they gave the return from inception to 30-Jun-15 at 15.5% p.a. - which is elite. They give the out-performance v.s. the small ordinaries accumulation index as 11.3% - again elite.
It seems to me that CTN quotes all it's performance figures gross of fees, charges & taxes. For comparison with other LICs I'd like to know the net change in NTA.
Net of fees & charges I calculate the change in book value as between 9.35% p.a. and 10.8% p.a., depending on taxation treatment. This is the change in book value from $.975 on 30-Mar-04, through to 30-Jun-15, assuming full participation in DRP, and participation in rights/option issues where exercise was at a discount to the price on expiry.
I can't find the exact numbers for the all ordinaries accumulation index, but it looks like it returned 8.6% p.a. over the same period. I understand the all ordinaries excludes franking credits too, so using 9.35% p.a. , I get CTN outperforming by about 0.8% p.a.
So if I think net of fees is the fairest comparison and that the all ordinaries is the better benchmark I get 0.8% out-performance v.s. the stated 11.3%.
I was wondering if anyone has done the work / has seen the answer elsewhere?
Thanks.
CTN Price at posting:
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