“There is a significant trend in SMSFs investing in LICs,” Mr Wilson said.

“About 10 years ago SMSF as our shareholders made up about a little over 15 per cent of our shareholder base.

“Now they make up about – we estimate– about 50 per cent of our shareholders.”

Mr Wilson said SMSF trustees are attracted to LICs primarily because they are “superior investment vehicles” to managed funds.

He also added that the banning of trailing commissions has finally put LICs on an equal playing field to the managed fund market.

“They’re a superior investment vehicle for a diversified portfolio than managed funds are,” Mr Wilson said.

“The reason why they’ve never grown at the rate of managed funds is because up until recently advisers effectively got a fee for putting people into managed funds.

“My view is that LIC are at the start of a golden decade.”