# MIR - Mirrabooka Investments



## System (6 September 2010)

Mirrabooka Investments Limited (MIR) is an investment company, specialising in investing in small and medium sized companies located with Australia and New Zealand.

http://www.mirra.com.au


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## piggybank (9 November 2013)

Update

Breakout after Fridays action.


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## Judd (22 January 2014)

MIR reported on 13 Jan.  Net operating profit up 3.1%, dividend maintained at 3.5c ff, DRP at a 10% discount.


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## SmokeyGhost (13 July 2016)

Old thread.  Nevertheless, MIR reported today.  Net profit up 16.6% over pcp.  Dividend of 6.5c ff plus 5c ff special.  LIC capital gain of 13.6c.

For my purposes of consistent cash-flow, I'll reinvest the special dividend via partial participation in the DRP.


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## Dona Ferentes (26 March 2020)

about, at 3.30pm Thurs to do a phone-in on how they run the portfolio. Slides on Website


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## Dona Ferentes (30 June 2020)

as mentioned in _*Thought Bubble *_thread, Mirrabooka's investment style is to look at the formulation and execution of a company's business strategy; and address key financial indicators, including 
- prospective price earnings relative to projected growth, 
- sustainability of earnings and dividend yield (including franking) and 
- balance sheet position including gearing, interest cover and cash flow. 

Twice a year, in Jul and Jan, the Half Yearly Review comes out, then an Annual Report in August. There's a narrative of what companies have been bought and sold in the previous HY, and the Annual (pp 44-49) publishes a list of all Security Holdings, showing number held in the current and previous FYs. It is interesting what they buy AND sell, initiate AND exit; this reveals quite active position taking (for what some think of as a boring Buy & Hold outfit). 

And for me, it has brought to my attention shares like AD8 (in and out, doubled my money), PKS (still holding). I missed APT  and WSP but the confirmation of trimming Freedom Foods helped me sell mine.

Next Half Yearly in about 2 weeks time. 

(_Hold_)


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## Belli (1 July 2020)

I hold MIR but don't take an avid interest in what the managers do.  If I do take an interest it's occasionally looking at the accounts and cashflow.  What it holds isn't of great importance to me.


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## Dona Ferentes (14 July 2020)

The significance of the impact of the COVID-19 pandemic on society and businesses is without parallel in Mirrabooka’s 20-year history. The degree of uncertainty created by the pandemic saw equity markets fall dramatically from their significant high point in February to a low point in March. Since then, markets have rebounded as investors responded to significant monetary and fiscal stimulus globally.

  The 12-month portfolio return, including franking, was 7.1%; the combined Small and Mid Cap 50 benchmark return over the corresponding period, including franking, was negative 1.9%. This outperformance is a very pleasing result, and has further reinforced our investment approach, over what has been a very challenging period. 

 Full Year Profit was $6.4 million compared with $8.9 million last year. The fall in profit was due primarily to a reduced contribution from investment income as companies reduced or suspended dividend payments. This fall was partially offset by an improved contribution from the Trading Portfolio. 

 The final dividend was maintained at *6.5 cents per share fully franked*. Total fully franked ordinary dividends for the year are 10 cents per share. No special dividend has been paid or declared for this financial year.

Strong contributors to Mirrabooka’s outperformance included Macquarie Telecom, Objective Corporation, Fisher & Paykel Healthcare, Breville Group and NEXTDC. 

The extreme volatility and deteriorating economic outlook over the financial year saw Mirrabooka further consolidate its investment portfolio from 63 to 52 holdings. Tough calls were required on exiting some interesting early stage companies, as funds were required to buy higher quality companies that were also sold off heavily during the year and are better placed for the deteriorating economic outlook.

Much of our buying through the recent market correction came through discounted rights issues and placements, in total $20 million was invested in 13 share issues. Our largest participation was in raisings by Auckland International Airport, Atlas Arteria, InvoCare, Reece, NEXTDC, Oil Search and Qube Holdings. Other purchases in recent share price weakness included Netwealth, Realestate.com, Xero, Infomedia, Cleanaway Waste Management and Breville Group, all of which are quality businesses which have strong positions in their respective industries.

_- battening down the hatches_


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## Belli (15 July 2020)

Dona Ferentes said:


>  The final dividend was maintained at *6.5 cents per share fully franked*.




All LIC Capital Gain too.  MIR is not necessarily "buy and hold" as many assume.  Saves me from selling shares to make an income.


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## Dona Ferentes (15 July 2020)

Belli said:


> All LIC Capital Gain too.  MIR is not necessarily "buy and hold" as many assume..



In fact, there has been major rotation, away from _interesting early stage companies_ towards_ higher quality and better placed_ ones (that should withstand the deteriorating economic outlook).

Despite the lower-income, Mirrabooka has not followed the trend from companies in its portfolios and used the lower earnings to reduce or drop dividends. The company maintained the final dividend for the year *subsidised by capital reserves.*

The final was a *steady* 6.5 cents a share after a *steady* interim of 3.5 cents a share.


> “We often build up reserves through capital gains and we can pay dividends out of that during these times that it becomes particularly valuable. Now is the time to keep using them,’’ managing director Mark Freeman explained in yesterday’s release


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## finicky (15 July 2020)

It has a lot of companies that I would be pleased to have individually. 
Also good that they participated in a lot of discounted capital raisings during Kung Flu as well as buying others on market during the price weakness.
They aren't carrying much cash though ($20m = 5% of p/f at June 30) - most of Wilson's LICs for example are at higher cash than that last I looked. 
No gold exposure I can see and I assume no short positions. In normal times I wouldn't be concerned.


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## Dona Ferentes (15 July 2020)

A key factor was Mirrabooka's ability to identify companies that benefit from a founder and owner at the helm. "We call them owner-driver businesses," Mr Freeman said. "It's where individuals usually the founder of the companies have large equity stakes and they run it like it's their own money, because it is."

That focus is a central factor behind Mirrabooka's top three shareholdings: *Macquarie Telecom Group*, New Zealand-listed *Mainfreight* and *Objective Corporation*. It is also the reason why Mr Freeman sees Macquarie Telecom as having an edge over NextDC in the booming datacentre business. "It's actually a great structural growth sector for the long term. And so we hold both *NextDC* and Macquarie Telco but Macquarie Telco had the added bonus of being also an owner-driver business," he explained.

The conviction is bourne out by the funds top investments. As at June 30 Macquarie Telecom was the fund's single largest holding and accounted for 5.5 per cent of the portfolio. NextDC was its ninth-largest holding at 3.1 per cent.

One of the exposures Mirrabooka sold out of in the year was *TPG Telecom*. "That has been an owner-driver business with David Teoh. But with the merger now, Vodafone have actually got 50.1 per cent I think. So they've got the dominant position. "I've still got a huge amount of respect for David Teoh, he's done an extraordinary job, but for what we're trying to do, it's just matured. And I just think it's going be more competitive now and his interest now has been watered down."

