Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — H1 FY2021 Earnings Presentation
18 slides from Australian Foundation Investment's earnings presentation, Jan 20, 2021
Slide 1: Interim Results Webcast Presentation ASX announcement
20 January 2021 The Manager ASX Market Announcements For personal use only Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Australian Foundation Investment Company Limited Interim Results Webcast Presentation Please find attached the prese
Slide 2: Interim Results Presentation
For personal use only Interim Results Presentation 20 January 2021
Slide 3: Disclaimer
For personal use only Disclaimer Australian Foundation Investment Company Limited and its subsidiary AICS (AFSL 303209), their related entities and each of their respective directors, officers and agents (together the Disclosers) have prepared the information contained in these materials in good fai
Slide 4: Our Company
For personal use only Our Company Invests in Australian and New Zealand companies – looking for quality for the long term. Largest listed investment company on the ASX at $8.1bn (also listed on NZX), 160k shareholders, full transparency through being listed, independent Board of Directors providing
Slide 5: Investment Objectives
For personal use only Investment Objectives The Company aims to provide The Company’s primary investment goals are: shareholders with attractive investment returns through access to a growing • to pay dividends which, over time, grow stream of fully franked dividends faster than the rate of inflatio
Slide 6: Interim Result Summary – months to December 2020
For personal use only Interim Result Summary – 6 months to 31 December 2020 * Assumes a shareholder can take full advantage of the franking credits. 5
Slide 7: What we look for in a diversified portfolio of quality stocks
For personal use only AFIC offers a diversified portfolio of quality stocks – what we look for Sustainable competitive Strong management Recurring, predictable Financial strength advantage – unique team and board earnings are preferred – strong cash flow assets producing strong and balance sheet ret
Slide 8: What we look for – continued
For personal use only AFIC offers a diversified portfolio of quality stocks – what we look for continued Businesses that can Nursery stocks Look to buy when we grow over the long – developing the see long term value term, producing preceding attributes growing dividends 7
Slide 9: Market and Selected Sector Performances
For personal use only Market and Selected Sector Performances S&P/ASX 200 Index Selected Sector Performance 8
Slide 10: Relative portfolio performance, including franking
For personal use only Relative portfolio performance, including franking* – returns to 31 December 2020 AFIC portfolio returns have a lower level of volatility (Beta of 0.91) than the Index. Returns include growing/stable fully franked dividends over a 10 year period. * Assumes an investor can take
Slide 11: Winners and losers – months to December 2020
For personal use only Winners and losers* – 6 months to 31 December 2020 Winners Losers Missed * Percentage gain/loss over the period. 10
Slide 12: Major portfolio changes
For personal use only Major portfolio changes Purchases Sales Top up transactions Transactions that demonstrate New Additions for the half the investment process in the half Included participation in placement Included participation in placement 11
Slide 13: Top holdings – December 2020
For personal use only Top 30 holdings – 31 December 2020 Total Portfolio 61 Holdings Rank Company % of Portfolio 1 Commonwealth Bank of Australia 8.1% 2 CSL 7.7% 3 BHP Group* 7.4% 4 Wesfarmers 4.7% 5 Transurban Group 4.1% 6 Westpac Banking Corporation 3.8% 7 Macquarie Group 3.8% 8 National Australia
Slide 14: Top holdings – December 2020 continued
For personal use only Top 30 holdings – 31 December 2020 continued Total Portfolio 61 Holdings Rank Company % of Portfolio 11 Mainfreight 2.7% 12 Australia and New Zealand Banking Group 2.4% 13 Amcor 2.2% 14 James Hardie Industries* 2.2% 15 Sydney Airport* 2.1% 16 Telstra Corporation 2.0% 17 Bramble
Slide 15: Top holdings – December 2020 continued
For personal use only Top 30 holdings – 31 December 2020 continued Total Portfolio 61 Holdings Rank Company % of Portfolio 21 Sonic Healthcare 1.5% 22 Ramsay Health Care 1.5% 23 Seek 1.5% 24 Reece 1.5% 25 ResMed 1.4% 26 ARB Corporation 1.4% 27 Fisher & Paykel Healthcare 1.4% 28 Qube Holdings 1.3% 29
Slide 16: Outlook
For personal use only Outlook The onset Full impact Difficult to reconcile We believe the New administration of COVID-19 of economic expansion of market portfolio is well in the US and means low conditions valuations, although positioned given Australia's position interest rates on company it is bei
Slide 17: Questions
For personal use only 16 Questions
Slide 18: For personal use only
For personal use only
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