West Perth-based managed investment scheme LinQ Resources Fund has announced an estimated distribution of 7 cents per unit for the 12 month period to 30 June 2006, an increase of 3 ½ times the distribution for the 12 month period to 30 June 2005.
West Perth-based managed investment scheme LinQ Resources Fund has announced an estimated distribution of 7 cents per unit for the 12 month period to 30 June 2006, an increase of 3 ½ times the distribution for the 12 month period to 30 June 2005.
The company said the distribution followed the strong performance of the fund over the last 11 months with a 32 per cent rise in net tangible assets and a reduction of the fund's cash drag with cash representing 27 per cent of the NTA as at 31st May compared to 69 per cent at the start of the financial year.
As at 830 WST, shares in LinQ Resources Fund were up 5 cents to 90 cents.
Below is the announcement:
LinQ Resources Fund, the actively managed resources fund which specialises in investments in small to medium resources companies, today announced the following estimated distribution for the 12 month period to 30 June 2006. The estimated distribution is 7 cents per unit, an increase of 3 = times the distribution for the 12 month period to 30 June 2005 of 2 cents per unit.
This estimate is based on unaudited accounts to 31 May 2006 adjusted for forecast movements in realised profits and losses during June 2006. The final results are subject to audit in July 2006.
This distribution follows strong performance of the fund over the last 11 months:
A 32% rise in NTA
Significant reduction of the Fund's cash drag with cash representing 69% of the NTA at the start of the financial year and only 27% by 31 May 2006
In the next 12 months a number of investee companies are expected to make the transition from explorer to producer reflecting positive advancement of many of our investee companies.
Welcoming the proposed distribution, which comes only 17 months after listing on the ASX in late January 2005, Clive Donner, Managing Director of the LinQ Resources Fund, said: "We are pleased to be able to provide our investors with this proposed increase in distribution. This is the best kind of vindication of our Fund's performance, strategy and investment selection process. We are also pleased at the rate that we have been able to reduce the cash drag over the last year and expect that as the fund approaches full investment, its valuation will better reflect the performance of its investments. We continue to see real opportunities for value in our sector and believe that the current sector fundamentals predominantly remain positive and unchanged."
The actual distribution amount will be finalised at a meeting of the LinQ Capital Limited Board scheduled for the end of July 2006, after finalisation of the audited accounts. Payment of the distribution entitlement is expected to be made around the middle of August 2006.
The advice to be sent to unit holders with payment in August 2006 will include details of the tax advantaged components of the distribution.
Under the Fund's constitution, the record date for determining the Unit holders' entitlement to a distribution is close of business on 30 June each year or more frequently as the RE may determine. For the 2006 distribution the record date is 30 June 2006 and the units will trade ex div on 26 June 2006.
In addition, the Directors advise the Distribution Reinvestment Plan (`DRP') remains active. All units allotted under the Plan are allotted at an issue price which is determined in accordance with the requirements of the Scheme Constitution, which will include a discount determined by the Responsible Entity to be 5%.
