Mirrabooka Investments Ltd (ASX: MIR) this morning released its half-yearly review for the last six months of 2018 alongside the declaration of a 10¢ per share fully franked special dividend. Profit was down 16.2% on the previous corresponding period.
The profit decline was attributed to a far weaker performance in the trading portfolio. This likely came as no surprise to investors given how markets played out for small and mid-cap stocks in the latter part of last year. Mirrabooka Investments is a listed investment company (LIC) aimed at Australian and New Zealand small to mid-cap equities.
The company reminded investors of its 10-year return of 13.9% per annum including franking, ahead of the benchmark's 9.6% return, over the same period.
Mirrabooka Investments employs a buy and hold strategy with a medium to long term investment approach. This approach is facilitated by the closed-ended nature of an LIC, which means that Mirrabooka doesn't have to worry about investor withdrawals affecting funds under management.
As for the special dividend, the company cited the uncertainty regarding the future refundability of franking credits as a motivator. This refers to the Australian Labor Party's intentions to remove the ability to receive cash refunds from the ATO for excess franking credits, should they be elected.
The interim dividend of 3.5¢ per share fully franked will be maintained.
The Mirrabooka share price is up 5¢, or 1.96% to trade at $2.60 this morning, supported by the special dividend announcement.
