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.
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.