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About The Company
AMCIL was established in 1996 as a thematic investor focussed on the media and telecommunications sectors.
Following the substantial decline in these sectors of the market during 2001 and the limited availability of appropriate opportunities thereafter shareholders agreed in late 2003 to a new proposal to change the investment criteria to focus on a concentrated portfolio approach but across the broader market.
AMCIL’s portfolio covers both large and small companies. The number of companies in the portfolio will usually comprise 30 to 40 stocks depending on market conditions and thematic investment opportunities. The selection of stocks in the portfolio is based on attractive valuations as well as the outlook for growth and the competitive structure of the industry.
Corporate Objective
The Company's corporate objective is to provide shareholders with attractive returns through strong capital growth in the portfolio over the medium to long term with the generation of dividend income as a subordinate, but nevertheless important, objective.
Depending on the profit from year to year the dividends paid by the Company will maximise the distribution of franking credits. It would not be our normal practice to distribute realised capital gains unless franking credits have been generated. As a result, AMCIL’s dividends may vary over time.
Approach to Investing
The investment philosophy is built on taking a medium to longer term view of value, which means we aim to buy and hold individual stocks over the long term based on selection criteria which, in summary, include:
• Formulation and execution of business strategy of the company and its
underlying business value;
• Key financial indicators, including prospective price earnings relative to projected growth,
sustainability of earnings and dividend yield (including franking) and balance sheet position
including gearing, interest cover and cash flow; and
• Corporate governance practices, including sound and well constructed boards.
• AMCIL also has access to lines of credit, which allows the Company on a limited basis to gear its
balance sheet when appropriate investment returns are available to enhance shareholder
returns. In addition, the Company also uses options written against its trading portfolio
to generate additional income.
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