Benefits of investing in AMH

AMCIL's portfolio comprises 30 to 40 stocks covering large and small companies in the Australian equity market. As a result small companies by market size can have an equally important impact on AMCIL's portfolio returns as larger companies in the Australian market.

A Board and Investment Committee with extensive investment skills and practical business experience.

A fund with no upfront fees or commissions to third parties - transaction costs will be borne when buying and selling AMCIL shares through a stockbroker.

Managements expense ratio - 0.69% for the financial year to 30 June 2018.

Effective capital management:

• a dividend reinvestment plan which allows investors to cost effectively put their dividends back into the Company. 
• activation of the share buy back program which gives the Company the flexibility to buy back shares at appropriate times, particularly if the shares start trading at a discount to their net asset backing.

AMCIL as a separate legal entity pays tax just like any other company. However the tax is small because companies receiving fully franked dividends do not need to pay any additional tax on the franked dividend. These fully franked dividends are typically passed straight through to shareholders in August of each year with the payment of the dividend. 

Yearly and half yearly profit announcements, regular shareholder briefings and access to all company announcements, including net asset backing announcements that are intended to keep shareholders informed about the Company's activities and performance.

About the Fund

Shareholders have immediate access to:

• A concentrated portfolio with a mix of small and large companies.

• A Board and Investment Committee with extensive investment skills and practical business experience. 

• A fund with no upfront fees or commissions to third parties - transaction costs will be borne when buying and selling Amcil shares through a stockbroker.

• Low management expense ratio relative to similar funds - 0.68% for the financial year to 30 June 2017.

• Effective capital management.

• Simplified taxation structure for shareholders, because AMCIL as a separate legal entity pays tax just like any other company, however the tax is small because companies receiving fully franked dividends do not need to pay any additional tax on the franked dividend. These fully franked dividends are typically passed straight through to shareholders in August of each year with the payment of the dividend. Unit trusts on the other hand typically have many components of income in their distributions like fully franked dividends, concessional capital gains tax, short-term capital gains, tax deferred components. All of which add to the complexity to unit holders tax returns.

• An active approach to keeping shareholders informed about the Company's activities and performance, including yearly and half yearly profit announcements and access to all company announcements, including net tangible asset announcements.

AMCIL's Structure

AMCIL, along with other listed investment companies, has what is termed 'a closed end' structure. This means the number of shares on issue is fixed and set by the Board from time to time.

As a result, AMCIL does not issue new shares or cancel them as investors enter and leave the fund. This allows us to concentrate on the performance of the stocks within the portfolio without having to provide for continuous inflows or outflows of monies. 

The "closed end" structure also removes the motivation to shadow indices and we can therefore take a much longer term approach to our investment horizon. The costs of administering the fund are also reduced as we are not continually issuing and redeeming units in the fund.

This structure also provides AMCIL with the ability to pay franked dividends.

How we invest your money

AMCIL has three portfolios of securities: the investment portfolio, the options written portfolio and the trading portfolio. Details of all holdings (except for specific option holdings) as at the end of the reporting period can be found at the end of the Annual Report.

The investment portfolio holds securities which the company intends to retain on a long-term basis. The options written portfolio and trading portfolio are held for short-term trading only. The latter is relatively small in size when utilised. The options written portfolio can contain both call and put options and call options are only written over securities held in the investment portfolio.