AFI - Australian Foundation Investment Company

[Dona Ferentes]

cribbed from elsewhere

 

[sptrawler]

cribbed from elsewhere

View attachment 158347

It's like a lot of things in life, it would be good if it was bigger.

 

[Belli]

It's like a lot of things in life, it would be good if it was bigger.

Take heart @sptrawler. AFI has around 150k holders some of whom maybe new holders or adding to their holdings. Bit of a stretch for commentators to imply all those holders are dumb and should invest elsewhere. It is an individual decision and each investor's circumstances/attitude are different. That last sentence applies to investing in general I think.

PS: The Sun rose this morning so that was a good silent prediction on my part. That is the extent of my prediction capabilities in regard to the future.

 

[Gretsch]

Why would someone put their money in AFI when the banks are paying over 5% right now?

 

[Dona Ferentes]

Why would someone put their money in AFI when the banks are paying over 5% right now?

Capital Gain.

 

[Gretsch]

Capital Gain.

i.e., trading.

 

[Dona Ferentes]

Suggest you familiarise yourself with Peter Thornhill.

Investing, not trading

 

[Gretsch]

Suggest you familiarise yourself with Peter Thornhill.

Investing, not trading

Buy low, sell high.
I stand corrected. I struggle to find the correct words these days.

 

[Dona Ferentes]

A fully-franked final dividend of 14 cents per share, the same as last year’s final dividend, will be paid on 1 September 2023 to shareholders on theregister on 14 August 2023. The shares are expected to trade ex-dividend on 11 August 2023. There is no conduit foreign income component of the dividend..
> The Board has elected to source 7 cents per share of the final dividend from capital gains, on which the Group has paid or will pay tax. The amount of this pre-tax attributable gain, equals 10 cents per share. This enables some shareholders to claim a tax deduction in their tax return..

Portfolio Adjustments
While we endeavour to have low turnover to reduce the impact of tax paid on returns, recycling capital from companies trading at extreme valuations to capture the appropriate buying opportunity remains fundamental to our approach. In this context, the portfolio benefitted from trimming several holdings at appropriate times through the year. This included holdings in NEXTDC, Brambles, IRESS, Carsales.com (following participation in recent equity placements which took the holding to above our desired portfolio position),Commonwealth Bank of Australia, Westpac Banking Corporation, ANZ Group
Holdings, Mainfreight,Transurban, Ramsay Healthcare and Amcor. We exited the position in Temple & Webster which allowed us to redeploy this capital in other opportunities.

We also exited our holdings in Orica, InvoCare, Reliance Worldwide and Ryman Healthcare. We are observing structural industry challenges for many of these companies or an environment where competitive intensity has materially increased. We consider the growth prospects for the majority of these companies to be increasingly challenged as a result.

As a counterbalance to this activity most purchases during the year were focused on increasing weightings to existing holdings. This included BHP, National Australia Bank, Domino’s Pizza, IDP Education, Santos, CSL, Mirvac, Computershare and Goodman Group.

One new stock was added through the year. We initiated a position in Breville Group, which is a kitchen appliance company operating premium brands in the cooking, beverage and food preparation categories. The business was founded in 1932, maintains a heavy focus on product innovation and has very strong global distribution which should provide for further profit growth.

 

[Dona Ferentes]

International Portfolio

We have continued to trial the management of an international portfolio over the period. This portfolio consists of what we have assessed to be high-quality companies with a strong competitive advantage, good growth potential and across a broad range of industries. This portfolio was first initiated in May 2021 as a potential precursor to establishing a separate low-cost international Listed Investment Company in the future.

At 30 June 2023 approximately $115.4 million was invested in 41 companies in this portfolio (which represents approximately 1.3% of the total AFIC portfolio).

The performance of the portfolio since its inception is ahead of its benchmark index which is very pleasing given the volatile market conditions that have been in evidence over this period.

 

[Dona Ferentes]

every morning, a large volume buy order (or 2) appears for AFI , usually at or below the order of book. Sometimes it is part filled. It disappears overnight to reemerge the following day. This started at 7.44 in Dec and has pushed higher to 7.50. I wonder how big the buy mandate is?

