I have a spreadsheet tracking the performance of NTA (pre and post tax) and share price. What has happened is TEK opened at around a 9.5% premium and as of 31/5/20 was at a 15% discount. This has resulted in the under performance you discuss. However, performance based on NTA is very different. Numbers below:
| Date | Share price | Pre-tax NTA | Post-tax NTA |
|---|
| 1 | 31/1/17 | 23c | 20.8c | 20.8c |
|---|
| 2 | 31/5/20 | 25c | 28.9c | 31.9c |
|---|
NTA has provided a 10.37% pa return pre tax and 13.69% pa return post tax (based on 31/5/20). Share price for this date has only provided 2.53% pa return.
This shows the effect share price premiums and discounts can have on performance of an LIC. However, I purchased TEK based on a long term hold. Therefore, I am more interested in the NTA performance as this is the underlying performance of TEK. The underlying performance looks good (ASX200 TR was 4.77% pa over the same time). Hopefully, with time the market will realise this and close the discount.