The fluid business and economic setting requires regular examination of portfolio companies, Mr Freeman said. "We have to constantly re-test and say, '_is this really a company that we think can be a strong business in this environment?' _And if they're not, perhaps it's better not to hold them," he said.

https://www.afr.com/markets/equity-...n-cautions-on-elevated-prices-20200714-p55bul

(_hold; lots_)


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## Belli (29 July 2020)

Dona Ferentes said:


> The final was a *steady* 6.5 cents a share after a *steady* interim of 3.5 cents a share.




Thank you.  I see the dividend is sourced from Capital Gains (if I read it correctly) and it has introduced a Dividend Share Substitution Plan.  The DSSP is only of passing interest though as it isn't of much interest to me.


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## Dona Ferentes (27 December 2020)

*Ross Barker* will retire as a Director of the Company, effective 31 January 2021.   Mr Barker has been involved with the Company since its inception in December 1998 and was Managing Director from February 2001 to December 2017. Mr Barker transitioned to a Non-Executive Director in January 2018 and has been a member of the Audit Committee since June 2019. 

_- will be missed._


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## Belli (31 December 2020)

For some reason MIR as been on a tear this year, especially for the first half of 2020/2021 FY.  I hold and will be looking forward to see what's the go on 14 January.

I know it held Afterpay at one stage but no longer.  Probably because MIR being ex-50 (one reason I have it) so Afterpay had to be sold.


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## Belli (31 December 2020)

Belli said:


> For some reason MIR as been on a tear this year, especially for the first half of 2020/2021 FY




Most surprising to me.  VSO comparison.


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## Belli (3 January 2021)

I posted a link in teh AFO thread to its DSSP ("Bonus Share Plan")

MIR being out of the same stable also has similar so for those who may be interested, here is the link.  Again, scroll down to the DSSP Rules and the Class Ruling from the ATO.









						Shareholders
					

Discover an easy way to invest in Australian companies with AFIC. Find security and dividend history, performance data, and reports for shareholders, advisors, and new investors.




					www.mirra.com.au
				




Seek professional advice if necessary of course.


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## Dona Ferentes (4 January 2021)

Two new Directors, to replace Ross Barker

Annette Kimmit, ex MinterEllison and EY, has been a Non-Executive Director and Chair of the Finance, Audit and Risk Committee of the Melbourne Business School since 2010. 
Greg Richards, ex JBWere/ GSJBW, recently retired from the Board of JB Hi-Fi Limited after being a non-executive director for 12 years including 8 years as non-executive Chairman. 

*Neither has any MIR shares *... will wait and see.


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## Dona Ferentes (6 January 2021)

Belli said:


> For some reason MIR as been on a tear this year, especially for the first half of 2020/2021 FY.



A curious comment. But there again, elsewhere, a music thread #6279, was this comment 







> Belli said: _This 'fat" lazy bastard doesn't follow individual shares and does not have an interest in them.  Sorry _.




MIR is not an index fund. It offers exposure to well-diversified portfolio of small to mid cap companies. It is on a tear because companies (shares) it holds have performed well. You can get a snapshot over the last year, through the monthly NTA announcements.

Top 20 Holdings are generally the same (4 new and 4 out, see below), and valuation of these holdings has contributed significantly to MIR doing so well:
end Dec 2019 ............ $218mill =  55% of total holdings
end Jun 2020 ............. $234mill =  63%
end Dec 2020 ............ $298mill =  59%

Some of the shares have streaked ahead. In the two six month periods, MAQ went from $10m to $20m to $24m, and Mainfreight (NZ listed) went from $20m to $18m to $32m. A year ago, only 12 holdings were > $10million, by end of 2020, the LIC held some 17 companies were larger than this amount

1  (1 last year) ..... MFT Mainfreight $32.4million ... 6.4% of total portfolio
2  (12) ......... MAQ Macquarie Telecom Group 24.6 ... 4.9%
3  (6) ............ ARB ARB Corporation 22.6 ... 4.5%
4  (7) ............ REH Reece 19.2 .... 3.8%
5  (new) ....... NWL Netwealth Group 15.6 ... 3.1%
6  (10) .......... BRG Breville Group 15.3 ... 3.0%
7  (3) ............ QUB Qube Holdings 14.7 ... 2.9%
8  (new) ....... NXT NextDC 14.4 ... 2.9%
9  (5) ........... SEK Seek 14.1 ... 2.8%
10 (11) ........ CAR CarsalesCom 13.1 ... 2.6%
11 (20) ........ XRO Xero 13.0 ... 2.6%
12 (2) .......... JHX James Hardie Industries 13.0 ... 2.6%
13 (9) .......... IRE IRESS 12.4 ... 2.5%
14 (new) ..... IVC Invocare 11.7 ... 2.3%
15 (4) .......... OCL Objective Corporation 11.4 ... 2.3%
16 (8) .......... EQT EQT Holdings 11.3 ... 2.2%
17 (19) ........ AUB AUB Group 11.0 ... 2.2%
18 (new) ..... RMD Resmed Inc 9.8 ... 1.9%
19 (16) ........ ALQ ALS 9.6 ... 1.9%
20 (13) ........ AIA Auckland International Airport 9.3 ... 1.8%

Dropped out are the following four. As the portfolio is actively managed, the displacement may have been by selling part or all, buying or adding to the new arrivals or just relative underperfomance.,
(14) RWC Reliance Worldwide Corp;
(15) COE Cooper Energy;
(17) WEB Webjet;
(18) BKW Brickworks


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## finicky (6 January 2021)

You've put it on my radar from past posts. Some good stock picking from them. I would likely favour MIR over the Wilson stable if buying another LIC in depressed times. Not sure, but that's the current vibe.


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## Belli (6 January 2021)

Dona Ferentes said:


> A curious comment. But there again, elsewhere, a music thread #6279, was this comment





Yep, as I have stated previously I hold MIR, in fact I first bought MIR in 2006 and now hold 27,000 personally and the SMSF holds just short of 50,000 of them.  To me it isn't a individual direct share.  Individual direct shares to me are things such as BHP or NAB.  I don't bother following those as the LICs and ETFs both I and the SMSF already have them.  SMSF and personal combined they do, however, account for only 7% of my total portfolio.

All clear now?


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## Dona Ferentes (14 January 2021)

Half Yearly just out:

_• Profit for the half-year was $3.4 million.  This is 22.8% down on the previous corresponding period.  Dividends and distributions received decreased by 29.0%. _
_• Revenue from operating activities was $3.3 million, 31.0% down on the previous corresponding period.  This excludes capital gains on investments. 
• The interim dividend of 3.5 cents per share fully franked (at 30%), the same as last year’s interim dividend, will be paid on 16 February 2021 to ordinary shareholders on the register on 25 January 2021.  There is no conduit foreign income component of the dividend. _
_• All of the interim dividend is sourced from capital gains, on which the Company has paid or will pay tax. The amount of the pre-tax attributable gain, known as an “LIC capital gain”, attached to this dividend is 5 cents _

- _Despite the overall strength in the market, we have found opportunities to add new companies to the portfolio.  NIB, Superloop and Nanosonics were purchased through temporary price weakness and Nuix was added through an initial public offering. The most material selling in the 6-month period has come from trimming some of the strongest portfolio performers, Objective Corporation and HUB24, and exiting our positions in Premier Investments and OptiComm, which was taken over.  Selling activity has otherwise been relatively subdued as we remain confident in the stocks that we own.
- Mirrabooka remains focussed on long term opportunities in high quality companies and we are confident that with patience future market volatility will provide additional opportunities to invest. At the end of December 2020, Mirrabooka was close to fully invested and has therefore announced a *Share Purchase Plan *with this result to provide additional funds for the portfolio._

