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NAOS operates a consistent investment strategy across all three LICs. The key difference between each LIC is the size of the companies held within each portfolio, providing our investors the option to access a variety of quality emerging companies that fall within our circle of competence. NAOS maintain a focus on long term capital protection and delivering a sustainable stream of dividends, franked to the maximum extent possible.
The NAOS LICs are traded on the Australian Stock Exchange (ASX codes: NCC, NSC or NAC) and can be bought and sold either via your broker (can be an online broker) or your financial adviser. Your online broker, stockbroker or your financial adviser will assist you with what you need. The ASX has a list of recommended stockbrokers which are available on its website:
Shares in the Company may also be bought and sold via Macquarie Wrap (investments only), Netwealth, HUB-24 and MLC Navigator & Wrap (investments only).
Once invested shareholders can elect to participate in the Company’s Dividend Reinvestment Plan (DRP). The plan allows shareholders to elect to receive their dividends in shares rather than cash. DRP shares will be acquired ‘on market’ when the post-tax net tangible assets (NTA) is greater than the share price as at record date, thereby avoiding any potential dilution to the Company’s NTA. New shares will be issued when the share price is greater than the post-tax NTA as at record date.
Note: NAOS does not charge entry or exit fees when shareholders acquire or dispose of their holdings, although transaction costs will be borne when buying or selling through a stockbroker.
LICs are a viable and well established alternative to managed funds and direct equity holdings as they provide investors with a great way to achieve diversification, whilst providing the transparency and ease of administration of a listed security.
The key characteristics of LICs that we believe make them an attractive investment alternative include:
LICs offer investors ease of administration. There is little to no paperwork involved with investing in a LIC if individuals already have share trading accounts established (for example, Commsec, ETRADE etc.)
LICs offer investors a high degree of transparency, as they are governed by the ASX’s corporate governance and reporting requirements.
LICs are structured to maximize effectiveness when it comes to the consistency and regularity of dividend payments.
LICs are ‘closed end’ in nature, meaning they are not ‘forced sellers’ to meet the withdrawal demands of investors. Investors simply buy and sell shares in LICs from each other through the stock exchange.
There is no requirement for LICs to be fully invested at all times, unlike many unlisted funds, providing LIC managers with the flexibility of holding high levels of cash to hedge their portfolios at appropriate times.
Important Information: This material is provided for general information purposes only and must not be construed as investment advice or a recommendation. It does not take into account the investment objectives, financial situation or needs of any particular investor. Before making an investment decision, investors should consider obtaining professional investment advice that is tailored to their specific circumstances. Past performance is not necessarily indicative of future results and there is no guarantee that future performance, the amount or timing of any returns or that the investment objectives will be achieved.
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