Solaris Australian Equity Income Plus Limited Announces Estimated Pre-Tax NTA of $1.990 Per Share as of 20 July 2026

Overview of Solaris Australian Equity Income Plus Limited’s Investment Approach

Solaris Australian Equity Income Plus Limited, trading under ASX ticker SET, is an Australian equity income-focused investment company headquartered at Level 20, 66 Eagle Street, Brisbane, Queensland. Its primary objective is to provide investors with exposure to Australian equities emphasizing income generation. The company builds a diversified portfolio of Australian shares selected for their income potential, positioning SET as a key income-focused investment vehicle within the Australian managed funds sector.

Operating as an ASX-listed investment company, SET offers professional portfolio management and structured equity market exposure. Registered under ABN 21 695 278 810, the company’s Brisbane base and affiliation with Pinnacle Investment Management ensure robust operational support and investor communications.

Methodology Behind the Pre-Tax NTA Per Share Calculation and Adjustments

The estimated pre-tax NTA per share of $1.990 as at 20 July 2026 is derived by adjusting the daily valuation of the company’s investment portfolio and cash balances for management fees and estimated operating costs. This approach accounts for the actual expenses incurred in managing the portfolio, alongside adjustments for income tax balances that impact the net asset value available to shareholders.

Investors should note that the pre-tax NTA excludes the company’s franking account balance, which is significant for Australian investors benefiting from franking credits. Additionally, deferred tax assets related to income tax losses are excluded. The pre-tax NTA includes tax on realised gains and losses but deliberately omits provisions for tax on unrealised gains and losses, distinguishing it from post-tax NTA calculations.

Unaudited and Approximate Nature of the NTA Figure

The company clearly states that the $1.990 per share NTA figure is unaudited and approximate. This reflects an estimate based on operational valuations rather than a formally audited accounting position. The approximate nature acknowledges valuation uncertainties inherent in daily portfolio assessments, especially where some holdings lack active trading or rely on model-based valuations.

This daily NTA update serves as an operational indicator rather than a substitute for audited financial statements or periodic reports. Investors should use these figures for trend analysis and portfolio valuation context while relying on audited reports for material investment decisions.

Exclusion of Franking Account Balance and Its Impact on Shareholders

The reported NTA does not incorporate the company’s franking account balance, which represents tax credits distributable to shareholders alongside dividends, enhancing after-tax returns. This exclusion means the $1.990 per share figure does not capture the full economic value attributable to shareholders from franking credits.

Income-focused investors should consider franking account disclosures in the company’s financial reports to gain a comprehensive understanding of shareholder value. Given SET’s income-oriented strategy, it likely maintains a meaningful franking account balance that adds value beyond the pre-tax NTA.

Deferred Tax Assets and Their Exclusion from NTA Calculations

Deferred tax assets arising from income tax losses are excluded from the NTA calculation, reflecting a conservative valuation approach. These assets represent potential future tax benefits if the company generates sufficient taxable income to utilize accumulated losses. By excluding these, the NTA figure does not account for possible future tax savings.

Investors should review detailed financial disclosures regarding the company’s tax loss position and any constraints on loss utilisation to fully assess the impact on shareholder value.

Daily Valuation and Portfolio Assessment Practices

The NTA per share is based on daily valuations of the company’s equity portfolio and cash holdings, ensuring regular updates on asset backing. Market prices, primarily sourced from ASX trading data, underpin these valuations. Adjustments for management fees and operating costs ensure the NTA reflects current economic realities rather than raw portfolio values.

This daily valuation practice aligns with industry standards for ASX-listed investment companies, facilitating investor awareness of potential discounts or premiums relative to market share prices and supporting transparent price discovery.

Incorporation of Management Fees and Operating Costs in NTA

Management fees, calculated as a percentage of assets under management, and estimated operating costs such as administrative and compliance expenses, are deducted in the NTA calculation. These adjustments provide a more accurate reflection of the net value available to shareholders after accounting for ongoing expenses.

Investors should recognize that these costs influence the difference between gross portfolio value and net asset value, impacting long-term performance and comparative valuation against other investment options.

Tax Treatment of Realised Versus Unrealised Gains in NTA

The pre-tax NTA includes tax on realised gains and losses but excludes provisions for tax on unrealised gains and losses. Realised gains and losses arise from completed transactions and have definitive tax consequences, whereas unrealised positions remain subject to market fluctuations and uncertain tax outcomes. This approach results in a pre-tax NTA that reflects asset backing before potential tax on unrealised gains.

Investors comparing SET’s NTA with other funds should consider differences in tax treatment methodologies, as some may use post-tax NTA calculations affecting valuation comparisons.

Utilizing Daily NTA Updates for Market Monitoring and Share Price Analysis

Daily NTA updates are essential for investors tracking whether SET shares trade at premiums or discounts to net asset backing. A market price above the $1.990 NTA suggests a premium, indicating confidence in management or growth prospects, while a price below signals a discount, possibly reflecting undervaluation or market concerns.

These frequent updates enhance investor decision-making beyond periodic financial reports and support price discovery by market participants evaluating NTA-to-price relationships.

Compliance and Transparency in SET’s NTA Reporting

Solaris Australian Equity Income Plus Limited’s daily NTA disclosures comply with ASX requirements and best practices for listed investment companies. The update, authorized by Company Secretary Terence Kwong, demonstrates the company’s commitment to transparent and responsible communication of material financial information.

The detailed disclosure of NTA calculation methodology, including treatment of franking accounts, deferred tax assets, tax positions, and operating cost adjustments, fosters investor confidence and supports SET’s reputation within the competitive Australian equity income investment sector.