As the Half Yearly states, the previous 12 months have been very favourable, and exceeded relevant indexes
Portfolio return (including the full benefit of franking) – to 31 December 2020. Includes dividends and Franking, after costs
Period ........ *MIR *.............. Combined *Small Ords / Mid Cap 50 Accumulation Index*
6 months ... 33.0% ..... ..... 21.9%
One Year .... 29.2% ..... .... 13.8%
Five Years ... 14.3%pa ..... 13.1%pa
Ten Years ... 14.7%pa ....... 8.0%pa



I hold MIR in my SMSF having transferred 40,000 from my name in 2007. I have participated in most Corporate Events along the way, SPP and Rights issues, and also sold a few,,,, hence some divergence from MIR numbers. I have generated IRR numbers for my holdings, to end Dec 2020:
One Year ...  26.28%
Three Yrs ... 14.04%pa
Five Years ... 12.71%pa
Ten years .... 16.31%pa
Since 2007 ... 11.54%pa


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## Belli (15 January 2021)

Aside from the dividend, more informative is the new acquisitions including a placement with an IPO for "The Bike Exchange"  It also seems MIR hasn't splashed money around for a lot of IPO's which tells me the management is rather cautious about many.  And it's given the flick to "Premier Investments."

Shares issued under the SPP will be entitled to 50% of the dividend declared for the year ending 30 June 2021.  In that case an temporary ASX code until converted after that dividend.


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## Dona Ferentes (15 January 2021)

I was surprised to see Nuix in there, as a new acquisition; it is not really a small cap stock. New, yes, but the Market Cap is now $2.7billion. Entry via the IPO at $5.31, putting in $3.56million, has proven to be advantageous as NXL is now trading above $9

Bike Exchange (IPO to be listed in February 2021) - they must be confident it is a sensible position. Likely to list BEX on 09 Feb







> _Operating an online marketplace that operates globally in eight countries across four geographical areas. The marketplace provides an efficient, technology‑driven platform to connect consumers with retailers of bicycle products and accessories through a convenient, transparent and efficient platform_.




And I remember they did a similar exercise with MIRN a while ago. Raising $40million in the SPP is significant as M/C is about $400million. The price at $3.13 per new share (or VWAP calc if lower) is still above current NTA, if only a bit, with at least 3c discounted for the half dividend, I'd think.


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## Belli (15 January 2021)

Dona Ferentes said:


> I was surprised to see Nuix in there, as a new acquisition; it is not really a small cap stock




I had a look at the holdings basket for VAS.  Nuix doesn't appear for some reason. And on that point it is even more strange as VAS is supposed to hold around 300 companies but according to its product data it holds 200 securities.  Most unusual.


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## Belli (15 January 2021)

Belli said:


> I had a look at the holdings basket for VAS.  Nuix doesn't appear for some reason. And on that point it is even more strange as VAS is supposed to hold around 300 companies but according to its product data it holds 200 securities.  Most unusual.




Darn you're careless @Belli.  Look at VAS not STW and having done so, NXL does not appear in the VAS holdings either which means NXL fits with MIR's mandate of ex-50 (and ex-306 for that matter.)


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## Dona Ferentes (15 January 2021)

NXL is #135 on ASX market cap. $2.9bill.








						Company directory
					

Search, sort and filter the full list of ASX companies. Link to all company details and share prices.




					www2.asx.com.au


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## Belli (15 January 2021)

Dona Ferentes said:


> NXL is #135 on ASX market cap. $2.9bill.




Ah, I see.  Good find.  Notice it was listed in early December 2020 so it is possible S&P has yet to advise of any rebalance to the index which could be the reason VAS doesn't have it in its list of holdings.  One of those curious things.

No matter. MIR has it and has applied its ex-50 mandate it would seem.


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## Dona Ferentes (18 February 2021)

_SPP applications from 2,015 eligible shareholders (representing a participation rate of 28%) totalled $38.88m. There was no scale back of applications under the Plan. 

The Company further advises that the price set in order to calculate the number of shares to be issued to participants in the 2021 Share Purchase Plan is* $3.10 per share *and the new SPP shares (ASX : *MIRNA*) will be issued on Tuesday 23 February 2021 and tradeable on the ASX on Wednesday 24 February 2021. 

Shareholders are reminded that the new SPP shares issued will be eligible for fifty per cent of the final dividend that may be declared in respect of the financial year ending 30 June 2021. These shares will trade under the normal ASX code: MIR after existing ordinary shares go ex the entitlement to the final dividend in July 2021_.

- not huge participation, but significant commitment by those that did. Increase in FUM of 7.5%; buy well, MIR


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## barney (18 February 2021)

Dona Ferentes said:


> _SPP applications from 2,015 eligible shareholders (representing a participation rate of 28%) totalled $38.88m. There was no scale back of applications under the Plan. _




Know nothing about the Stock, but the Chart is almost picture perfect since the Covid hit    I'll be quiet though; Don't want to put the mocker on it!


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## Dona Ferentes (24 February 2021)

Dona Ferentes said:


> _SPP applications from 2,015 eligible shareholders (representing a participation rate of 28%) totalled $38.88m. There was no scale back of applications under the Plan. _



Some 8 Sells of MIRNA already listed, ranging from $3.30 to 3.36.... and *all *for 9677 shares, which would be the max allocation for $30K in the SPP.

_- potential $2K scalp._


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## Belli (17 March 2021)

For some reason unknown to me, MIR hasn't yet issued shareholders with a notification of allocation of MIRNA shares which includes the price paid.  Maybe it isn't going to which is rather strange.  They were sent for the 2008 Rights Issue, the SPP in 2010 and that of 2015*.

The way I work, the Accountant and Auditors will need it for EoFY Financial Statements.

No matter. I've got the CHESS Notice so I'll get the issue price from the MIR web-site, combine both into one PDF document and keep along with all other records of share transactions I have in cloud, hard disk, NAS and external hard disk backups.  I never rely on third parties to retain the necessary records.

*Edit:  checked for a different entity. Also issued for the 2003 Rights Issue and the 2004 SPP.


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## Dona Ferentes (18 March 2021)

Mirrabooka has a Shareholder Teleconference/ Webinar coming up (no more Public meetings in selected Capitals)

the company has just put out an accompanying set of slides for this event. There is nothing new / market sensitive but I will put up some slides.  I like p12.


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## Dona Ferentes (19 March 2021)

With the recently raised $38.9M .... some of the SPP proceeds have been invested across a number of companies:

Ansell ANN, Iress IRE, InfoMedia IFM, Select Harvests SHV, Dominos DMP, Fineos FCL, Temple & Webster TPW, Fisher & Paykel Healthcare FPH.

