Ann: Trading Halt, page-6

I suppose the owners of Contango Asset / Switzer Asset have evolved over the years. Yet I remember a Contango LIC with the code CTN (eventually became NSC) was around it was regularly issuing shares that diluted the NTA, and was constantly trying to think of new LIC products to launch.

I am on the distribution list for Switzer and the focus seems to me about getting new AUMs, and less about ensuring the best outcome for existing shareholders. They are not shy in promoting products, somewhat of a marketing machine. If you look at the 5 year chart of the asset manager CGA, it is understandable how they may want to lock in AUMs for the long term at any possible opportunity, and not care as much as shareholders may with any dilution to the NTA.

With these things it is so easy for management to point to increased size, liquidity, relevance, reduced fixed costs yada yada. Is it worth diluting the NTA for all this though? If all existing shareholders were consulted with the question and told the differences in NTA that occur from all the extra issuance from underwriting I wonder what their answer to all this would be?