Yep, I've got more...

Yep, I've got more info

http://www.contango.com.au/contango_midcap_promotional_material.php

It will hold 35 Industrial stocks between 30 and 300 on the ASX
All good yielding stocks
Out of those dividends and capital growth it will pay 4 payments each year of 1.8% every quarter.

The discount I dont mind- get in at a discount, worked for CTN doing so well the last 3 years in its share price

Its not 1% though- NO fee for years 1 & 2, then 1.66% in years 3, 4 & 5 (but that's an average of 1%)

At the end of year 5 shareholders vote to wind it up and get full NTA back if it is at a discount- the idea is it is self fulfilling and the discount would narrow by itself

The performance fee is only in years 1 & 2 when there is no managers fee, and it is capped at 1% the most they can earn

It has a 5 year management agreement, not 15 or 25 like most LICs.

And it has the rule that if the discount gets to 10% over 3 fortnightly NTAs they'll buy on the market the next month. It kid of sets a floor

I can see that working. I wonder if they'll have to bring some of those rules into CTN?

Oh, and people in the IPO get free 1 for 1 options which are to be listed on the ASX

You can get all that from here

http://www.contango.com.au/data/docs/publications/midcap/Contango%20MidCap%20flyer%20-%20Reliable%20income%20streams.pdf

I wonder if people will line up, get the shares, flip them if they are at a cent or 2 above listing price, and hold the oppies?

I doubt it, guess people will be in this for the dividend streams.

Much better than seeing my cash TD go nowhere

Buyer Beware of course, I read it on the web, so it must be true