I believe that in the long run, virtually nothing can...

I believe that in the long run, virtually nothing can consistently beat the index. That's why my biggest holdings are in low-cost index funds (STW and Vanguard's S&P/ASX300 fund). However, top-class, low-cost LICs (e.g. ARG, AUI, CHO, DUI, MLT) tend to perform similarly to the index. The reason I own ARG/CHO/MLT is to participate in the occasional share purchase plan, rights issue etc. which can provide good cost savings. Some years the LICs will beat the index; other years they will underperform: overall, I realistically aim to achieve a result approximating the index (or perhaps slightly better after tax).