_- nothing too outlandish there. Growth and dividends; and mainly adding to existing holdings_


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## Dona Ferentes (27 June 2021)

Exploring some of our smaller stocks


> _We often talk about the larger companies in our portfolio, but we have a number of smaller stocks that are growing both as a business and as a position in our portfolio. [Two Portfolio managers] ... discuss the performance and position of four stocks: Xero, Mainfreight, Goodman Group and Fisher & Paykel Healthcare Corporation_.



https://www.afi.com.au/news/exploring-some-...-smaller-stocks

That was from AFI, the sister LIC to Mirrabooka. Three of the four mentioned are held by MIR as well and Mainfreight is the top holding in the portfolio


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## Dona Ferentes (30 June 2021)

MIR hitting all time highs, getting to $3.54 today. 

Final Results for the year are one of the early cabs off the rank, coming out on Wed 14 July. Generally, the August dividend is higher than Feb one, running 6.5c compared to 3.5c historically, or 10c ff for the year. Special dividends have been a feature quite frequently, and there should be some LIC Capital Gain to pass through for tax reasons. A few holdings in the portfolio have gone; Opticomm was taken over and I notice QUB out of the Top 20 - #7 and $15m in Feb and not there in March. Probably a few other disposals as well.

And when the SPP raising of MIRNA goes ex-dividend, these shares will be folded into MIR. 

(HOLD)


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## Dona Ferentes (14 July 2021)

Mirrabooka has announced its Annual Results, and jolly healthy ones!


The 12 month portfolio return for Mirrabooka including franking of *50.9%,* was well ahead of the combined Small and Mid Cap 50 benchmark return over the corresponding period, including franking, of 35.2%. The outperformance over both the short and long term is a very pleasing result, and further highlights the resilience of our investment approach.  
The Full Year Profit was $6.4 million, in line with the result last year. The fall in the contribution from investment income as companies reduced or suspended dividend payments was offset by an improved contribution from the Trading Portfolio. 
Adjustments made to the portfolio though the period, reflecting the increased valuation risk in several holdings following very strong recent performance, produced realised gains after tax of $29.3 million. In the corresponding period last year realised gains after tax were $5.2 million.  
The Company maintained the *final dividend *at *6.5 cents per share fully franked. A special fully franked dividend of 2.0 cents per share* has also been declared following the strong realised capital gains for the year. This brings total dividends for the year to 12.0 cents per share, fully franked versus 10 cents per share fully franked last year. Shares issued under the share purchase plan in February 2021 are entitled to fifty percent of the total final dividend, which is 4.25 cents per share fully franked.  


*Major acquisitions (above $5 million)* (including using the proceeds from Feb SPP)
PEXA Group (participation in IPO) 
FINEOS Corporation (includes participation in placement @$4.26 per share) 
 NIB Holdings  
Corporate Travel Management  
Iress  

*Other additions to portfolio:*
Superloop 
Select Harvests 
IDP Education 
Lark Distilling Company
PSC Insurance Group 
Nanosonics 
Bike Exchange 
Domino's Pizza Enterprises 

*Major Disposals/ Reductions*
Objective Corporation 
Qube Holdings
Reece
Brickworks (total disposal #) 
HUB24 

The other high-profile IPO that Mirrabooka participated in was Nuix. However, this position was sold relatively quickly without loss following signs that it would not meet our initial expectations.


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## Belli (14 July 2021)

According to the ASX announcement MIRNA shares qualify for DRP/BSP which is for both MIR and MIRNA is as a 2.5% discount.  How the company applies this to the MIRNA shares will be interesting.

Both the ordinary dividend and special dividends were sourced from Capital Gains so an LIC CG Discount will apply.


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## Dona Ferentes (14 July 2021)

Belli said:


> According to the ASX announcement MIRNA shares qualify for DRP/BSP ...  How the company applies this to the MIRNA shares will be interesting.



Good point.


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## Belli (14 July 2021)

Dona Ferentes said:


> Good point.




I suspect it will be based on the DRP/BSP price of MIR shares given this.






So I am guessing MIRNA, when converted to MIR shares, will carry the 4.25c dividend across but the issue price will be according to this.  Just a guess.


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## Dona Ferentes (3 September 2021)

with reporting season just behind us, and some small caps coming out with great results, it is interesting to see the NTA for MIR move *up* *nearly 9% *for the month, from $3.47 to $3.77.

MIR shares are still at a premium to the  NTA, though this has dropped from near ten percent to less than 5.

- _makes DRP participation at 3.70 a better play, and the now -converted MIRNA has delivered 25% in the 6 months _


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## Belli (4 September 2021)

The movement in the NTA is interesting.  This is also informative to some extent.

Top 20 investments in August compared with Top 20 in July.

It is possible the NTA can change month to month without the mangers doing a thing.  Other buyers/sellers of the holdings could be doing the work on changing values.


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## kenny (4 September 2021)

One of the best aspects of Mirrabooka IMO is that they _don't_ have the copycat portfolio of Big Banks & miners and a sprinkling of "speccies" to generate alpha and justify their management fees. The promise is MIR aims to do this whilst behaving like one of those old school LIC's in their treatment of sharehodlers (sic).


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## Belli (4 September 2021)

It'd be nice if I could buy stack loads of them again around the $1 mark not long after they listed.  $1.03, $1, $1.32.  Thems were good times. Still, I cannot complain really when it's throwing five figure amounts into the bank accounts.


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## Belli (5 October 2021)

Dona Ferentes said:


> Mmm, nice lift off (from AFI )
> 
> 
> 
> ...




From ARB thread.  I remembered MIR was to hold its meeting today and also held ARB.  This is a screen shot of part of the presentation.  Both AFI and MIR look like they both bought ARB around the same time.


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## divs4ever (5 October 2021)

interesting ,

 it probably won't sway me into buying into MIR

 but it would be interesting to see if some other LICs  would provide a similar  chart of their top 20 holdings 

 fancy spotting EQT before 2007  , and ALQ circa 2018 would have been a bold move as well , well done management 

 cheers


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## Dona Ferentes (18 January 2022)

MIR six monthly report out. More of the same.  Paying a 3.5c ff dividend. Performance satisfactory, above benchmarks.

*Portfolio Changes *
_We have continued to assess the medium to long term earnings outlook for companies under our investment consideration. In recent times, we have been factoring in an increasing interest rate outlook in assessing the appropriate valuation to apply to these earnings. 
 This valuation focus saw us exit *Xero*, which is now a 50 Leader Index stock, as well as reducing our very successful investments in *Objective* Corporation and *ARB *Corporation. *Qube *Holdings and *Tassal *Group were the other material sales, both positions exited after long holding periods, as we view their prospects for growth as having matured. 

 Several new positions were initiated during the half year:  _

_ *Computershare *was reintroduced into the portfolio in the early months of the financial year, before market interest rate expectations began to increase. It is a high-quality business that is relatively mature, but we felt that the market was mispricing the very significant benefit that even modestly higher interest rates would have on its earnings.  _
_* JB Hi-Fi *was purchased as we felt that a short term market focus on a likely moderation in sales was providing an attractive opportunity to purchase the market leader in the home electronics category, where product innovation continues to provide a long term spending tailwind. _
_ *Peet *was an existing small holding, that we added to, as we view its residential landbank as being undervalued by the market. _
_We also participated in the *Lark Distilling Co *capital raising, which supported its purchase of strategically important whisky distillery assets in Tasmania. _
_Other smaller additions were Santos (as a result of the merger with Oil Search) , Bapcor, Deterra Royalties. Worley. IPD Group plus The Environmental Group   _


----------



## Belli (18 January 2022)

Dividend sourced from capital gains.  Pre-tax attributable gain is 5c.  Tax deduction available for many investors as a result.


