a growing stream of fully franked dividends over time and the boards have the ability to effective smooth dividends to give them to shareholders.

Thirdly you really, the board and the manager has to treat shareholders with respect. So, it's not raising capital of discount to assets and various things like that.

And the fourth thing is to engage with your shareholders. Because your shareholders own the company. And really it's to also have a communication strategy that can find more shareholders. So hopefully it can drive the share price to possibly NTI or even a premium.

Freeman: Thank you very much for your time.

Wilson: Thanks.