Share price to
Net Tangible Assets (NTA)

Performance

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It is important to take note of where the share price is trading relative to the net tangible assets.

Investors in Listed Investment Companies often talk about shares trading at a 'discount' or 'premium' to NTA, below is an explanation of what this means.

Share Price is the current price of an Mirrabooka share on the ASX. Net Tangible Assets per share (NTA) is the value of the total portfolio divided by the number of shares on issue.

Using a simple example, if the value of the total portfolio is $100 and the number of shares on issue is 10, then the NTA is $10 per share.

NTA per share	Share price	Trading
$10	$11	At a premium
$10	$9	At a discount

The chart below outlines where the Mirrabooka share price has been trading relative to the NTA at the end of each month.

There are a number of factors that influence whether shares trade at a discount or a premium.

Market perception of Mirrabooka's future earnings potential and dividends

Perception of management and likely future performance

Supply and demand for shares at any one time can fluctuate. In particular, LIC shares such as Mirrabooka, sometimes fall out of favour. When the general market is running strongly investors may elect to move out of "value" shares into "growth stocks". Conversely when market conditions are more subdued investors may value a steadier stream of dividends and a value-based approach to investing

The relative benefit of lower costs of managing the portfolio on behalf of shareholders compared with the higher costs associated with a large proportion of managed funds.

Share price to Net Tangible Assets (NTA)

It is important to take note of where the share price is trading relative to the net tangible assets.

There are a number of factors that influence whether shares trade at a discount or a premium.

Share price to
Net Tangible Assets (NTA)