How AMCIL Invests
AMCIL seeks to create a portfolio of quality companies which are likely to sustainably grow their earnings and dividends over a medium to long-term timeframe. Our assessment of quality includes criteria such as the board and management, financial position, pricing power as well as some key financial metrics such as the level of gearing in the balance sheet, margins and cash flow. The structure of the industry and a company’s competitive position in its industry are also important indicators of quality. Linked to this assessment of quality is the ability of companies to grow earnings over time, which ultimately should produce good dividend and capital growth.
Recognising value is also an important aspect of AMCIL’s investment approach. Our assessment of value tries to reflect the opportunity a business has to prosper and thrive over the medium to long term.
Given the focused nature of the portfolio, AMCIL is more active in managing the holdings. Our preference is that positions will be held for the long term. However, in managing the risk in the portfolio, the Company is prepared to scale back or exit holdings completely if the investment case alters markedly, the position becomes too large in the portfolio or share prices become excessively high. In managing the portfolio in this way, we believe AMCIL can offer investors returns in excess of the S&P/ASX 200 over the long term.
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.
If you’re an AMCIL shareholder, it’s optional to participate in the DRP. You can choose whether to reinvest all or part of your dividends in the plan. Participants enjoy the benefits of compound returns over time with no brokerage costs when acquiring additional shares. It’s entirely flexible, allowing you to join or withdraw at any time.
If you are not presently in the Dividend Reinvestment Plan (DRP) you will automatically receive $A cash dividends. Please note that if you want to receive a cash dividend then you will need to provide the Share Registry with details of a nominated bank account.
Full details of the DRP are set out below.
When Australian resident taxpayers receive DSSP shares, no income tax is payable until the shares are sold.
The DSSP may be suitable for Australian taxpaying shareholders that:
Australian resident participants in the DSSP do not receive a dividend but in lieu of that, are issued shares. As they do not receive a dividend, they will not get franking credits or LIC capital gains tax deductions and will usually not be subject to income tax. The receipt of the substitute shares will change the tax cost base of the AMCIL shares that participate in the DSSP and may therefore increase any capital gains tax paid on any subsequent disposal.
Shareholders should in all cases seek their own advice as to whether or not participation in the DSSP is suitable for them.
For more information on the DSSP, please read the DSSP Rules. We have also included a link to the Australian Tax Office Class Ruling regarding the AMCIL DSSP (refereed to in the document as a bonus share plan).
The Company recently announced its intention to make an offer to shareholders for additional funds under a Share Purchase Plan (SPP). Details of the SPP are details in the Terms and Conditions and you should read them before participating in the SPP. The additional equity raised will be used for general investment purposes.
The other important feature to note of the offer, is that the share price (as at 30 September
2020) was trading at a discount of 6.7% to the net asset backing at 30 September 2020. As a result, there is no discount associated with this SPP.
Key features of the Plan are:
Sign into Computershare – a secure shareholding administration platform – with your Shareholder Reference Number (SRN) or Holder Identification Number (HIN).
Alternatively, complete and return the forms below.
Interim Financial Results and Dividend Payments 2021
* these dates may be subject to change
|TBA||Interim Results Announcement|
|TBA||Interim Dividend Ex-Date|
|TBA||Last election date for Dividend Reinvestment Plan / Dividend Substitution Share Plan|