Argo Investments has announced a half-year profit of $130.8 million, leading to an increased fully franked interim dividend of 18.5¢ a share, a rise from 17¢ the previous year. The company reported earnings per share climbing to 17.2¢, up from 15.9¢. Argo Investments is an Australian investment firm focused on delivering long-term returns to shareholders through a diversified portfolio of Australian equities. It aims to provide investors with access to a professionally managed portfolio.
Investment revenue remained relatively stable, with profit growth attributed to increased income from trading and options activities. The management expense ratio saw a slight decrease to 0.14 per cent. Argo intends to neutralise its dividend reinvestment plan through on-market share purchases and highlighted its robust franking balance.
During the six months ending December 31, Argo’s net tangible assets (NTA) returned 1.4 per cent, underperforming the S&P/ASX 200 Accumulation Index’s 3.6 per cent gain. This was largely due to an underweight position in gold stocks. Portfolio adjustments included new positions in companies like CSL, Amcor, Worley, Rio Tinto, and BHP. Conversely, the fund exited its holdings in Healius and GPT, resulting in a total of 83 holdings in the portfolio.
Looking forward, Argo expressed caution regarding the economic outlook, citing geopolitical uncertainties and the Reserve Bank of Australia’s recent interest rate hike, the first in over two years, as factors contributing to a highly uncertain environment.
