Monthly Listed Investment Trust Report – Jun 2025

This story features HEARTS AND MINDS INVESTMENTS LIMITED, and other companies. For more info SHARE ANALYSIS: HM1

The company is included in

Download related file: IIR-LMI-Monthly-Update_6-June-2025

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.

Note: For comprehensive comparative data tables for LICs and ETFs please see attached.

HM1 Leadership Restructure
On 19 May 2025, Hearts & Minds Limited ((HM1)) announced the restructure of its leadership. After a short stint as CEO, Brett Jollie will step down from the role with the efficiency gains implemented in Brett’s short tenure resulting in the CEO position becoming a part time role. Richard Howes will be appointed to the position with Brett remaining with the business until 30 June 2025.

During his time at HM1 Brett has conducted a review of the operating model, established a new dedicated investment operations function and implemented an investment management system to automate and improve management and oversight. These enhancements have improved the automation and efficiency and are welcomed by the team, however reduce the operational requirements of the CEO position.

MIR Entitlement Offer Oversubscribed
On 6 May 2025, Mirrabooka Investments Limited ((MIR)) announced a 1-for-7 Entitlement Offer. Shares will be issued at $3.06 per share, representing the average of the weekly estimated pre-tax NTA over the period from 4 April 2025 to 2 May 2025. The Company opted to base the offer price on the average NTA given the volatility in the market.

The Company was seeking to raise up to $85 million with the capital to be deployed in line with the investment mandate of the Company.

The Company may not deploy the capital raised straight away with the team seeking to take advantage of opportunities with the expectation of uncertain conditions in coming months.

The Offer closed on 2 June 2025, with the Offer oversubscribed as investors took the opportunity to gain additional exposure at what has turned out to be a significant discount to NTA as at 31 May 2025 given the market rally.

The Board has determined to scale back some of the applications given the oversubscription. Shares issued under the Offer are expected to commence trading on 11 June 2025 with the new shares eligible for the final dividend of 6.5 cents per share, fully franked.

WHF NPAT Up 9.6% in FY25
During the month, Whitefield Industrials Limited ((WHF)) released the results for the year ended 31 March 2025.

Revenue from ordinary activities was up 6.9% on the pcp to $26.4 million and NPAT was up 9.6% to $22.4 million. Investment revenue was driven by dividend increases across a number of holdings including CBA, WBC, NAB, QBE and Woolworths.

The Company declared a final dividend of 10.5 cents per share. The dividend will be fully franked and 20% of its value will be attributed to LIC Capital Gains. The EPS of 18.7 cents per share is below the full year dividend of 21 cents per share, however the Company is confident it will continue to grow its Investment Revenue and has a healthy level of reserves and retained profits to draw on to top up the dividend.

The Company has grown the EPS over its long history as was highlighted by the below chart provided by the Company in its results. EPS growth has been attributed to the underlying growth in the earnings of Australian industrial economy, population growth, productivity and reinvestment.

On a gross basis, the portfolio achieved its objective of outperforming the S&P/ASX200 Industrials Accumulation Index and outperformed the broader domestic market with WHF being one of the better performers in the peer group over the short and medium term periods.

[For more: see PDF report attached]

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.

INDEPENDENCE OF RESEARCH ANALYSTS

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.

Supervision and reporting lines: Analysts who publish research reports are supervised by, and report to, Research Management. Research analysts do not report to, and are not supervised by, any sales personnel nor do they have dealings with Sales personnel

Evaluation and remuneration: The remuneration of research analysts is determined on the basis of a number of factors, including quality, accuracy and value of research, productivity, experience, individual reputation, and evaluations by investor clients.

INDEPENDENCE ACTIVITIES OF ANALYSTS

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

Pitches: Research analysts are not permitted to participate in sales pitches for corporate mandates on behalf of a Broker and are not permitted to prepare or review materials for those pitches. Pitch materials by investor clients may not contain the promise of research coverage by IIR.

No promotion of issuers’ transactions: Research analysts may not be involved in promotional or marketing activities of an issuer of a relevant investment that would reasonably be construed as representing the issuer. For this reason, analysts are not permitted to attend “road show” presentations by issuers that are corporate clients of the Firm relating to offerings of securities or any other investment banking transaction from that our clients may undertake from time to time. Analysts may, however, observe road shows remotely, without asking questions, by video link or telephone in order to help ensure that they have access to the same information as their investor clients.

Widely-attended conferences: Analysts are permitted to attend and speak at widely-attended conferences at which our firm has been invited to present our views. These widely-attended conferences may include investor presentations by corporate clients of the Firm.

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.

INDUCEMENTS AND INAPPROPRIATE INFLUENCES

IIR prohibits research analysts from soliciting or receiving any inducement in respect of their publication of research and restricts certain communications between research analysts and personnel from other business areas within the Firm including management, which might be perceived to result in inappropriate influence on analysts’ views.

Remuneration and other benefits: IIR procedures prohibit analysts from accepting any remuneration or other benefit from an issuer or any other party in respect of the publication of research and from offering or accepting any inducement (including the selective disclosure by an issuer of material information not generally available) for the publication of favourable research. These restrictions do not preclude the acceptance of reasonable hospitality in accordance with the Firm’s general policies on entertainment, gifts and corporate hospitality.

DISCLAIMER

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.

IIR, its officers, employees and its related bodies corporate have not and will not receive, whether directly or indirectly, any commission, fee, benefit or advantage, whether pecuniary or otherwise in connection with making any statements and/or recommendation (if any), contained in this Report. IIR discloses that from time to time it or its officers, employees and related bodies corporate may have an interest in the securities, directly or indirectly, which are the subject of these statements and/or recommendations (if any) and may buy or sell securities in the companies mentioned in this publication; may affect transactions which may not be consistent with the statements and/or recommendations (if any) in this publication; may have directorships in the companies mentioned in this publication; and/or may perform paid services for the companies that are the subject of such statements and/or recommendations (if any). However, under no circumstances has IIR been influenced, either directly or indirectly, in making any statements and/or recommendations (if any) contained in this Report. The information contained in this publication must be read in conjunction with the Legal Notice that can be located at http://www.independentresearch.com.au/Public/Disclaimer.aspx.

Content included in this article is not by association the view of FNArena (see our disclaimer).

Find out why FNArena subscribers like the service so much: “Your Feedback (Thank You)” – Warning this story contains unashamedly positive feedback on the service provided.

FNArena is proud about its track record and past achievements: Ten Years On

Click to view our Glossary of Financial Terms