Australian Foundation Investment Company (AFI) H2 2025 earnings summary

Executive summary

• Largest listed investment company on the ASX with 150,000 shareholders, focused on long-term, low-turnover investing in Australian, New Zealand, and select international equities, and a management expense ratio of 0.16% with no performance fees.

• Emphasis on stable to growing fully franked dividends and attractive total returns over the medium to long term, with a history of sustaining payouts even during downturns by drawing on franking credit reserves.

• Special dividend of AUD 0.05 per share paid from realized capital gains, particularly from trimming CBA holdings.

Financial highlights

• Full-year profit of AUD 285 million, down from AUD 296.4 million last year, with operating EPS declining 22.7%.

• Portfolio return (including franking) was 10.7%, underperforming the ASX 200 benchmark of 15.1%.

• Fully franked dividend per share totaled AUD 0.315 (including a 0.05 special dividend), up from 0.26 last year.

• NTA at 30 June 2025 was $8.33 per share; share price was $7.35.

Outlook and guidance

• Market remains fully priced and resilient despite tariff uncertainty, geopolitical tensions, and global uncertainties.

• Company earnings outlook is less certain, prompting a disciplined focus on costs and identifying quality companies temporarily mispriced due to short-term negative news.