Australian Foundation Investment Company (AFI) AGM 2025 summary

Opening remarks and agenda

• The Chair opened the meeting, introduced the board, executive team, and auditors, and outlined the hybrid format and agenda, which included investment objectives, financial results, market and portfolio review, and outlook presentations by key executives.

• Shareholders were briefed on how to submit questions and vote, both online and in-person, with voting opened on all items of business.

Financial performance review

• Portfolio return for the year was 7.4%, underperforming the ASX 200's 16% and the S&P/ASX 200 Accumulation Index at 15.1%, with underperformance attributed to sector allocation and specific stock challenges.

• Profit for the year was AUD 285 million, down from AUD 296.4 million the previous year, with dividend income down 3% and costs rising, resulting in a management expense ratio (MER) of 0.16%.

• Fully franked dividends totaled AUD 0.315 per share (14.5¢ final, 5.0¢ special), with a gross yield of 4.7%.

• Share price at $7.33 was below NTA of $8.34 as of 31 August 2025.

Dividend announcements

• A special fully franked dividend of AUD 0.05 per share was paid, sourced from realized gains, and the ordinary dividend was increased, maintaining a stable to growing dividend policy over the past seven years.

• The company maintains a significant franking credit reserve, sufficient to pay just under AUD 0.55 per share of franked dividend.

• Dividend was increased in FY25 despite lower aggregate dividends from ASX 200 companies.