I see the NCC price has rallied from about 89 to 1.03 since June 30. Looks like July should be an ok month for them as I think small caps in general have bounced as they often do after June tax loss selling can hit certain companies.

I doubt however the NCC NTA will show the same magnitude of gains. I imagine the discount has narrowed sharply and I don’t think there is good reason for such a narrowing. It doesn’t seem rational to me that the market places them on such a tight discount compared with NSC. The same people involved and quite a similar mandate, with performance in recent years very disappointing.

One rational response might be to expect the NCC price to be under pressure in the shorter term. Am not convinced the historic NCC yield is sustainable over the long term.