ARG - Argo Investments
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i have been preferring ex-50 ( focused LICs ) over the large cap. focused ( LICs ) CURRENTLY , but that may change in the future ( especially if more large caps become fair value )
Dona Ferentes
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Ditto.
Dona Ferentes
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Applications totalling $191.8 million were accepted from 14,544 eligible shareholders (out of 95,500).
No scale back was applied to applications and as a result, 20,628,655 new Argo shares will be issued on Thursday 31 March 2022 at the subscription price of $9.30 per share
No scale back was applied to applications and as a result, 20,628,655 new Argo shares will be issued on Thursday 31 March 2022 at the subscription price of $9.30 per share
Dona Ferentes
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Thanks, Belli. the dividend suits me just fine. The LIC capital Gains : from a number of substantial capital gains in the portfolio being crystallised, led by the takeover of Sydney Airport, one of our larger holdings.
Argo’s share price returned +1.6%, outperforming Australian shares by +8.1% and closed at a slight premium to the per share asset backing.
Also, I am glad to see they are clearing out the double dipping (AUI, SOL) to some extent.
The larger movements in Argo’s portfolio during the period were:
Purchases
Aristocrat Leisure
Aurizon Holdings
BHP
EML Payments
Lendlease Group
Megaport*
RAM Essential Services Property Fund*
Santos
Superloop
Sales
AGL Energy**
Australian United Investment Company
Boral**
Crown Resorts**
Oil Search (takeover)**
Spark Infrastructure (takeover)**
Sydney Airport (takeover)**
Washington H. Soul Pattinson
* new position
** fully exited
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Had a very quick look at teh accounts. Dividends and distributions increased by $129.4M and retained earnings by $153.1M. Seems ARG is holding back on dividends based on earnings and deciding capital gains will apply to the majority of this dividend. Capital management and provisioning.
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interesting , i bought into REP as well ( just significantly less than ARG ) but am surprised they are adding to BHP in the past year ( below $25 for me even when carrying the now divested WDS )
i was glad to lose SYD , but sad to see SKI go ( fairly neutral over CWN )
I gather from postings in another thread, the management of ARG would seem to have a greater understanding as to why the LIC added to its holdings in BHP despite the surprise expressed by some. I believe their time-frame is longer than the next tick on the share price movement.
ARG has released its Annual Report.
Contrary to popular belief during 2022FY it did not rush to fill its boots with shares in the Big 4 banks. It may have since 1 July but that is an unkown.
ANZ: 8.3m shares: no change
CBA: 2.8m shares: no change
NAB: 5.9m shares: no change
WBC: 8.4m shares: no change
MQG: 2.6m shares: added 100k shares
The list of shares starts at page 72 of the document (Item 30.)
Contrary to popular belief during 2022FY it did not rush to fill its boots with shares in the Big 4 banks. It may have since 1 July but that is an unkown.
ANZ: 8.3m shares: no change
CBA: 2.8m shares: no change
NAB: 5.9m shares: no change
WBC: 8.4m shares: no change
MQG: 2.6m shares: added 100k shares
The list of shares starts at page 72 of the document (Item 30.)
May as well post my other gripe with the share registry. It only has a limited history of transactions. In my case it is from 2015 yet I have many transactions in ARG before then. If I require those transactions I need to contact Boardroom (and pay a fee I assume.)
It is a reason I never rely on share registries or brokers to maintain records.
It is a reason I never rely on share registries or brokers to maintain records.
Same here.
I also annoy the hell out of everyone by getting all dividend notices through the mailbox.
Nobody gets my email address, either.....Stuff 'em all !
I don't go as far as that. In the past I've had mail go missing so I don't rely on that either.
However, I do login to the relevant share registries to download the information I require. After a while the pattern of when advices become available do become apparent.
Dona Ferentes
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next sensible LIC to report is the $7 billion Argo Investments:
Results announcement – half year ended 31 December 2022 : Monday 06 February 2023.
In keeping with the market doing well, ARG has risen strongly this year, and esp since AFI posted their results that included a lift in dividend. But it's still not priced too far from NTA .
Results announcement – half year ended 31 December 2022 : Monday 06 February 2023.
In keeping with the market doing well, ARG has risen strongly this year, and esp since AFI posted their results that included a lift in dividend. But it's still not priced too far from NTA .
I wasn't aware the price had increased to that extent not that it really matters. Threw money at this LIC on 19 December @ $8.795. Bizarre pricing these at $0.005 increments but that's the way it is.
