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Australian Listed Investment Company Report September 2023

Australia | Sep 12 2023

This story features AUSTRALIAN FOUNDATION INVESTMENT CO. LIMITED, and other companies. For more info SHARE ANALYSIS: AFI

Download related file: IIR-Monthly-LMI-Update_-11-September-2023

A Listed Investment Company (LIC) is a listed investment vehicle that offers investors access to a diversified portfolio of shares in other companies also listed on the stock market. Also known as Listed Investment Trusts or Listed Managed Investments.

For comprehensive comparative data tables for LICs please see attached.

LMI Market News

AFI Board Changes

Australian Foundation Investment Company Limited ((AFI)) announced that John Paterson and Catherine Walter will retire at the conclusion of the AGM to be held on 3 October 2023. Mr. Paterson who is the Chair of the Board, has been a Director since 2005, serving as an Alternate Director from 1987 to 2005. Mr. Paterson is Chair of the Investment Committee, a member of the Remuneration, Nomination and Audit Committees, and a non-executive director of Australian Investment Company Services Limited (AICS), a subsidiary of AFI.

Ms. Walter has been a Director since 2002 and is currently Chair of the Nomination Committee and a member of the Remuneration, Investment and Audit Committees.

The Board has elected Craig Drummond as the Chair to replace Mr. Paterson with effect from the conclusion of the AGM. Mr. Drummond has been a Director of AFI since July 2021 and sits on the Investment and Nomination Committees and is the non-executive Chair of AICS. Mr. Drummond is currently the Chair of Transurban Ltd, President of the Geelong Football Club Limited and a Governor of The Ian Potter Foundation.

ARG Board Changes

Argo Investments Limited ((ARG)) announced Roger Davis will be retiring from the Board effective 30 September 2023. Mr. Davis was appointed to the Board in 2012. Melissa Holzberger has been appointed to the Board as an Independent Non-Executive Director. Ms. Holzberger is an experienced director and commercial, energy and resources lawyer with over 20 years’ experience. Ms. Holzberger is currently a Non-Executive Director of Paladin Energy Ltd ((PDN)) and Andromeda Metals Ltd ((ADN)), and a former Non-Executive Director of Silex Systems Ltd ((SLX)). Ms. Holzberger has served on government, public and not-for-profit boards including the Australian Radiation Protection and Nuclear Safety Agency’s Radiation Health and Safety Advisory Council (current), Tyre Stewardship Australia, Australian Livestock Export Corporation and Karting Australia.

PIC Appoints Michael Clarke to Board

Perpetual Equity Investment Company Limited ((PIC)) announced the appointment of Michael Clarke to the Board as a Non-Executive Director, effective 1 September 2023. Mr, Clarke will stand for election at the AGM on 19 October 2023. Mr. Clarke will also be appointed to the Audit and Risk Committee and Nomination and Corporate Governance Committee.

Mr. Clarke has held various roles in the financial markets and wealth management industry. The appointment forms part of the Board renewal process and seeks to strengthen the skills, knowledge, experience and diversity of the Board.

PGG Unitholders Approve Delisting

Unitholders of Partners Group Global Income Fund ((PGG)) approved the delisting of the Fund at the Unitholder Meeting held on 2 August 2023. Units will be suspended from trading on the ASX after the market close on 17 November 2023 before being officially removed from the ASX on 22 November 2023.

Unitholders who do not wish to remain invested in the Fund can sell their units on market before the Fund is suspended from trading. Unitholders that seek to withdraw from the Fund after 17 November 2023, will be subject to the relevant Transition Fee that was approved at the Unitholder Meeting for the first 12-months post de-listing. Redemptions will also be subject to a limit of 5% per month in the unlisted fund structure.

HM1 Increases Dividend Frequency

Hearts & Minds Limited ((HM1)) announced in its full year results that the Company will be increasing the dividend frequency from annual to semi-annual. The Company previously paid a dividend in April after the rollover of the conference portfolio. The Company now intends to pay a dividend in April and October each year. The Company paid a dividend of 13.5 cents per share in April 2023 and declared a semi-annual dividend of 7 cents per share, fully franked, to be paid in October 2023.