----------



## Dona Ferentes (18 January 2022)

Belli said:


> Dividend sourced from capital gains.  Pre-tax attributable gain is 5c.  Tax deduction available for many investors as a result.



Almost wish I held in my own name, not the SMSF!!


Combining the commentary;


> _In an environment where interest rates have been very low and economic activity has recovered strongly from the COVID-19 pandemic, our investment considerations are factoring in higher interest rates and increasing costs over the medium term. As such, pricing power has been a particular focus in our assessment of the quality of a company and its position in the portfolio,_



with the outlook;


> _Elevated valuations following the strength of recent share price performance to the end of December of several large Mirrabooka portfolio holdings provides a potential headwind to short term portfolio performance,_



I suspect we're in for some sideways performance, in 2022. Dividend should stay at current settings.


----------



## Belli (19 January 2022)

Dona Ferentes said:


> Almost wish I held in my own name, not the SMSF!!





LOL.  MIR is in my personal holdings as well as in the SMSF but yeah.  I personally hold the same LICs/ETFs as the SMSF but not in the same proportions though.


----------



## Dona Ferentes (28 January 2022)

and MIR keeping the market informed, as did AFI



> The recent fall in markets through January 2022 has meant Mirrabooka’s Net Tangible Asset Backing per share (NTA) has fallen by approximately 10% since 31 December 2021.   The NTA at 31 December 2021 was $3.73 per share (before tax).



and now, ex dividend on the 24 Jan, the shareprice is travelling higher than any calculated fair value based on NTA. back of envelope, ($3.73 - 37c - 4c)  takes it to $3.33, while shares are changing hands at $3.80 today....


----------



## Dona Ferentes (16 February 2022)

Review out:
Management Expense Ratio (Annualised)...  0.41%  ................. 0.46%  in 2020
Total Portfolio (Inc. Cash) at 31 Dec  .............$667.9m ............... $511.9 million  in 2020

also noticed one new holding (_other smaller additions were Santos ,<as a result of the merger with Oil Search> , Bapcor, Deterra Royalties. Worley. IPD Group plus The Environmental Group ) _being $500K in ATA Atturra, which listed late Dec


----------



## Dona Ferentes (3 March 2022)

Mirrabooka Investments Limited Share Purchase Plan

 Directors have decided to make an offer to shareholders under a Share Purchase Plan (SPP) to raise additional equity for investment purposes.

Subject to other participation requirements, shareholders with a registered address in Australia and New Zealand on the register at 7.00pm (AEDT) on Wednesday 2 March 2022 will be able to invest up to A$30,000 in the Company’s shares.
The shares issued under the SPP will be eligible for fifty per cent of the final dividend that may be declared in respect of the financial year ending 30 June 2022. As a result, shares issued under the SPP will trade under a separate ASX code: MIRNB.  These shares will trade under the normal ASX code: MIR after existing ordinary shares go ex the entitlement to the final dividend in July 2022.
The SPP issue price will be the lower of $3.18 per share or by applying a 10% discount to the volume-weighted average price of Mirrabooka shares traded on the Australian Securities Exchange (ASX) and Cboe Australia automated trading systems over the 5 ASX trading days up to and including the day on which the SPP is scheduled to close (4 April 2022), rounded down to the nearest cent. Therefore, the maximum price that eligible shareholders will pay is $3.18 per New Share, which was calculated by applying a 10% discount to the volume weighted average price of shares traded on the ASX and Cboe Australia automated trading systems over the 5 ASX trading days from 25 February to 3 March 2022 inclusive.
Mirrabooka will announce the final issue price for the SPP after the offer closes.
Directors retain the right to scale back the Plan.
Mailed to shareholders on Friday 11 March 2022.
Proposed that applications will close on Monday 4 April 2022


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## Dona Ferentes (4 March 2022)

> *Mirrabooka *Investments Limited *Share Purchase Plan*





> ...The SPP issue price will be the lower of $3.18 per share or by applying a 10% discount to the volume weighted average price of Mirrabooka shares traded ...




_this seems to be the standard reaction to listed price of any company raising capital, to have selling down to the new offer price, and how very quickly it seems to fall!! Closed at 3.17 (admittedly on a bad day and a bad week, with Ukraine unravelling)

In the case of MIR, the reality is the share price had been above the NTA (last published at $3.11 for end-Feb) so there could be an argument there is even more capacity to fall, but how does that explain the trading above $4 only recently. Admittedly on low volume, and before the ex dividend  event. 

It makes it hard to want to add to a holding any other way, if the likelihood of a capital raising is going to see that earlier invested capital under water. _


----------



## Dona Ferentes (28 March 2022)

MIR update (shareholder meeting) about to start.  1:30

noticed they have sold out of Lark , SuperLoop, picked up IPD and EGL


----------



## Belli (28 March 2022)

Dona Ferentes said:


> MIR update (shareholder meeting) about to start.  1:30
> 
> noticed they have sold out of Lark , SuperLoop, picked up IPD and EGL




I also notice MIR also sold Deterra Royalties which was first mentioned as being held in Feb this year.  Interesting the MER has come down from 1.2% in 2003 to 0.41% now.  No idea what the portfolio size was in 2003 but it does give an indication to favour those LICs with relatively fixed overheads as the greater the portfolio the less the MER can be.


----------



## Dona Ferentes (28 March 2022)




----------



## sptrawler (28 March 2022)

Interesting that MIR were $3.70ish in Sept 2021 and now are $3.30ish, when the market has been fairly bouyant @Dona Ferentes ?


----------



## Dona Ferentes (28 March 2022)

sptrawler said:


> Interesting that MIR were $3.70ish in Sept 2021 and now are $3.30ish, when the market has been fairly bouyant @Dona Ferentes ?



SPP launched. ... with attractive pricing mechanism (Priced at the lower of $3.18 ora 10% discount to the volume-weighted average price of Mirrabooka shares over the 5 ASX trading days up to and including the day on which the SPP is scheduled to close (4 April 2022).)

also it was well over NTA (slide 12 ....some 10+%)


----------



## sptrawler (28 March 2022)

Dona Ferentes said:


> SPP launched. ... with attractive pricing mechanism (Priced at the lower of $3.18 ora 10% discount to the volume-weighted average price of Mirrabooka shares over the 5 ASX trading days up to and including the day on which the SPP is scheduled to close (4 April 2022).)
> 
> also it was well over NTA (slide 12 ....some 10+%)



Thanks for that Dona, I think I will be adding them to my LIC holdings.


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## Dona Ferentes (28 March 2022)

sptrawler said:


> I think I will be adding them to my LIC holdings.



It's interesting; I got the sense from the meeting that there was a bit of rueful reconsideration about the SPP. As per AFI (_asked if there would be a raise, the answer was, sensibly, that pricing was difficult as that LIC was well above NTA but current holders shouldn't be disadvantaged/ diluted)_), the pricing looked tricky but the desire to get extra funds in the door high ("_end December 2021, Mirrabooka was close to fully invested _")_.  