I'll find out what it has or hasn't done when I get back. No rush as the result will not change one whit in my absence.
I'll find out what it has or hasn't done when I get back. No rush as the result will not change one whit in my absence.
Dona Ferentes
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Argo reported a 6.2 per cent increase in interim profit to $137 million for the half year to December 31. Earnings per share rose 2.2 per cent to 18.2¢.
Profit increased primarily due to higher investment income received from companies in Argo’s portfolio, with dividends continuing to recover from their pandemic lows. Although income from ordinary dividends increased, income from special dividends fell sharply with companies generally not repeating these one-off, post-COVID capital returns. Income generated from Argo’s trading activities was also higher during the half.
Investment performance
Argo’s investment approach favours companies that can grow their income sustainably over time, rather than more cyclical businesses, such as mining stocks which can see their earnings fluctuate significantly with commodity prices and often do not pay dividends.
During a particularly volatile and challenging period, Argo’s investment performance, as measured by net tangible assets (NTA) return after management costs, was +5.6% as compared to the S&P/ASX 200 Accumulation Index return of +9.8% over the six months to 31 December 2022. Argo’s performance relative to the broader share market was impacted by our underweight exposure to the resources sector, particularly coal and lithium companies which have seen their share prices soar, in some cases by more than 100%.
.
ARG increased dividend from 16c to 16.5c ff
The larger movements in Argo’s portfolio during the period were:
Purchases
Santos
Stanmore Resources
Macquarie Group
IDP Education
Viva Energy Group
Superloop
GUD Holdings
Sales
Tassal Group (takeover)*
Tabcorp Holdings*
Pact Group Holdings*
Australian United Investment Co.
Endeavour Group
Hub24*
Carbon Revolution*
* Fully exited position
Profit increased primarily due to higher investment income received from companies in Argo’s portfolio, with dividends continuing to recover from their pandemic lows. Although income from ordinary dividends increased, income from special dividends fell sharply with companies generally not repeating these one-off, post-COVID capital returns. Income generated from Argo’s trading activities was also higher during the half.
Investment performance
Argo’s investment approach favours companies that can grow their income sustainably over time, rather than more cyclical businesses, such as mining stocks which can see their earnings fluctuate significantly with commodity prices and often do not pay dividends.
During a particularly volatile and challenging period, Argo’s investment performance, as measured by net tangible assets (NTA) return after management costs, was +5.6% as compared to the S&P/ASX 200 Accumulation Index return of +9.8% over the six months to 31 December 2022. Argo’s performance relative to the broader share market was impacted by our underweight exposure to the resources sector, particularly coal and lithium companies which have seen their share prices soar, in some cases by more than 100%.
.
ARG increased dividend from 16c to 16.5c ff
The larger movements in Argo’s portfolio during the period were:
Purchases
Santos
Stanmore Resources
Macquarie Group
IDP Education
Viva Energy Group
Superloop
GUD Holdings
Sales
Tassal Group (takeover)*
Tabcorp Holdings*
Pact Group Holdings*
Australian United Investment Co.
Endeavour Group
Hub24*
Carbon Revolution*
* Fully exited position
- There were no new stocks added to the investment portfolio during the period.
- Overall, the total number of holdings declined slightly to 88.
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Thank you for posting that @Dona Ferentes .
A quick back-of-the-envelope calculation indicates around a12% increase in dividend income for me personally compared with the previous FY. A combination of an increase of the dividend and holding more. I'll accept that result obviously.
Interesting going back to 2021FY when there was about a 10% dip in dividend income compared with previous FY but then that was around the time companies were getting their knickers in a twist over the then Labor policy on franking credits.
A quick back-of-the-envelope calculation indicates around a12% increase in dividend income for me personally compared with the previous FY. A combination of an increase of the dividend and holding more. I'll accept that result obviously.
Interesting going back to 2021FY when there was about a 10% dip in dividend income compared with previous FY but then that was around the time companies were getting their knickers in a twist over the then Labor policy on franking credits.
I see ARG has retained $24m in cash as a result of its DRP.
Share registry is its usual slow in sending out dividend statements and plonking funds in the accounts. While it is the right of a company to select the share registry, it doesn't mean I have to like the bloody thing.
Share registry is its usual slow in sending out dividend statements and plonking funds in the accounts. While it is the right of a company to select the share registry, it doesn't mean I have to like the bloody thing.