Mirrabooka Investments (MIR) AGM 2025 Presentation summary

Investment philosophy and approach

• Focuses on small and medium-sized companies with attractive, sustainable return prospects and no impediments to growth.

• Emphasizes financial strength, resilient balance sheets, and management quality.

• Maintains a medium to long-term investment horizon, paying fair value and avoiding overpaying.

• Portfolio management includes growing holdings on conviction, selling on adverse changes, and monitoring for excessive valuations.

• Maintains a diversified portfolio to enhance consistency of returns.

Financial and portfolio performance

• FY2025 profit was $7.9m, down from $10.7m in 2024.

• Total fully franked dividend was 11.0¢, compared to 13.0¢ (including a special dividend) in 2024.

• Total portfolio return was 11.4%, underperforming the 15.2% benchmark.

• Management expense ratio improved to 0.54% from 0.56%.

• 1-year portfolio return was 10.5%, with 3, 5, and 10-year annualized returns of 22.9%, 13.7%, and 11.9% respectively.

Factors influencing performance

• Underperformance attributed to not holding gold stocks (16% of index), negative contributions from certain holdings, and capital raising dilution.

• Positive contributors included Temple & Webster and Cobram Estate.

• Management expenses and unrealized CGT also impacted returns.