But where are we now? _ Between results at 17 Jan and SPP announced on 03 Mar, the SP has traded from $4+ to around $3.55. Mainly down, as with the rest of the market (-9%) and in fact a little more ( down 15%) ,..... slide 15, Jan n Feb_ ; "Rotation - market sells highly valued recent winners, buys resources_".

With the terms of SPP pricing (SPP issue price will be the lower of $3.18 per share or by applying a 10% discount to VWAP) , looking at the last few weeks I'd *guess *a VWAP of $3.30 and hence an issue price of $3.00 (not even a napkin employed) which is likely below the NTA. So, all guesswork, the lower calc should throw up some cheap MIRNB. And if others think the same way and applications flow, Directors retain the right to *scale back *the Plan.


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## divs4ever (28 March 2022)

Dona Ferentes said:


> It's interesting; I got the sense from the meeting that there was a bit of rueful reconsideration about the SPP. As per AFI (_asked if there would be a raise, the answer was, sensibly, that pricing was difficult as that LIC was well above NTA but current holders shouldn't be disadvantaged/ diluted)_), the pricing looked tricky but the desire to get extra funds in the door high ("_end December 2021, Mirrabooka was close to fully invested _")_.
> 
> But where are we now? _ Between results at 17 Jan and SPP announced on 03 Mar, the SP has traded from $4+ to around $3.55. Mainly down, as with the rest of the market (-9%) and in fact a little more ( down 15%) ,..... slide 15, Jan n Feb_ ; "Rotation - market sells highly valued recent winners, buys resources_".
> 
> With the terms of SPP pricing (SPP issue price will be the lower of $3.18 per share or by applying a 10% discount to VWAP) , looking at the last few weeks I'd *guess *a VWAP of $3.30 and hence an issue price of $3.00 (not even a napkin employed) which is likely below the NTA. So, all guesswork, the lower calc should throw up some cheap MIRNB. And if others think the same way and applications flow, Directors retain the right to *scale back *the Plan.



 i am GUESSING management  suspect a crash is coming ( but maybe they are eyeing some upcoming IPOs ) and decided to cash up , hoping they will look gifted in a year or two  time  , i notice some rivals have been trimming selected holdings , will others have benefited from take-over activity ( crystallized profits )

 interesting times coming  good luck  holders


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## Dona Ferentes (28 March 2022)

divs4ever said:


> i am GUESSING management  .....



the commentary wasn't along those lines.


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## Belli (28 March 2022)

Dona Ferentes said:


> Directors retain the right to *scale back *the Plan.




Thanks for the analysis @Dona Ferentes.

In regard to a potential scale back, while possible, I don't consider it will happen.  Unlike the MIRNA SPP, this one isn't capped.  The maxium number of shares to be issued is as per the announcement on 3 March is below.  By my calcs - and I could be incorrect -  this number assumes all shareholders apply for the maximum amount of $30k and at $3 per share that would be a max of $156m raised.  Strongly doubt that will occur.








With the previous SPP I did ask the company why it was capped.  The response was the investment team having identified possible placementshad made a recommendations along these lines  to the Investment Committee and the Board.  That and the view of holding too much cash would have had a drag on any performance.


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## divs4ever (28 March 2022)

Dona Ferentes said:


> the commentary wasn't along those lines.



 not many fund managers   would  make that argument  when asking for extra funds  to share-holders ( to the corporate  bankers , MAYBE )

 however  i believe MIR uses  an options strategy  , so should  have some useful trading skills  among them 


Belli said:


> That and the view of holding too much cash would have had a drag on any performance.




 again ,  i would have avoided  mentioning SOME fund-managers  were on the acquisition trail  and usually find LICs with cash reserves particularly  attractive , so being low cash could be seen as a defensive stance  ( against predators ) but as optimistic  by the investors


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## peter2 (28 March 2022)

@Dona Ferentes Thank you for the series of posts and your opinions. I'm not a trader of LICs as I'm a harsh critic of their performances.  However they do have short periods of outperformance that can boost longer term averages. *MIR* outperformed in a two year period 2012-2014, then matched the market for six years until after the Covid selloff (2020) where they really did well (+100%).

Reasons for the recent selloff  (that reduces their recent outperformance) are hard to know but they could be due to uncertainty about the SPP pricing or that their portion of banks and LC materials is much lower than the index. As we know the recent rally has been mostly due to rallies in the banks and large cap materials. 

If the banks and LC materials continue to rally then the rest of the market will join in quickly. Raging inflation and fuel costs will dampen bullish sentiment though. I notice that the largest holding in the *MIR* portfolio is Mainfreight (logistics). It won't like the higher fuel costs. 

*MIR* management seem to be more flexible than others as I read they actually sell their winners and redeploy that capital into new positions. 

I'll slip *MIR* into the reversal watchlist and keep an eye on it as an interest to see what happens after the SPP is done.


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## Belli (28 March 2022)

divs4ever said:


> however i believe MIR uses an options strategy , so should have some useful trading skills among them




Hardly relevant.  The trading portfolio is around 1% of the investment portfolio.  It's a very minor activity overall.  Have you bothered to look at the composition the investment team?



divs4ever said:


> again , i would have avoided mentioning SOME fund-managers were on the acquisition trail and usually find LICs with cash reserves particularly attractive , so being low cash could be seen as a defensive stance ( against predators ) but as optimistic by the investors




No relevance to the subject matter.  Another of your red herrings.


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## Ferret (28 March 2022)

peter2 said:


> I notice that the largest holding in the *MIR* portfolio is Mainfreight (logistics). It won't like the higher fuel costs.



AFIC also have a large holding of Mainfreight and at there Investor briefing today they were asked about the effects of rising fuel costs on Mainfreight.  

They answered that Mainfreight use an owner-driver model, so the company is not directly effected by fuel costs.


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## Dona Ferentes (1 April 2022)

Dona Ferentes said:


> ....With the terms of SPP pricing (SPP issue price will be the lower of $3.18 per share or by applying a 10% discount to VWAP) , looking at the last few weeks I'd *guess *a VWAP of $3.30 and hence an issue price of $3.00 (not even a napkin employed) which is likely below the NTA. So, all guesswork, the lower calc should throw up some cheap MIRNB. And if others think the same way and applications flow, Directors retain the right to *scale back *the Plan.



and Mirrabooka has 'nudged' the punters with an announcement


> _The estimated net tangible asset backing (NTA) before tax as at 31 March 2022 is $3.20 per share.....
> ..... Directors note the Company’s share purchase plan offer to shareholders is due to close on Monday 4 April 2022_.


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## Belli (1 April 2022)

Dona Ferentes said:


> and Mirrabooka has 'nudged' the punters with an announcement




So an ~6% discount to NTA based on those numbers.


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## Dona Ferentes (1 April 2022)

Belli said:


> So an ~6% discount to NTA based on those numbers.



Close. Looking at 3.03 (?), but don't forget MIRNB carries a lower dividend, likely 3.25c FF, so have to knock off 5c. Still, it's on the right side of having a benefit.


