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Mirrabooka Half-Year Report for the period 31 December 2021

Mirrabooka Half-Year Report for the period 31 December 2021

Mirrabooka Half-Year Report for the period 31 December 2021

Mirrabooka delivers another period of outperformance

  • For the six-month period, Mirrabooka’s portfolio return including the benefit of franking was 11.1%. This is ahead of the combined Small and Mid Cap 50 sector benchmark including franking, which was up 8.1% over the same period.
  • The 12-month portfolio return including franking was 26.1%; the combined Small and Mid Cap 50 benchmark return over the corresponding period including franking was 19.8%.
  • Half Year Profit was $4.2 million, up from $3.4 million in the corresponding period last year. The increase in profit was due primarily to an increased contribution from investment income as many companies increased or reinstated dividends, following reductions made with the onset of the COVID-19 pandemic.
  • The interim dividend has been maintained at 3.5 cents per share fully franked.
  • In an environment where interest rates have been very low and economic activity has recovered strongly from the COVID-19 pandemic our investment considerations are factoring in higher interest rates and increasing costs over the medium term. As such, pricing power has been a particular focus in our assessment of the quality of a company and its position in the portfolio.
  • Current market conditions arising from low interest rates have also seen valuations move to levels where we observe elevated price risk across many stocks. Adjustments made to the portfolio through the period, reflecting the increased valuation risk, produced after tax realised gains of $27.7 million. In the corresponding period last year, after tax realised gains were $15.3 million.
  • At the end of December 2021, Mirrabooka was close to fully invested. We continue to view the portfolio as well diversified and offering a profile of superior competitive advantage and attractive growth potential when compared to the broad market index.

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