January 2020

Arowana CVF December Net Tangible Asset Release

CVF News NTA Reports

Arowana CVF December Net Tangible Asset Release

Arowana CVF Team

As At 31 December 2019

The Fund outperformed by 3.0% during the month ended 31 December 2019, recording a net performance gain of 0.8% whilst the index lost (2.2)%.

Pre-tax NTA per share was $1.20* as at 31 December 2019.

Post-tax NTA per share was $1.18* as at 31 December 2019.

CVF will trade ex-dividend on Monday 20th January paying a dividend of $0.00458 for the month.

5 year anniversary as an LIC

The year ended 31 December 2019 marks the 5 year anniversary of the Company being listed on the ASX, however, the Arowana Contrarian Value Fund (formerly the Arowana Australasian Value Opportunities Fund) was actually founded 10 years ago.

In the 5 years prior to its IPO, an audited ungeared return of 142.6% was achieved, representing an outperformance of 73.6% over the ASX/S&P 200 Accumulation Index which delivered a 69.0% return over the same period.

Since its IPO, CVF has returned 82.4% (12.8% annualised), outperforming the ASX S&P 200 Accumulation Index, by 28.7%, we are pleased that the Fund has delivered outperformance during this time and over the last 3 years is in the top quartile of equity LICs on the ASX[1], despite having no gearing and maintaining an average cash balance of 57.0%.

 

*The Company is required to estimate the tax that may arise should the entire portfolio be disposed of on the above date and show the result per share after deducting this theoretical provision. Any such tax would generate franking credits, whose value would not be lost but rather transferred to shareholders on payment of franked dividends.

[1] Source: ASX Investment Products. Included are only LICs that report 3 year performance and have a market cap of >$30m. Performance data is 3 years to November 2019.

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