Half Yearly Report and Accounts as at 31 December 2020
AMCIL manages a focused portfolio of high-quality companies which is expected to deliver above market growth over the long term. Within this concentrated portfolio, large, mid and small companies can have an equally important impact on portfolio returns.
AMCIL’s focus of investing in high-quality businesses for the long term, has been suited to the volatile conditions arising from the Covid-19 pandemic. The confidence about the resilience of our current investments has meant we took advantage of any downturns through the period to add to selected holdings. New companies were also introduced into the portfolio through periods of market weakness.
The profile of the portfolio delivered strong outperformance across a number of positions during the six months to 31 December 2020. The portfolio return during this period, including franking, was 18.6% versus the S&P/ASX 200 Accumulation Index, including franking, which was up 13.7% over this period.
The 12 month portfolio return, including franking, was 15.8%. The return for the S&P/ASX 200 Accumulation Index over this period, including franking, was 2.4%.
AMCIL’s performance numbers are after expenses. The management expense ratio for AMCIL is 0.53% (annualised), with no performance fees.
Half Year Profit of $1.9 million, was down from $3.8 million in the previous corresponding period. Revenue from investments fell from $4.4 million to $2.6 million, as companies reduced or suspended dividend payments because of the uncertainty about trading conditions arising from the Covid-19 pandemic.
AMCIL's normal practice is to pay a dividend once a year with the full year result to distribute the franking credits that are available at financial year end from its investment activities during the year. In line with this practice no interim dividend was declared.