The fledgling listed investment company (LIC) announced a maiden operating profit after tax of $1,107,808 from four months of operations as a public entity, with a fully franked final dividend of 2.5 cents per share.
The firm said its dividend reinvestment plan is in operation and the recommended fully franked dividend of 2.5 cents per share qualifies. Net tangible assets for reporting purposes were $18.4 million.
NAOS Emerging Opportunities Company, which announced its initial public offering late last year, recorded a 20.96 per cent return since inception – well ahead of its benchmark, the S&P/ASX Small Ordinaries Accumulation Index, which returned -8.76 per cent over the same period, according to NAOS.
Referring to the 2.5 cents per share dividend, which was greater than the originally targeted 2.0 cents per share return, NAOS Asset Management managing director Sebastian Evans said it was done to signal the firm’s intentions to “provide sustainable yield and capital growth in the future”, given the current focus on yield from retail investors.
“Moving forward, the investment team is acutely aware of managing the company’s investments in a conservative manner to crystallise the performance to date, minimise capital risk, maintain an attractive dividend yield and re-deploy funds, as compelling investment opportunities present themselves to further maximise value for our shareholders,” he said in a statement to the Australian Securities Exchange.
In its results, the firm said the “highly concentrated” portfolio typically holds around 10 to 15 investments, while its website suggests a maximum of 30 stocks when fully invested, with the option to short stocks.
The firm continues to run two other, unlisted portfolios: the NAOS Long Short Equity Fund and the NAOS Emerging Companies Fund.
