Glennon Small Companies Limited Announces NTA of $0.6951 Per Share as of 23 July 2026

Overview of Glennon Small Companies Limited’s Fund Structure and Investment Strategy

Glennon Small Companies Limited is an ASX-listed closed-end investment fund headquartered in Sydney at Level 26, 44 Market Street. The fund specializes in small-cap equities within the Australian market, maintaining a stable capital base that supports long-term investment strategies without the fluctuations typical of open-ended funds. This structure enables Glennon to invest consistently across a portfolio of small-cap ASX-listed companies, aiming to capitalize on growth opportunities often overlooked by larger institutional investors.

The fund’s mandate focuses on acquiring stakes in small-cap Australian companies, leveraging its dedicated market segment expertise to identify undervalued or high-potential investments. Regular NTA disclosures align with ASX-listed fund standards, ensuring transparency regarding the underlying value of shareholder investments.

Analysis of Pre-Tax NTA and Deferred Tax Asset Components

The unaudited pre-tax NTA of $0.6951 per share represents the theoretical asset value before deducting estimated taxes on unrealised gains and income. A key element is the deferred tax asset of $0.0764 per share, derived from prior and current year tax losses. These deferred tax assets reflect accumulated losses that can offset future taxable income, thereby reducing future tax liabilities and constituting a significant portion of the pre-tax NTA.

Additionally, accrued interest on convertible loans valued at $0.026 per share is included at book value rather than fair value, consistent with ASX listing rule requirements for NTA reporting. This accounting treatment ensures comparability and reflects the loans’ cost basis instead of market fluctuations or conversion options.

After-Tax NTA: Accounting for Tax Rates and Selling Expenses

The after-tax NTA of $0.6895 per share accounts for tax liabilities and estimated selling costs, applying a 25% corporate tax rate applicable to base rate entities under Australian tax legislation. This reduced tax rate indicates Glennon’s qualification for concessional tax treatment, resulting in a conservative net asset value estimate that factors in realistic tax and transaction costs associated with portfolio liquidation.

Incorporating estimated selling costs acknowledges expenses such as brokerage fees and market impact costs incurred when liquidating holdings. This approach delivers a more accurate reflection of net proceeds available to shareholders should the fund be wound up, aligning with best practices for ASX-listed investment funds.

Impact of ASX Listing Rules on NTA Disclosure and Calculation Methodology

Glennon’s NTA calculation methodology complies with ASX listing rules, which mandate inclusion of deferred tax assets in pre-tax NTA figures to represent the fund’s full economic asset position. The company’s disclosure as of 23 July 2026 provides investors with a timely snapshot of the fund’s value, with figures unaudited due to their interim nature. Audited NTA values are typically published alongside annual financial statements, balancing transparency with rigorous reporting standards.

Insights into Glennon’s Asset Portfolio from NTA Components

Although detailed portfolio holdings are not disclosed, the significant deferred tax asset ($0.0764 per share) within the $0.6951 pre-tax NTA suggests prior periods of losses or accumulated tax losses, possibly reflecting challenging market conditions or earlier fund performance. The presence of convertible loans, with accrued interest of $0.026 per share, indicates financing strategies that provide capital structure flexibility, though these loans represent a smaller portion of the fund’s capital base.

Recognition of convertible loans at book value rather than fair value may understate or overstate their current economic worth depending on market conditions since issuance. Investors should consider this when evaluating the fund’s asset quality and composition alongside supplementary disclosures such as fund factsheets or annual reports.

Deferred Tax Assets and Tax Efficiency Strategies in Glennon’s Valuation

The deferred tax asset comprising approximately 11% of the pre-tax NTA highlights Glennon’s tax planning and efficiency strategies. These assets arise from accumulated tax losses that can offset future taxable income, enhancing after-tax returns for shareholders. Such tax loss carry-forwards may result from market downturns or deliberate portfolio rebalancing to realise losses.

While these tax assets improve potential returns, their realisation depends on future taxable income generation and continued eligibility for concessional tax treatment. Changes in portfolio composition, capital gains realisation, or tax law could affect the deferred tax asset’s value, providing important context for the difference between pre- and post-tax NTA figures.

Investment Considerations for Small-Cap Focused ASX-Listed Funds Like Glennon

Operating in the Australian small-cap equity space, Glennon offers investors diversified exposure to companies typically below larger-cap thresholds. Small-cap investing often delivers higher growth potential but comes with increased volatility and liquidity risks. Glennon’s closed-end structure enables long-term investment without redemption pressures, allowing the fund manager to focus on identifying undervalued small-cap opportunities.

Investors should be mindful of risks inherent in small-cap investing, including limited analyst coverage and higher transaction costs. The NTA valuation provides a benchmark for assessing whether the fund’s market price trades at a discount or premium to its underlying asset value, a key metric in evaluating closed-end fund attractiveness.

Market Environment Reflected in the 23 July 2026 NTA Disclosure

The NTA snapshot as of 23 July 2026 captures the fund’s valuation during prevailing market conditions. While no explicit commentary on market trends is provided, the material deferred tax asset may indicate recent valuation challenges within the small-cap segment. Australian small-cap equities are sensitive to economic growth, interest rates, and sector-specific factors, which can influence portfolio valuations.

Monitoring NTA changes over time against small-cap indices can help investors evaluate the fund manager’s stock selection effectiveness and the fund’s value relative to market benchmarks. The discount or premium to NTA remains an important indicator for assessing investment opportunities.

Investor Guidance Following Glennon’s Latest NTA Release

Investors should track subsequent NTA disclosures to monitor changes in Glennon’s underlying asset value and performance relative to small-cap benchmarks. Key factors to observe include portfolio turnover, management expenses, and any strategic shifts. Additionally, attention should be paid to factors influencing deferred tax asset realisation, such as tax law changes or fund status.

For further information, investors can contact Joint Company Secretary Vivien Gacho via email at [email protected] or by phone at (02) 8027 1000. The fund’s website, www.glennon.com.au, also offers additional resources including fact sheets, annual reports, and performance data to support investor understanding of the NTA valuation and overall investment strategy.