Australian (ASX) Stock Market Forum

ARG - Argo Investments

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Belli said:
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.
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Well, great you sent the dividend statements at 6:08 pm but bad you still haven't placed the funds in my account unlike your competitors which can achieve it at around 11:00am on the day. Not beyond the whit of programming since you will not permit any amendments to the holding between the ex- date and date of payment.

I will now climb down.

High Horse.jpg
 
Galloping Jehoshaphat

This May, Argo will be holding in-person shareholder information meetings in various locations. At these meetings we will provide an update and overview of Argo, the investment portfolio and our view of the share market. We will also present on Argo Infrastructure (ASX code: ALI). [The] New York-based portfolio manager will attend to provide insights into the global listed infrastructure sector.

Shareholders will also have the opportunity to meet with our team face-to-face and ask us questions.

As this is the first time Argo has conducted in-person shareholder information meetings since the onset of the pandemic, we are initially only presenting in the cities listed below.
  • Melbourne 10am Monday 22 May
  • Adelaide 10am Tuesday 23 May
  • Brisbane 10am Wednesday 24 May
  • Sydney 2pm Thursday 25 May
We intend to visit other locations in due course.
 
I've not taken any notice of the NTA when I buy them. The Feb NTA published on 8 March was $8.96 pre-tax and $7.85 after-tax. The closing price on that day was $9.08. Price at close last Thursday was $8.96.

I am income focused and, using 2019FY as the base, the following year-on-year variations (cash only) have occurred for me in that regard:

2020FY: 8.4%
2021FY: 13%
2022FY: 9.7%
2023FY: 14%

Would have been down even further for 2021FY if I hadn't been buying but it really was not a concern as I always have a cash buffer to tide me over those events which will occur.
 
  • Final fully franked dividend payable 15 September 2023 is 18.0 cents
  • The final dividend does not include a LIC capital gain component.
  • Dividend Reinvestment Plan will operate
Investment portfolio
Short-term market volatility during the year created buying opportunities, primarily to add to existing portfolio positions. However, the total value of transactions (both sales and acquisitions) was modest relative to prior periods. The larger movements in the portfolio during the period were:

Purchases
Allkem*
BHP Group
CSL
GUD Holdings
IDP Education
Macquarie Group
Santos
Stanmore Resources
Viva Energy
* New portfolio position

Sales
Australian United Investment Co.
Diversified United Investments
Insurance Australia Group
Pact Group**
Tabcorp Holdings**
Tassal Group (takeover)**
** Fully exited position

Total number of stocks in the investment portfolio decreased from 93 to 89.
 
It's been a while since I've bothered with the share market. However, I had funds to place, saw the price of ARG and picked up a couple of thousand to add to the holding.
 
Belli said:
Only saw this announcement today. ARG will provide its half-yearly report on 5 February (next Monday). Dividend will be payable on 8 March unless otherwise advised.
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bang on time.

Steady as she goes.
Dividend at 16.5c ff.

Investment performance
Argo’s investment performance, as measured by net tangible assets return after management costs and adjusted for company tax paid, was +5.6% as compared to the S&P/ASX 200 Accumulation Index return of +7.6% over the six months to 31 December 2023 (without any allowance for costs).

Holdings in Clarity Pharmaceuticals (up more than +170%) and Stanmore Resources (up nearly +60%) contributed positively to performance. However, gains were offset by
negative returns from other holdings, including pathology and imaging provider Healius. In general, Australian healthcare providers have lagged due to higher costs and lower utilisation levels. Not owning Fortescue materially weighed on relative performance, as did our underweight exposure to the major banks.

Investment portfolio
The larger movements in the portfolio during the period were:

Purchases
Resmed*
CSL
Santos
Stanmore Resources
Viva Energy Group
Woodside Energy Group
* New portfolio position

Sales
Estia Health (takeover)**
Invocare (takeover)**
Liontown Resources**
Insurance Australia Group**
** Fully exited position

The total number of stocks in the investment portfolio decreased slightly, from 89 to 86
 
What an empty vessel to now comment on a post made four months ago with zero relevance to the current half-yearly report. A person who feels a need to say something for the sake of saying something.
 
Belli said:
What an empty vessel to now comment on a post made four months ago with zero relevance to the current half-yearly report. A person who feels a need to say something for the sake of saying something.
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(I do not hold) (back)
 
Belli said:
I was reading the half-yearly report. When did they introduce a Dividend Share Substitution Plan? Is it a misprint?
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The AFI stable have had this for ages. As it's not my preference, I've ignored it. so i can't answer that, Belli.

if anyone is interested ...from another LIC (more work for accountants) :

The Dividend Substitution Share Plan (DSSP) is another way to accumulate shares over time. The main difference from the DRP is that no income tax is payable at the time of receipt of the dividend.​

When Australian resident taxpayers receive DSSP shares, no income tax is payable until the shares are sold.

The DSSP may be suitable for Australian taxpaying shareholders that:
  • Want to defer tax-payable until selling their () shares
  • Are on a high marginal income tax rate
  • Shareholders that pay tax at a lower rate (e.g. SMSF) may prefer the DRP.
  • .. Australian resident participants in the DSSP do not receive a dividend but in lieu of that, are issued shares. As they do not receive a dividend, they will not get franking credits or LIC capital gains tax deductions and will usually not be subject to income tax. The receipt of the substitute shares will change the tax cost base of the () shares that participate in the DSSP and may therefore increase any capital gains tax paid on any subsequent disposal.

    Shareholders should in all cases seek their own advice as to whether or not participation in the DSSP is suitable for them
 
Dona Ferentes said:
The AFI stable have had this for ages. As it's not my preference, I've ignored it. so i can't answer that, Belli.
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A reasonable position to adopt. Likewise a DSSP isn't my preference either but I was surprised ARG introduced it as I don't recall receiving any advice it was available.
 
Belli said:
A reasonable position to adopt. Likewise a DSSP isn't my preference either but I was surprised ARG introduced it as I don't recall receiving any advice it was available.
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Really depends on individual position: big tax bill on a specific year, etc..but interesting to learn about this
 
Did a small top up on 4 March at a discount of 6% to Feb NTA. Funds went in on Friday to replenish the purchase and distribution to cover various future expenses as well as play money.

Most of the time I feel things are only as difficult as you want to make them.
 
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