Contango’s special dividend for MicroCap

Boutique fund manager Contango is paying a special dividend for its ASX-listed MicroCap fund.

The special dividend will be 4 cents a share in addition to the 3.5 cents final dividend for the 2006 financial year.

Contango MicroCap chairman David Stevens said the special dividend was also available to investors who have taken up the one for three shares rights issue, which have been priced at $1.20.

The fund has achieved a gross return of 52 per cent for the year, which outperformed the All Ordinaries index by 27.9 per cent.

Stevens said the fund’s performance was very satisfactory for the year.

“Companies in the microcap sector continue to perform very well and the outlook for the sector remains very positive,” he said.

“During the year, the fund took up a range of excellent new share issues, both IPO’s [initial public offering’s] and rights issues, to support expansion of the microcap sector.”

Stevens said the fund increased its profit after tax by 122 per cent to $17.38 million and this confirmed the quality of the companies in the portfolio.

“We expect further attractive investment opportunities to arise in 2007 and the discounted rights issue will enable our shareholders to benefit further from these new business opportunities,” he said.

The fund has started the 2007 financial year on a positive note, Stevens added.

“During July and August, the value of the portfolio in the fund increased by a further 8.1 per cent.”