Contango launches new LIC
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.
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