Half Yearly Report and Accounts as at 31 December 2020
Half Yearly Report and Accounts as at 31 December 2020
- AFIC invests in a diversified portfolio of Australian equities, seeking to provide attractive income and capital growth to shareholders over the medium to long term at a low cost.
- Half Year Profit was million $84.1, down from $146.1 million in the corresponding period last year.
- Difficult operating conditions arising from the COVID-19 pandemic meant investment income for the six months to 31 December 2020 was $95.2 million, down from $164.1 million in the corresponding period last year. The biggest reductions came from the major banks, BHP, Macquarie Group and Transurban, while a number of companies in the portfolio did not pay a dividend during the half.
- Despite the fall in the half year earnings per share to 6.9 cents, the interim dividend for the half year is 10 cents per share, fully franked, the same as the previous corresponding period. Part of the interim dividend this year has been funded from reserves.
- The six-month portfolio return, including franking, was 15.2% compared with the S&P/ASX 200 Index, including franking, which was up 13.7% over the same period.
- For the 12 months to 31 December 2020, the portfolio return, including franking, was 5.8%. The return from the S&P/ASX 200 Accumulation Index over this period, including franking, was 2.4%.
- The management expense ratio for AFIC is 0.10% (annualised), with no performance fees.
- Moving into the remainder of the financial year, we consider the portfolio is relatively well positioned in high quality companies which we believe are well placed to deliver earnings growth over the long term.
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