Australian Foundation Investment Company (ASX: AFI) Portfolio Manager Brett McNeill said the company maintained a strong franking position during FY26, enabling the payment of another fully franked special dividend. Although the portfolio underperformed a market led by strong resources stocks, AFI remained active in reshaping its investments, increasing holdings in Sigma Healthcare, Telstra and Woolworths while exiting WiseTech Global, Worley and Sonic Healthcare. The company also continued buying back its own shares as they traded at a discount to net tangible assets.
Looking ahead, McNeill said the Australian market remains moderately expensive after four consecutive years of gains, reinforcing the importance of investing in high-quality businesses with long-term growth potential. He said AFI remains well positioned to take advantage of opportunities as they emerge. “The key for us is to keep focused on quality companies, keep being diversified and continue to look for opportunities,” he said.
