AllFueledUp wrote:"I am looking at page Page 9, Table 8, and it...

AllFueledUp wrote:

"I am looking at page Page 9, Table 8, and it shows they have done a PER ANNUM share price return (which adds dividends) of 19.2% for the last 3 years, which you note you have been a holder
...

My tongue in cheek questions Barney are

1. What are ya smokin buddy!
2. Do you really understand LICs?
3. Do you really understand microcaps? (hasn't most every other micro been smashed the last 3 years for you too? Struth- if only some of my other micros did 19%pa over those 3 years
4. How can you be cranky, when they've treaded water in the worst period for smalls, and small resources since Adam, and given you 19%pa over that time?"

It's somewhat spin-like, and certainly not useful to focus on that figure, which makes your questions ironic - if not tongue in cheek.

1) The share price is driven primarily by results, with sentiment on top. The only reason the share return is great at 19.1% is because share prices were significantly discounted early in that period. That discount has now reduced significantly.

2) This is not something you can rely on to continue further, and it won't. It's only a rare LIC that is priced at a premium, in good times.

Now you might be overly optimistic and believe this is possible for CTN. However, this will only improve due to the figure you disregard, which is _management performance._

Management performance is most apparent by achieving an increase in NTA. While you disregard this, this is actually their business. The results that you ignore in the Performance column show what their achievements were. Over 3 years, that a -0.1 p.a. loss. Now you might say that's a bad market, but that's what the second grouping is for: Value-Add.

That actually shows management selection lost a further -8.1% p.a. over 3 years. That's terrible!

That means they've lost money compared to if you'd invested in an index fund, or their benchmark.

With that trend, the discount will only _increase_ again if anything. Compounded with a negative return against the benchmark, you are more likely to lose money than gain in future, unless they lift their game.

You can have blind faith and optimism as you do, but the results to date from that table show they are a poor investment.