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## Dona Ferentes (7 April 2022)

Dona Ferentes said:


> Close. Looking at 3.03 (?)




SPP closed on 4 April 2022 with applications from 2,069 eligible shareholders (representing a participation rate of 27%) totalling $42.2m. There was *no scale back *of applications under the Plan.  

The Company further advises that the price set in order to calculate the number of shares to be issued to participants in the 2022 Share Purchase Plan* is $3.01* per share and the new SPP shares (ASX:MIRNB) will be issued on Monday 11 April 2022 and tradeable on the ASX on Tuesday 12 April 2022.


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## Dona Ferentes (10 May 2022)

Dona Ferentes said:


> 2022 Share Purchase Plan* is $3.01* per share and the new SPP shares (ASX:MIRNB)  issued on Monday 11 April



a month later and  MIRNB is trading back down to $3.01 (got to 3.24 in April)

I trust the powder is dry and opportunities abound

From the presentation at the time :


> _Funds to be raised .. support Mirrabooka purchasing preferred quality companies in the recent market selloff and will provide capacity to take advantage of likely further share market volatility_


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## Dona Ferentes (13 July 2022)

The final dividend of 6.5 cents per ordinary share fully franked, the same as last year (3.25 cents for holders of the MIRNB shares, also fully franked), will be paid on 17 August 2022 to shareholders on the register on 28 July 2022.
In addition, a special dividend of 2 cents fully franked will also be paid to MIR ordinary shareholders on the same dates (and with the same record date and ex-dividend date) as the final dividend. The equivalent amount for the MIRNB shares is 1 cent.
Total dividend for the year for an MIR ordinary share is therefore 12 cents, in line with last year.
The entire 6.5 cents of the final dividend and the 2 cents special dividend are sourced from capital gains, on which the Company has paid or will pay tax. The amount of the pre-tax attributable gain, known as an “LIC capital gain”, attached to this dividend is 12.14 cents. This enables some shareholders to claim a tax deduction in their tax return.


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## Dona Ferentes (13 July 2022)

Portfolio Adjustments - FY to 30 June

Computershare and Worley were *new holdings* that we bought well through the period, having been two of the strongest performing stocks on the ASX since our purchase during the financial year. JB Hi-Fi was also an addition to the portfolio, which we are comfortable will be a solid long-term holding for the portfolio.
We participated in *two smaller company IPOs*, IPD Group which has performed well and Chrysos Corporation which has seen a meaningful share price fall since IPO.  We believe both remain interesting companies for the long term, that fit with our investment process as small, earlier stage investments.
The market selloff during the year also saw us *add most materially to existing* positions in Dominos Pizza Enterprises, Nanosonics, Peet, REA Group, Temple and Webster, IRESS and Corporate Travel Management. Many of these have since sold off further, highlighting the challenge of identifying share price lows in a falling market.  Our process in these situations remains consistent. We continue to assess the relative long term prospects of each investment opportunity and look to add to positions as prices fall, where our long term conviction remains strong.
Much of our *selling *over the year reflected our concerns about extreme pricing across a number of our highly rated growth stocks. We exited Xero on this basis, as well as reducing positions in Seek, Objective Corporation, ARB Corporation and Reece at very high prices that have since fallen materially.  These sales were the largest contributors to the significant realised capital gain of $36.4 million that was recorded for the financial year.
Thirteen stocks were *exited *from the portfolio, many of which had performed well for us historically, but where we had reduced our conviction, including Qube Holdings, NIB Holdings, Atlas Arteria and Tassal.  As is generally the case in emerging company investing, there were others that were sold as our expectations were not being met, including Lark Distilling Co. and Superloop. Outlook


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## Belli (13 July 2022)

Thanks @Dona Ferentes.  I was about to go and have a look at the announcements but you've saved me the trouble.


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## finicky (13 July 2022)

I take most of my measures from Commsec summaries. I've never understood the summary of MIR's historical performance. Why are the ROEs so miserably low and the PE sky high? The LIC seems a good performer although I am not sure why I think that - some wised up followers of it maybe, the dividend payments and the stock selections? Is it some accounting thing that they do, that WAM for example does not? MIR'S dividends well outstrip their eps - do they somehow subtract dividends *before* calculating earnings? Weird, it's been enough to put me off in the past, too hard.


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## Belli (13 July 2022)

finicky said:


> MIR'S dividends well outstrip their eps




LIC Capital Gains are excluded from EPS calculations.  AASB requirements.  See Note A5 to the accounts.


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## finicky (13 July 2022)

Thanks, that clarifies . I guess that means WAM or AFI for examples get more of their earnings from dividends than capital gains then.


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## Dona Ferentes (13 July 2022)

_As the statement said_:
"Much of our *selling *over the year reflected our concerns about extreme pricing across a number of our highly rated growth stocks. For XRO,  SEK, OBJ, ARB, REH, we exited as well as reducing positions at very high prices.... These sales were the largest contributors to the significant realised capital gain of $36.4 million that was recorded for the financial year."

_If you think about it, small cap companies are either small dividend payers or reinvest earnings for growth, hence alot of the MIR payout comes from the realised capital gain. _


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## finicky (13 July 2022)

Dona Ferentes said:


> If you think about it,



There's the catch but I _resent_ your pointing it out


----------



## Belli (13 July 2022)

@finicky I had another look at the financial statement.







And that is where it starts to make some sense as in respect of the first part dividend income increased to $10.32m from $7.026m pcp.

In regard to the second, when shares are sold the profit is transferred from Revaluation reserve to realised capital gain reserve and it is from that the company is able to identify realised gains from which it can pay an LIC Capital Gain.  Note A2 to the accounts has details on these matters.

And surprise, surprise, Retained Profits increased by $6.726m so I can guess where the FY Profit was allocated.


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## finicky (13 July 2022)

@Belli sorry but the beachball that is my intellect and attention bobbed to the pool's surface early in that explanation. But the first post clarified it very well for my purpose. Thanks for the effort!


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## Belli (13 July 2022)

finicky said:


> @Belli sorry but the beachball that is my intellect and attention bobbed to the pool's surface early in that explanation. But the first post clarified it very well for my purpose. Thanks for the effort!




Yes, it can get that way.  In the past I was an avid reader of the financial statements.  Not so much now but it was a good education.


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## Belli (22 July 2022)

A heads up for MIRNB holders.  Coincides with the date they go ex.


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## InsvestoBoy (22 July 2022)

peter2 said:


> @Dona Ferentes Thank you for the series of posts and your opinions. I'm not a trader of LICs as I'm a harsh critic of their performances.  However they do have short periods of outperformance that can boost longer term averages. *MIR* outperformed in a two year period 2012-2014, then matched the market for six years until after the Covid selloff (2020) where they really did well (+100%).




One could ask, is comparing MIR to the market index made up of large caps heavily weighted to financials and resources a fair comparison?

They're a small cap fund and have outperformed their passive peers.
EDIT: Oops, I clipped it but that is ISO and VSO.


