MICROCAPS FUND

• FY21 record net profit after tax of $40.2m, a material turnaround from the net loss in FY20.

• Company NTA performance of +55.5%

• New target dividend yield of 4%  of NTA p.a. (5.4% including franking vs current 4.8%), paid quarterly, for FY22, beginning in the September 2021 quarter.

• On-market share buy-back of $9.9m to date ($3.1m during FY21), adding 2.8 cents of NTA per share

Liking the setting of a target dividend yield of 5.4% to be paid quarterly.  Healthy profit reserve to allow for this.

LIC trading microcaps.  Whilst they have a number of managed funds for more serious investors ($25k upwards) which have delivered successful returns, this is their first Listed fund.

P/E 3.8

Current post tax NTA is $2.576 (as at 27Aug).

Yet the price is $2.49 (a few cents discount).  Thinking this might be a good place to jump in.  Although I am wary I've just missed the uptick.

Going ex div 7/9/21; $0.05 declared.