Argo Investments Limited: Did it beat the market in 2018?

Like many Australian fund managers, listed investment company Argo Investments Limited failed to outperform the market in the second half of 2018.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Listed investment company Argo Investments Limited (ASX: ARG) this morning announced its half-yearly results for the year ended 31 December 2018 and a 16 cents per share interim dividend payable on 8 March. The Argo share price is up 0.9% to $7.91.

Argo is a major Australian investment company with $5.3 billion in assets and a portfolio of around 100 ASX companies. Like many of its peers, the fund underperformed the ASX 200 over the period with its investment performance  of -8.3% after all costs and tax compared to the benchmark's -6.8%. More positively, Argo's share price returned -3.0%, outperforming the market by 3.8%.

The half-year profit results were strong relative to its previous corresponding period, driven largely by a one-off non-cash income item from the demerger of Coles Group Ltd (ASX: COL) from Wesfarmers Ltd (ASX: WES). Profit was up 42.2% and the 16¢ interim dividend was 0.5¢ higher.

The results weren't quite as impressive on a more normalised basis, however. Profit was up only 9.6%  if the effect of the Coles demerger is excluded.

Other drivers of performance over the period include higher dividends from BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), CSL Limited (ASX: CSL), Macquarie Group Ltd (ASX: MQG) and Ramsay Healthcare (ASX: RHC).

Argo's outlook for 2019

Argo says that while the recent pull back in valuations has made for more attractive opportunities, the company remains cautious due to not only the widely discussed global risks, but also local uncertainties surrounding the Royal Commission, housing downturn and the federal election.

Motley Fool contributor Cale Kalinowski has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended 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.

More on Share Market News

A young well-dressed couple at a luxury resort celebrate successful life choices.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors kept up the selling this session.

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Broker Notes

Morgans says these ASX 200 shares can rise 20%+

The broker says these shares could offer major upside.

Read more »

Three women athletes lie flat on a running track as though they have had a long hard race where they have fought hard but lost the event.
Broker Notes

Brokers rate 2 ASX All Ords rippers of 2025: Is their phenomenal run over?

Both of these ASX shares more than tripled in value last year.

Read more »

a woman puts her hand to her chin and looks to the side deep in thought as though pondering something significant.
Broker Notes

2 ASX 200 gold shares to buy and 1 to sell: experts

After exceptional share price growth for 2 years, experts say investors need to choose their gold stocks carefully.

Read more »

Bored man sitting at his desk with his laptop.
Share Fallers

Why 4DMedical, ARB, Inghams, and Qoria shares are tumbling today

These shares are under pressure on Tuesday. What's going on?

Read more »

Two smiling work colleagues discuss an investment at their office.
Share Market News

Why Bellevue Gold, DroneShield, Hub24, and Telix shares are storming higher today

These shares are rising on Tuesday despite the market weakness.

Read more »

Keyboard button with the word sell on it, symbolising the time being right to sell ASX stocks.
Resources Shares

ASX 200 materials was the best sector of 2025 but it's time to sell these 3 shares: broker

Morgan Stanley has just updated its ratings and 12-month price targets on 3 ASX 200 mining shares.

Read more »

A red heart-shaped balloon float up above the plain white ones, indicating the best shares
Dividend Investing

Why this could be the best ASX dividend stock to buy today

There are few ideas that match this option for dividend investors.

Read more »