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## divs4ever (22 July 2022)

aah  yes , the comparison index  quandary

 ( what should i compare  my LIC to )

i tend to disregard those  and look at div. returns (  and divs kept in reserve , for the 'div. smoothers ' )


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## InsvestoBoy (22 July 2022)

divs4ever said:


> aah  yes , the comparison index  quandary
> 
> ( what should i compare  my LIC to )
> 
> i tend to disregard those  and look at div. returns (  and divs kept in reserve , for the 'div. smoothers ' )




It's not a quandry.

One look at the MIR chart compared to Russell 2000, ASX Small Ordinaries, etc shows that the principal component factor is https://www.investopedia.com/terms/s/small_minus_big.asp


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## Belli (22 July 2022)

And in my view MIR should not be held up as an example of holding dividends in reserve for dividend smoothing give the source of its dividend payments of late.


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## Dona Ferentes (11 August 2022)

Mr Terry Campbell, the Chairman of the Company has advised that he will not seek re-election at the 2022 Annual General Meeting and will retire at the conclusion of the meeting to be held on 13 October 2022.  

 Mr Campbell was instrumental in the establishment of Mirrabooka in December 1998. He has been the  non-executive Chairman since that date. The Board wishes to record its deepest thanks to Mr Campbell for his invaluable contribution to the Board deliberations over the last 24 years. His very broad industry experience at the highest levels of the Australian corporate world has been of outstanding value to the Board, executives and shareholders of Mirrabooka Investments Limited. 

_- lovely guy._


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## kenny (12 August 2022)

Dona Ferentes said:


> Mr Terry Campbell, the Chairman of the Company has advised that he will not seek re-election at the 2022 Annual General Meeting and will retire at the conclusion of the meeting to be held on 13 October 2022.
> 
> Mr Campbell was instrumental in the establishment of Mirrabooka in December 1998. He has been the  non-executive Chairman since that date. The Board wishes to record its deepest thanks to Mr Campbell for his invaluable contribution to the Board deliberations over the last 24 years. His very broad industry experience at the highest levels of the Australian corporate world has been of outstanding value to the Board, executives and shareholders of Mirrabooka Investments Limited.
> 
> _- lovely guy._



who's being groomed to take over that position? Any clues? I reckon it will have an impact on price.

I hear Hamish needs a job.

<ducks> Too soon?


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## Dona Ferentes (12 August 2022)

kenny said:


> who's being groomed to take over that position? Any clues? I reckon it will have an impact on price.
> I hear Hamish needs a job



Not sure if you know much about these things, but
a) the whole idea would not to have an impact on the price
b) your fanciful candidate wouldn't have the proverbial "_snowflake's chance in Hades_".

If you wish to know more about  MIR, visit https://www.mirra.com.au/. Further info is via their ASX announcements, and the Annual Shareholder meetings are worth attending. It is easy to approach the board and management , and ask questions


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## divs4ever (13 August 2022)

Dona Ferentes said:


> Not sure if you know much about these things, but
> a) the whole idea would not to have an impact on the price
> b) your fanciful candidate wouldn't have the proverbial "_snowflake's chance in Hades_".
> 
> If you wish to know more about  MIR, visit https://www.mirra.com.au/. Further info is via their ASX announcements, and the Annual Shareholder meetings are worth attending. It is easy to approach the board and management , and ask questions



would a new chairman  , change the investing strategy ( mandate ) and therefore unsettle the current investors ??

 now if the new chairman was appointed as an EXECUTIVE chairman , yes i could see the current investors  looking with intense scrutiny  ( a sudden mandate change would certainly rattle them )

 however i suspect MIR will keep with the strategy they have  , with maybe a mild tweak or two if needed


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## Belli (13 August 2022)

kenny said:


> who's being groomed to take over that position? Any clues? I reckon it will have an impact on price.
> 
> I hear Hamish needs a job.
> 
> <ducks> Too soon?




No clues needed as the ASX announcement advised of Terry Campbell's successor as @Dona Ferentes hinted at.

As for a poster's wild thoughts on a change of strategy for MIR a basic understanding of Terry Campbell's background and that of his successor.............. well, I guess a bit of research would have helped.


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## divs4ever (13 August 2022)

well a non-executive  Chairman  , normally gives guidance and advice ( not makes decisions )  so one would expect  only minor ( or no ) changes  if replaced by a non-executive chairman  and any changes would be needed to be voted on by the board as an entity 

 HOWEVER the new chairman  MIGHT attract  a new tranche of investors  , and those new investors might agitate for a change  ( i assume the current holders are quite happy with the LIC )

 for example  an ' above-named ' unemployed manager  might attract new  money  but those new investors might favour more activity in the portfolio 

 since the retiring chairman  had/has a big influence on 'the brand '  , his impending retirement  should be seen  as something to observe and ponder 

 now i am uneasy  about major changes in strategy/mandate  ( unless necessary ) but have been in other LICs  that have disastrously messed with the existing strategy  to the joy of activist investors ( which i hope doesn't happen here )


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## Belli (13 August 2022)

Still no research, eh?  You just don't get it.

Maybe this will give some a clue






						New boss at Goldman Sachs JBWere | goldman, gsjbw, goldman sachs jbwere, terry campbell, t3 | FinanceAsia
					

After 10 years as CEO of the Australian investment bank, Terry Campbell hands over the reins to Craig Drummond.




					www.financeasia.com
				




Oh, and the other name in the article may be familiar to some.


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## Belli (27 August 2022)

MIR released its Annual Report yesterday.  The list of its shareholdings is interesting.  Although it didn't make the list of "New companies added to the portfolio" I note at some point in the FY it took a position in AMP with 5.7m shares (list of holdings starts at page 83.)



			https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02558931


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## Dona Ferentes (28 August 2022)

Belli said:


> MIR released its Annual Report yesterday.  The list of its shareholdings is interesting.



Looking at what is new to the portfolio, it seems to be a tilt back towards *medium*- rather than *small*-caps.

For a LIC with just under $500M in AUM; *new *additions to the portfolio include (valuations at 30 June)
CPU ... $9.7M
JBH .... $8.9M
WOR ... $8.0M
AMP ... $5.7M
STO ... $5.5M
IPG .... $4.4M
BMT ... $4.1M
C79 .... $3.3M
GTK ... $2.6M
EGL ... $1.7M
BAP ... $1.2M

There are quite a few where the holding has increased significantly
NAN ... ~$5.0M
PPC ... ~$5.0M
CWN .. ~$3.0M
SPL ... ~$2.8M

Of course, these  have to be paid for; from proceeds of the SPP plus numerous trimmings of existing positions and full sale/ takeover of others


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## Belli (28 August 2022)

I also noticed from the NTA released around the time MIR declared a dividend, it has Macquarie Telecom at its second major holding.  I understand it has been in the portfolio for some time and there has been some discussion here on that particular company.

I see from the accounts, MIR has $27.396m at end of 2022 which compares with $27.826m at 2021 so not much of a change there and its trading portfio has increased by close to $2m.


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## Dona Ferentes (13 October 2022)

Mirrabooka has been around for 20+ years. At the AGM today, there was a bit of navel gazing about their aims and outcomes. And well worth a look for those interested.

Essentially a small cap LIC, and buy/hold for the long-term at that, there was a bit of a review of how they've come along. Not holding any Top-50 stocks now, but they did take positions in quite a few, over the years, that have grown . Folks may recognise some.


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