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Half-Year Report for the period to 31 December 2020

Half-Year Report for the period to 31 December 2020

Half-Year Report for the period to 31 December 2020

Mirrabooka delivers strong portfolio performance

  • For the 6 month period, Mirrabooka’s portfolio return, including the benefit of franking, was 33.0%. This is ahead of the combined Small and Mid Cap 50 sector benchmark, including franking, which was up 21.9% over the same period.
  • The 12 month portfolio return, including franking, was 29.2%; the combined Small and Mid Cap 50 benchmark return over the corresponding period, including franking, was 13.8%.
  • Volatile market conditions continued through the period due the impact of the COVID-19 pandemic and subsequent government and central bank policy responses. This volatility was even more present in the small and mid-cap sectors of the market in which Mirrabooka invests. The long-term adjustments made to the portfolio, including a narrowing of the focus into preferred holdings with quality franchises, has been particularly beneficial through this volatility.
  • Half Year Profit was $3.4 million down from $4.4 million in the corresponding period last year. The fall in profit was due primarily to a reduced contribution from investment income as many companies lowered or suspended dividend payments. Adjustments made to the portfolio though the period produced after tax realised gains of $15.3 million. In the corresponding period, last year, after tax realised gains were $11.6 million.
  • The interim dividend has been maintained at 3.5 cents per share fully franked.
  • Despite the overall strength in the market, we have found opportunities to add new companies to the portfolio. NIB, Superloop and Nanosonics were purchased through temporary price weakness and Nuix was added through an initial public offering. The most material selling in the 6-month period has come from trimming some of the strongest portfolio performers, Objective Corporation and HUB24, and exiting our positions in Premier Investments and OptiComm, which was taken over. Selling activity has otherwise been relatively subdued as we remain confident in the stocks that we own.
  • Mirrabooka remains focussed on long term opportunities in high quality companies and we are confident that with patience future market volatility will provide additional opportunities to invest. At the end of December 2020, Mirrabooka was close to fully invested and has therefore announced a Share Purchase Plan with this result to provide additional funds for the portfolio.

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