AFIC reported net profit of $293.5 million for the year to June 30, 2026, representing a 3.0 percent increase from the prior year. Net profit attributable to members, excluding minority interests, rose 2.9 percent to $293.1 million. The result underscores the company’s positioning as a diversified, low-cost vehicle for long-term Australian equity exposure.
The board maintained the total ordinary dividend at 31.5 cents per share, fully franked, matching the prior year. This comprised an interim ordinary dividend of 12 cents paid in February, plus a final ordinary dividend of 14.5 cents payable in August. Special dividends of 2.5 cents per share were paid in February and are again being distributed, bringing total special distributions to 5 cents for the year. The board sourced 10 cents of the final and special dividends from realised capital gains, enabling some shareholders to claim a tax deduction on this component. A New Zealand imputation credit of 4 cents per share is attached to the final dividend.
The dividend approach reflects the board’s deliberate strategy of distributing accumulated franking credits built up in recent years while maintaining ordinary dividend levels consistent with historical practice. Net tangible assets per share declined to $7.93 from $8.33 in the prior year, reflecting challenging equity market conditions during the period. Revenue from operating activities grew modestly by 1.2 percent to $331.9 million, suggesting stable earnings from the investment portfolio despite the pressured asset values.
A key strength of the result is the continued improvement in cost management. The management expense ratio tightened to 0.14 percent from 0.16 percent, reinforcing AFIC’s competitive positioning among equity funds. This low-cost structure with no additional charges supports the delivery of competitive returns to shareholders and aligns with the company’s long-held strategy of low portfolio turnover and tax-effective outcomes.
Shareholders can participate in either the dividend reinvestment plan or dividend substitution share plan at nil discount to the volume weighted average price, with notices of participation required by August 6. The board will host a webcast briefing on July 27, followed by the annual general meeting on October 1. Looking ahead, investors should monitor how the fund manages its portfolio through market cycles, whether the cost discipline is maintained, and whether the dividend capacity remains sustainable given underlying asset values. This announcement is price sensitive and flagged as material by the ASX.
View the full ASX announcement (PDF)
About AFI (ASX: AFI)
AFI is listed on the Australian Securities Exchange (ASX: AFI).
If you would like to discuss this announcement or how it might affect your portfolio, request a callback or call us on 1300 889 603.
