Siloxane-containing liquid crystalline compounds were found effective to induce distinct phase separation, when combined with multi-functional acrylates, over a wide concentration range from 6 wt % to 20 wt % in the formation of holographic gratings. Use of ring-opening polymerizable bi-functional epoxides as one of the reactive cross-linking matrix component together with penta- or tetra acrylate initiated by 3,3′-carbonylbis(7-diethylaminocoumarin)-diphenyliodonium hexafluorophosphate greatly improved the diffraction efficiency and angular selectivity of the formed grating. Fine gratings with 70% and 78% diffraction efficiency and angular selectivity of about 5° were formed with 10 wt % 4-cyano-4′-{(5-heptamethyltrisiloxan-1-yl)pentyloxy} biphenyl and 4-cyanophenyl 4-{(5-heptamethyltrisiloxan-1-yl)pentyloxy}benzoate using pentaerythrytol pentaacrylate-neopentylglycol diglycidyl ether-tripropylene glycol diacrylate (4:5:1) as the polymer matrix component.