FY23 LIC & LIT Review

The FY23 earnings season wrapped up in August. Below, we take a look at the portfolio performance of the LICs and LITs, represented by the pre-tax net tangible asset valuations (NTA after tax on realised gains and before tax on unrealised gains) figures for the LICs and net asset value for the LITs, as well as the dividends distributions declared for the FY23 period and how they compare to the prior year. We will provide a detailed account of the dividend coverage of the LICs in a later report.

[Please refer to attached document.]

Independent Investment Research, “IIR”, is an independent investment research house based in Australia and the United States. IIR specialises in the analysis of high quality commissioned research for Brokers, Family Offices and Fund Managers. IIR distributes its research in Asia, United States and the Americas. IIR does not participate in any corporate or capital raising activity and therefore it does not have any inherent bias that may result from research that is linked to any corporate/ capital raising activity.

IIR was established in 2004 under Aegis Equities Research Group of companies to provide investment research to a select group of retail and wholesale clients. Since March 2010, IIR (the Aegis Equities business was sold to Morningstar) has operated independently from Aegis by former Aegis senior executives/shareholders to provide clients with unparalleled research that covers listed and unlisted managed investments, listed companies, structured products, and IPOs. IIR takes great pride in the quality and independence of our analysis, underpinned by high caliber staff and a transparent, proven and rigorous research methodology.


Research analysts are not directly supervised by personnel from other areas of the Firm whose interests or functions may conflict with those of the research analysts. The evaluation and appraisal of research analysts for purposes of career advancement, remuneration and promotion is structured so that non-research personnel do not exert inappropriate influence over analysts.

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IIR restricts research analysts from performing roles that could prejudice, or appear to prejudice, the independence of their research.

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Other permitted activities: Analysts may be consulted by Firm sales personnel on matters such as market and industry trends, conditions and developments and the structuring, pricing and expected market reception of securities offerings or other market operations. Analysts may also carry out preliminary due diligence and vetting of issuers that may be prospective research clients of ours.


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This publication has been prepared by Independent Investment Research (Aust) Pty Limited trading as Independent Investment Research (“IIR”) (ABN 11 152 172 079), an corporate authorised representative of Australian Financial Services Licensee (AFSL no. 410381. IIR has been commissioned to prepare this independent research report (the “Report”) and will receive fees for its preparation. Each company specified in the Report (the “Participants”) has provided IIR with information about its current activities. While the information contained in this publication has been prepared with all reasonable care from sources that IIR believes are reliable, no responsibility or liability is accepted by IIR for any errors, omissions or misstatements however caused. In the event that updated or additional information is issued by the “Participants”, subsequent to this publication, IIR is under no obligation to provide further research unless commissioned to do so. Any opinions, forecasts or recommendations reflects the judgment and assumptions of IIR as at the date of publication and may change without notice. IIR and each Participant in the Report, their officers, agents and employees exclude all liability whatsoever, in negligence or otherwise, for any loss or damage relating to this document to the full extent permitted by law. This publication is not and should not be construed as, an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Any opinion contained in the Report is unsolicited general information only. Neither IIR nor the Participants are aware that any recipient intends to rely on this Report or of the manner in which a recipient intends to use it. In preparing our information, it is not possible to take into consideration the investment objectives, financial situation or particular needs of any individual recipient. Investors should obtain individual financial advice from their investment advisor to determine whether opinions or recommendations (if any) contained in this publication are appropriate to their investment objectives, financial situation or particular needs before acting on such opinions or recommendations. This report is intended for the residents of Australia. It is not intended for any person(s) who is resident of any other country. This document does not constitute an offer of services in jurisdictions where IIR or its affiliates do not have the necessary licenses. IIR and/or the Participant, their officers, employees or its related bodies corporate may, from time to time hold positions in any securities included in this Report and may buy or sell such securities or engage in other transactions involving such securities. IIR and the Participant, their directors and associates declare that from time to time they may hold interests in and/or earn brokerage, fees or other benefits from the securities mentioned in this publication.

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