Ann: Investment Report & NTA Update - September 2018, page-8

OK - back again for 2 reasons ...

Firstly, I checked the NTA for September ... and after all these months, I finally got it right 2 weeks after I sold the stock (91c prediction on the Aug NTA string)! However, given the number of unsuccessful attempts I had in prior months, maybe this was just dumb arsed luck or law of averages!

Secondly, I just had a very cathartic experience. After selling out completely, NAOS sent me a survey asking me a bunch of questions about why I sold ... and I gave them a full blast and a bunch of suggestions. If you agree with them, maybe press them as questions during the AGM?

Suggestions I made for improvement ...

1/ NAOS should offer an immediate off market, equal access buyback of say 10-20% of shares at full NTA, eg. similar to WAM/WAX off market buybacks following the GFC.
2/ NAOS should commence an on market buyback and aggressively buyback shares whenever the SP was 10% or more below NTA.
3/ NAOS should consider employing a new portfolio manager to improve performance
4/ NAOS should voluntarily give up the unreasonable break fees payable to NAOS following the 5 year anniversary of the management agreement (so they can be voted out by shareholders without a >5% hit to NTA)

I suggested that these changes would make them far more likely to keep their management agreement at the 10 year anniversary (when they can be kicked out without the fee) and would show that they were aligned with shareholder interests.

I think the survey is probably the best thing they've done - at least gave me the opportunity to vent.

Good luck to all who remain ... and give'm hell with your questions and voting at the AGM!!