Thorney Opportunities June 2026 NTA Rises to 87.3 Cents Driven by Zip Co and Southern Cross Gains

After-Tax NTA Increases to 87.3 Cents as of 30 June 2026, Continuing Recovery

Thorney Opportunities Ltd reported an after-tax net tangible asset backing per share of 87.3 cents at 30 June 2026, up from 85.2 cents at 31 May 2026. The before-tax NTA also rose from 92.8 cents to 95.9 cents over the same period. These unaudited and approximate figures are typical disclosures for monthly NTA updates from listed investment companies.

The Chairman noted the portfolio ended June 2026 with a modest monthly gain, consolidating prior month recovery. The company’s monthly performance aligned broadly with Australian market trends. As of 30 June 2026, the share price stood at 55.0 cents with 167,764,620 shares outstanding, resulting in a market capitalization of $92.3 million. This indicates shares continued to trade at a discount to both before-tax and after-tax NTA.

TOP Portfolio Outperforms Small Ordinaries with 2.74% Return in June 2026

The TOP portfolio delivered a 2.74% return for June 2026, outperforming the S&P Small Ordinaries Accumulation Index, which fell 2.00%, by 4.74 percentage points. Performance is calculated on a pre-tax NTA plus dividends basis after accrued management fees, per the company update.

Over the 12 months to 30 June 2026, the portfolio returned -1.34%, underperforming the index’s 8.11% return by 9.45 percentage points. However, over three years, TOP returned 12.96% compared to the index’s 10.90%, outperforming by 2.06 percentage points. Since inception in January 2014, the portfolio has achieved an 11.86% return versus 10.46% for the index, marking cumulative outperformance of 1.40 percentage points. These results highlight the fund’s long-term investment focus despite short-term volatility.

Zip Co and Southern Cross Electrical Engineering Lead Positive Contributions in June

Zip Co Limited (ASX:ZIP) and Southern Cross Electrical Engineering Ltd (ASX:SXE) were key contributors to portfolio gains in June 2026. Southern Cross Electrical Engineering is the largest holding at 16.3% of the portfolio, while Zip Co is the second-largest at 11.3%. Combined, these two holdings represent over 27% of the portfolio.

These gains were partially offset by declines in COG Financial Services Limited (ASX:COG), Austin Engineering Limited (ASX:ANG), and AMA Group Limited (ASX:AMA), which represent 7.7%, 3.8%, and 6.1% of the portfolio respectively. The company did not provide specific attribution data for individual holdings.

Top Ten Holdings Show Sector Concentration in Financial Services, Engineering, and Consumer Sectors

As of 30 June 2026, the top ten holdings in the TOP portfolio demonstrate a focused approach on small and mid-cap Australian equities. Southern Cross Electrical Engineering leads at 16.3%, followed by Zip Co at 11.3%, and 20 Cashews at 10.5%. Other notable holdings include Solvar (8.2%), COG Financial Services (7.7%), AMA Group (6.1%), SPC Global Holdings (4.1%), Austin Engineering (3.8%), Acrow Limited (3.6%), and Aussie Broadband (2.3%).

Sector allocation shows financials as the largest sector at 30%, followed by infrastructure, energy, and resources at 28%. Cash comprises 9%, with commercial and professional services, media, and consumer discretionary sectors representing 9%, 12%, and 7% respectively. Other sectors make up the remaining 5%. The portfolio is primarily invested in ASX-listed securities (79.7%), with unlisted securities at 11.1% and cash at 9.2% as of the reporting date.

$14.9 Million Cash Held for New Investments Amid Macro Uncertainty

Thorney Opportunities maintained $14.9 million in cash available for investment as of 30 June 2026. Prime broker and margin lending facilities remained undrawn at month-end. The Chairman highlighted the company’s strong balance sheet and flexibility to pursue new investments while monitoring market conditions.

The Chairman emphasized that despite some market resilience amid geopolitical volatility, prevailing economic data in Australia and globally challenge central bank policies and growth prospects. This macroeconomic backdrop influences the company’s cautious capital deployment strategy, maintaining liquidity rather than committing funds amid uncertainty. No specific details were provided on target investments or timing.

600,000 Shares Repurchased in June; Buyback Program Extended to March 2027

In June 2026, Thorney Opportunities repurchased 600,000 shares through its on-market buyback program. The Board has extended the buyback facility through 10 March 2027. This program aims to return value to shareholders and potentially reduce the discount to NTA.

With shares trading at 55.0 cents versus an after-tax NTA of 87.3 cents as of 30 June 2026, the buyback continuation signals Board confidence in portfolio value. The company did not disclose total shares repurchased to date, total buyback expenditure, or the maximum authorized shares under the renewed program.

Thorney Investment Group Holds 35.9% Stake, Aligning Manager and Shareholder Interests

As of 30 June 2026, Thorney Investment Group and its associates hold a 35.9% stake in Thorney Opportunities Ltd. This significant insider ownership aligns the interests of the manager with external shareholders, reflecting substantial skin in the game.

Thorney Opportunities is managed by Thorney Management Services Pty Ltd under a long-term agreement. The fee structure includes a 0.75% half-yearly management fee and a 20% performance fee on net NTA increases above the high water mark. The company pays fully franked dividends semi-annually, with a history of progressive dividend growth since its January 2014 inception.

Investment Philosophy Focuses on Identifying Undervalued Companies and Active Board Engagement

Thorney Opportunities invests in listed and unlisted equities and financial assets across sectors such as media, automotive, energy, engineering, mining services, and financial services. Headquartered at Level 45, 55 Collins Street, Melbourne, it has been ASX-listed since January 2014. Its investment approach combines rigorous due diligence to identify mispriced companies with constructive engagement with boards and management to drive value creation.

The company aims to deliver absolute returns over the medium to long term and provide a strong fully franked dividend stream, appealing to Australian retail investors benefiting from franking credits. This activist investment style distinguishes TOP from passive index funds, introducing both engagement risks and opportunities.

Risks Include NTA Discount, Portfolio Concentration, and Macroeconomic Sensitivity

Investors should consider risks highlighted in the June 2026 update. The share price of 55.0 cents trades at a significant discount to the after-tax NTA of 87.3 cents, reflecting market pricing dynamics that may persist or widen depending on sentiment and performance.

Portfolio concentration is notable, with the top three holdings—Southern Cross Electrical Engineering, Zip Co, and 20 Cashews—comprising over 38% of portfolio value. Adverse developments in any of these could materially impact overall NTA. The Chairman also cited geopolitical volatility and uncertain central bank policies as factors affecting market and portfolio conditions. The one-year negative return of 1.34% versus an 8.11% index gain underscores potential short-term underperformance despite positive long-term results.