Hearts and Minds Investments (HM1) H2 2026 earnings summary

Executive summary

• Increased final fully franked dividend to 10.0 cents per share, payable in October 2026, with the Board intending to continue regular fully franked dividends subject to profit reserves and franking balance.

• Portfolio delivered a pre-tax return of 5.2% for the year ended 30 June 2026, with a compound annual pre-tax return of 10.7% since inception in November 2018.

• Total shareholder return for FY26 was 3.1%, including dividends of 18.5 cents per share.

• $11.4 million donated to Australian medical research partners in FY26, with a cumulative $96.1 million donated since 2016.

Financial highlights

• Post-tax net tangible assets (NTA) per share decreased from $3.44 to $3.38 year-over-year.

• Discount to post-tax NTA stabilized at 12.7%.

• Annualized fully franked dividend yield at 6.8% as of 30 June 2026.

• Investment performance: 4.8% (6 months), 5.2% (1 year), 13.83% (3 years per annum), 10.72% (since inception per annum).

Outlook and guidance

• Board remains committed to narrowing the share price discount to NTA per share.

• Intention to continue paying fully franked dividends, subject to profit reserves and franking balance.

• Enhanced investment risk management process underway in partnership with Plato Asset Management.