Listed investment company AMCIL Limited (ASX: AMH) this morning released its half-yearly review for the last six months of 2018 alongside the declaration of a 2¢ per share fully franked interim dividend and a fully franked special dividend of 1.5¢ per share. AMCIL shares are trading 2% higher at $0.89 today.
The company cited the uncertainty regarding the future refundability of franking credits as a motivator for paying the special dividend.
AMCIL invests in 30 to 40 Australian equities companies of mixed size, employing a buy and hold strategy with a medium to longer term view.
AMCIL’s portfolio underperformed the market over the period, posting a -10.2% return compared to the ASX200’s -6.8%. This was nothing too far out of the ordinary after a dismal 2018 for Australian fund managers.
However, it should be noted that AMCIL’s performance looks far better over a longer time horizon. Over a ten-year period, AMCIL has posted a return of 11.8% compared to a benchmark of 10.6%. This return figure is net of costs and tax paid.
Profit for the half-year was $3.66 million, up 42.7% on the previous corresponding period. This was driven by a gain on the options portfolio of $0.9 million and exposure to the BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) buybacks.
Over the period, AMCIL picked up new positions in the following companies:
- Sydney Airport Holding Pty Ltd (ASX: SYD)
- Ramsay Health Care Limited (ASX: RHC)
- Starpharma Holdings Limited (ASX: SPL)
Meanwhile, AMCIL disposed of positions in:
- Nufarm Limited (ASX: NUF)
- Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
- DuluxGroup Limited (ASX: DLX)
- ALS Ltd (ASX: ALQ)
- InvoCare Limited (ASX: IVC)
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Motley Fool contributor Cale Kalinowski has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. The Motley Fool Australia has recommended InvoCare Limited and Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.