Contango launches new LIC

1 July 2015
| By Mike |
image
image
expand image

Contango MicroCap Limited has launched a new listed investment company (LIC).

The company announced that it had taken a cornerstone position in the new LIC product — the Contango Income Generator Limited (ASX ticker "CIE").

It said the objective of CIE was to provide shareholders with a sustainable income stream of dividends coupled with some capital growth over time, while also offering diversification away from the top 30 securities of the S&P/ASX 300 Index.

Explaining its positioning, the launch material said the company would seek to invest in high quality ex-30 stocks that have relatively lower volatility, sound balance sheets, consistent and franked dividends, and sustainable earnings growth.

"CIE's dividend policy is to pay a minimum of 6.5 per cent per annum of the company's Net Tangible Asset (NTA) value per share," it said.

Contango Asset Management Limited chief investment officer, George Boubouras, who is also on the board of CIE, said the listing of the new LIC was an important step in Contango's growth strategy and he was happy to be helping investors access a sustainable income stream in this low interest rate environment.

"The launch of CIE represents a key milestone for the Contango Group and it is evidence that our growth strategy is progressing well", he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 2 weeks ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 6 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

1 day 3 hours ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 4 days ago