Meanwhile, Dec NTA came in at 7.62 ... and AFI Half Yearly reports to market on Wed 24 Jan.

 

[divs4ever]

every morning, a large volume buy order (or 2) appears for AFI , usually at or below the order of book. Sometimes it is part filled. It disappears overnight to reemerge the following day. This started at 7.44 in Dec and has pushed higher to 7.50. I wonder how big the buy mandate is?

Meanwhile, Dec NTA came in at 7.62 ... and AFI Half Yearly reports to market on Wed 24 Jan.

well the top ten stocks held buy Bell Clients AFI regularly fluctuates between 9 or 10 on the list

given the stocks that do not regularly make that list ( WBC , WES , COL , WOW , TLS )

one might suspect a Bell client calmly accumulating

interesting that AFI is the only LIC to regularly appear on that list also ( although ARG can appear from time to time also )

a HNW individual/trust or a fund perhaps ??

 

[Dona Ferentes]

two days before the Half Yearly is announced, some holder decides to dump a few in the first few minutes of trading .

.
NTA at end Dec was $7.62

 

[InsvestoBoy]

two days before the Half Yearly is announced, some holder decides to dump a few in the first few minutes of trading .

Wide ranges in ARG and AUI today as well.

Probably someone moving out of LICs and into ETFs.

 

[Dona Ferentes]

Wide ranges in ARG and AUI today as well.

Probably someone moving out of LICs and into ETFs.

whatever.

on 12 Jan, I posted

every morning, a large volume buy order (or 2) appears for AFI , usually at or below the order of book. Sometimes it is part filled. It disappears overnight to reemerge the following day. This started at 7.44 in Dec and has pushed higher to 7.50. I wonder how big the buy mandate is.

 

[divs4ever]

whatever.

on 12 Jan, I posted

actually a better question might who ( has the buying mandate )

several rivals are busy buying their own shares

at least two fund manager predators have taken-over/bought out rivals

and according Commsec the directors ( combined ) hold less than 1 million shares

 

[Dona Ferentes]

> The interim dividend is 11.5 cents per share, fully franked, an increase from 11 cents in the previous corresponding period. The dividend will be paid on 26 February 2024 to ordinary shareholders on the register on 5 February 2024, and the shares are expected to commence trading on an ex-dividend basis on 2 February 2024. There is no conduit foreign income component of the dividend. No LIC gains are attached to the interim dividend.

Acquisitions Cost ($’000)
Mineral Resources 52,113
Region Group 32,994
Telstra Corporation 30,326
National Australia Bank 30,289
CSL 27,440

Disposals ..Proceeds ($’000)
James Hardie Industries 58,105
IRESS* 33,759
Ansell* 32,260
Woolworths Group 26,820
AUB Group 18,514
*Complete disposal from the portfolio.

New Companies Added to the Portfolio
Mineral Resources
Region Group.

 

[Belli]

Not a bad war chest available.

 

[divs4ever]

> The interim dividend is 11.5 cents per share, fully franked, an increase from 11 cents in the previous corresponding period. The dividend will be paid on 26 February 2024 to ordinary shareholders on the register on 5 February 2024, and the shares are expected to commence trading on an ex-dividend basis on 2 February 2024. There is no conduit foreign income component of the dividend. No LIC gains are attached to the interim dividend.

Acquisitions Cost ($’000)
Mineral Resources 52,113
Region Group 32,994
Telstra Corporation 30,326
National Australia Bank 30,289
CSL 27,440

Disposals ..Proceeds ($’000)
James Hardie Industries 58,105
IRESS* 33,759
Ansell* 32,260
Woolworths Group 26,820
AUB Group 18,514
*Complete disposal from the portfolio.

New Companies Added to the Portfolio
Mineral Resources
Region Group.

interesting that they exited ANN , better value elsewhere , perhaps ?

 

[Ferret]

interesting that they exited ANN , better value elsewhere , perhaps ?

It's in the announcement :
"In the case of Ansell, significant new supply has entered the industry challenging the sustainability of price as a driver of revenue growth."