Australian Foundation Investment Company (AFI) Company presentation summary

Market overview and macro environment

• Australian sharemarket reached an all-time high by February 2026, with notable divergence in company performance within the index.

• Dividend yields on the ASX 200 are at their lowest in 20 years, impacting income-focused investors.

• Ongoing geopolitical uncertainty, such as the unresolved Iran war, continues to influence oil prices and market sentiment.

• Companies like Woodside are strategically positioned to manage supply chain disruptions and market dislocations.

Investment themes and portfolio positioning

• Artificial intelligence adoption is accelerating, shifting from curiosity to practical business integration, with mixed views on employment impacts.

• Investment strategies emphasize competitive advantages such as proprietary data and network effects, especially amid market volatility.

• Four distinct funds focus on different segments: large-cap, enhanced yield, small/mid-cap, and high conviction growth, collectively managing ~$12 billion.

Fund performance and portfolio activity

• AFIC delivered a 10-year annualized portfolio return of 10.6% with a 6.5% grossed-up dividend yield; recent buys include JB Hi-Fi and CAR Group.

• Djerriwarrh achieved a 10-year annualized return of 9.3% and maintains higher yields through option strategies; recent focus on JB Hi-Fi and CAR Group.

• Mirrabooka posted a 10-year annualized return of 10.8%, with significant recent purchases in discounted growth stocks.

• AMCIL reported a 10-year annualized return of 8.7%, with no exposure to banks or gold, and a portfolio positioned for diverse economic scenarios.