NAOS Asset Management is a specialist fund manager providing investors with exposure to high quality, undervalued, listed Australian micro, small and mid capitalisation companies, with an industrial bias in a concentrated structure.
On a pre-tax NTA basis,Naos Ex-50 Opportunities (NAC)was the second most successful medium/small cap mandate under Bell Potter coverage for the quarter ending 31 March 2021. NAC produced a return (including net dividends) of 10.7%, outperforming the benchmark S&P/ASX 300 Industrials Accumulation Index by 6.0%. Meanwhile,Naos Small Cap Opportunities (NSC)emerged as the most successful small/micro cap mandate during this same time. NSC produced a return (incl. net dividends) of 18.0%, outperforming the benchmark S&P/ASX Small Ordinaries Accumulation Index by 15.9%. Despite significant excess returns, the share price to pre-tax NTA discount widened from 14.0% to 23.7% over the March quarter (continued in report).
Bell Potter’s Indicative NTA tracks the ‘indicative’ movement of a LIC’s underlying NTA each month by monitoring the percentage movements of the disclosed holdings and using an index to track the movement of the remaining positions. The Indicative NTA works best with LICs that have a high percentage of investments concentrated in its Top 20, regular disclosure of its Top 20, lower turnover of investments, regular disclosure of its cash position and the absence of a performance fee. We have also included an adjusted indicative NTA and adjusted discount that removes the LIC distribution from the ex-dividend date until the receipt of the new NTA post the payment date. This report is published each Monday prior to the market open and is available on a daily basis. Intraday indicative NTAs will be available on request through your adviser.
Hayden Nicholson is an ETF/LIC Specialist at Bell Potter Securities. Hayden provides comprehensive coverage of the ETF and LIC sectors, producing a range of highly regarded reports covering investment fundamentals, asset class structure and cost, and the role of managed investments in portfolios.