Contango MicroCap Ltd - Fund Ratings Suspended - Under Review
Independent Investment Research
Independent Investment Research
We have suspended our investment rating for CTN and placed the LIC under review following an announcement by the company about changes to its investment management arrangements. On 8 December CTN announced the appointment of a second manager to manage the $27m sale proceeds from the shares disposed of in Contango Income Generator (CIE). We hold some significant concerns in relation to the addition of a new manager given the potential for differences in style and process to the existing manager. Details of the new manager have not been released so at this stage we cannot assess whether the investment style and process are consistent with CTN’s objectives. Nor can we assess the quality, or performance track record of the new manager. We are also concerned that having the management of the portfolio split between two managers could lead to conflicting outcomes and have an adverse impact on overall portfolio performance. We have commenced a full review of CTN and expect to determine our view early next year.
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Independent Investment Research, “IIR”, is an independent investment research house based in Australia and the United States. IIR specialises in independent research in small/ micro cap equities across sectors and managed investment ratings both listed and unlisted. The research is for Financial Planners, Brokers, Family Offices and Fund Managers. IIR distributes its research in Asia, United States and Europe. Importantly, IIR does not participate in any corporate or capital raising activity or advice and therefore it does not have any inherent bias that may result from research that is linked to any corporate/ capital raising activity. Analyst remuneration is not linked to stock/ fund performance, in fact the remuneration does not have any nexus to company/ fund pricing, performance or like. Analyst are prohibited to participate in any promotional activity that may compromise the independent of its research.
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Independent Investment Research
Independent Investment Research
Independent Investment Research, “IIR”, is an independent investment research house based in Australia and the United States. IIR specialises in independent research in small/ micro cap equities across sectors and managed investment ratings both...
Expertise
Independent Investment Research
Independent Investment Research
Independent Investment Research, “IIR”, is an independent investment research house based in Australia and the United States. IIR specialises in independent research in small/ micro cap equities across sectors and managed investment ratings both...
Expertise
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