Solaris Australian Equity Income Plus Announces Estimated Pre-Tax NTA of $1.991 Per Share as of 21 July 2026

Overview of Solaris Australian Equity Income Plus as a Closed-End Fund

Solaris Australian Equity Income Plus Limited operates as a closed-end investment company domiciled in Australia and is listed on the ASX under the ticker SET. Incorporated with ABN 21 695 278 810, its registered office is located at Level 20, 66 Eagle Street, Brisbane, Queensland 4000. Unlike open-ended managed funds, SET has a fixed number of shares outstanding, with investors buying and selling shares on the secondary market rather than redeeming directly with the fund manager.

The company’s investment approach targets the Australian equity market, aiming to deliver both income and capital growth. By maintaining a focused portfolio of Australian-listed equities, SET seeks to generate dividend income and capital appreciation. The closed-end structure enables Pinnacle Investment Management Limited, the fund manager, to implement a buy-and-hold strategy without pressure to sell holdings due to investor redemptions, supporting potential long-term value creation in Australian equities.

Importance of NTA Reporting for Closed-End Funds

Net Tangible Asset (NTA) reporting is a vital metric for investors in closed-end funds like SET. Unlike open-ended funds where redemptions occur at NTA, closed-end fund shares trade on the secondary market and may trade at a premium or discount to their underlying NTA. This premium or discount reflects market sentiment and supply-demand dynamics independent of the actual asset values.

Regular NTA disclosures enable investors to assess whether the share price fairly represents the underlying asset value, identifying potential buying opportunities when shares trade at a discount or signaling caution when trading at a premium. SET’s daily NTA updates provide shareholders and prospective investors with timely insights into the company’s asset backing between formal financial reports, promoting transparency and informed investment decisions.

Calculation Methodology and Components of NTA Per Share

The reported pre-tax NTA of $1.991 per share is derived from the daily valuation of SET’s investment portfolio combined with its cash holdings. The calculation includes adjustments for management fees payable to Pinnacle Investment Management and estimated operating costs and income tax balances, ensuring the figure realistically reflects net asset value per share after liabilities.

Notably, the pre-tax NTA figure accounts for tax on realised gains and losses but excludes provisions for tax on unrealised gains and losses—those on securities still held in the portfolio. This distinction is important as unrealised gains could result in significant tax liabilities if the portfolio were liquidated. Additionally, the NTA excludes the company’s franking account balance, which represents accumulated franking credits that may enhance shareholder value through future dividend distributions.

Exclusions and Limitations in the NTA Figure

The company’s reported pre-tax NTA of $1.991 per share excludes the franking account balance, which consists of tax credits available for distribution to shareholders, potentially understating the economic value available to investors, especially Australian taxpayers who can utilize these credits to reduce tax liabilities.

Furthermore, the NTA calculation omits any deferred tax assets related to income tax losses carried forward. Such tax losses could offset future taxable income, representing valuable assets that might increase future earnings and shareholder value. The NTA figure is unaudited and approximate, reflecting management’s best estimate rather than an independently verified valuation.

Impact of Management Fees and Operating Expenses on NTA

SET’s NTA calculation factors in management fees charged by Pinnacle Investment Management for portfolio management, research, trading, and administration. These fees are deducted to present a net asset value that accurately reflects shareholder wealth after costs.

Operating expenses, including administration, custodial, registry services, ASX listing fees, and general corporate costs, are also estimated and incorporated into the NTA. Adjusting for these costs ensures the NTA figure realistically accounts for the total expense burden borne by shareholders, facilitating meaningful comparisons with other investment vehicles.

Market Implications of the $1.991 Pre-Tax NTA as of 21 July 2026

The estimated pre-tax NTA of $1.991 per share represents the underlying asset value per SET share at 21 July 2026. Investors comparing this to the current market price can determine if SET shares are trading at a discount or premium to NTA. A market price below $1.991 indicates a discount, potentially signaling a buying opportunity, while a price above suggests a premium, reflecting market expectations of outperformance or structural advantages.

This NTA update, released on 22 July 2026, captures recent movements in Australian equities and cash holdings. Daily NTA updates allow investors to track trends in asset value, differentiating between genuine portfolio performance changes and short-term market volatility, thereby enhancing market efficiency through transparent information.

Income Generation Strategy Within the NTA Framework

Solaris Australian Equity Income Plus Limited’s dual focus on income and capital growth is reflected in its investment mandate. The fund prioritizes Australian equities with strong dividend histories, constructing a portfolio weighted toward high-yielding stocks to generate consistent dividend income. This income is either distributed to shareholders or reinvested to compound capital growth.

The NTA incorporates market values of dividend-paying securities and cash positions. Dividend income initially increases NTA until distributed or reinvested. The pre-tax NTA includes tax provisions on realised income and capital gains, acknowledging corporate-level tax liabilities that reduce net value available to shareholders.

Market Factors Influencing NTA and Share Price Dynamics

SET’s daily NTA reflects ongoing changes in portfolio valuations driven by Australian equity market conditions, economic data, interest rates, and company-specific developments. Positive market performance generally increases NTA, while downturns reduce it. This direct correlation aligns SET shareholders’ returns with broader equity market movements.

However, share price movements may diverge from NTA changes due to shifts in investor sentiment affecting the discount or premium at which shares trade. The daily NTA disclosures help investors separate asset performance from market sentiment, a valuable tool especially during periods of market stress or dislocation.

Regulatory Compliance and Disclosure Practices

SET’s daily NTA updates comply with Australian regulatory requirements and ASX listing rules governing closed-end funds. The timely release of the NTA figure within one business day of the valuation date demonstrates adherence to continuous disclosure and transparency obligations. The update’s authorization by Company Secretary Terence Kwong confirms proper governance and oversight.

The company’s clear communication regarding the unaudited and approximate nature of the NTA, along with detailed explanations of tax treatment and exclusions, ensures investors have sufficient information to accurately interpret the figure. This transparency fosters confidence in the integrity of SET’s NTA reporting and minimizes misunderstandings about the fund’s underlying value.