AUI achieved a pre-tax NTA accumulation return of 9.5% for the financial year ended 30 June 2026, outperforming the S&P/ASX 200 Accumulation Index by 340 basis points while maintaining the fully franked dividend at 45 cents per share. The underlying profit after tax of $59.3 million, which excludes special income and merger-related items, reflects solid portfolio performance during a year that included the successful integration of Diversified United Investment Limited.
The outperformance was consistent across multiple timeframes, with AUI delivering 12.8% over one year, 9.5% over three years, and 10.2% over five years against index comparisons of 10.6%, 7.8%, and 9.4% respectively. This sustained outperformance speaks to the portfolio construction strategy and active management approach. The pre-tax NTA grew 5.9% during the year to $13.75 per share, while the post-tax NTA expanded 12.5% to $11.91 per share, reflecting the impact of accounting for unrealised gains and losses in the tax provision line.
The merger completed on 30 April 2026 created a larger listed investment company with a market capitalisation of approximately $2.6 billion and portfolio assets of $3.1 billion. Beyond scale, the combination delivered operational efficiencies through the elimination of duplicate expenses and broadened the portfolio’s diversification by incorporating international equities. The merger has also enhanced the daily ASX liquidity of AUI shares, addressing a historical constraint for investors seeking meaningful positions.
The dividend policy demonstrates a long-term shareholder-focused approach. AUI has maintained or increased dividends every year since 1994, and the FY2026 distribution includes an 8 cents per share special dividend. The Board has provided guidance that it expects to pay a similar 8 cents special dividend for each of the next three years, subject to the absence of unforeseen circumstances and supported by the franking account balance and profit reserves. The ordinary dividend component of 37 cents per share remains fully franked, providing Australian taxpayers with valuable franking credits alongside the yield.
Operating efficiency remains competitive, with the management expense ratio standing at 0.09% excluding finance and non-recurring costs, demonstrating effective cost discipline at scale. This efficiency, combined with the portfolio’s outperformance and capital structure, positions AUI to continue delivering returns above the broader market.
Investors should monitor the execution of the merger’s operational integration to confirm the realisation of the targeted cost savings, and track whether the portfolio’s outperformance trajectory can be sustained through varying market cycles. The announced special dividend guidance provides visibility on distributions, though this remains conditional on market conditions. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Australian United Investment Company Limited (ASX: AUI)
Australian United Investment Company Limited is a listed investment company that seeks to provide income and capital appreciation to shareholders through a portfolio of securities predominantly comprising shares of companies listed on the ASX. The company invests in the public equity markets of Australia across sectors including banks, financials, healthcare, consumers, infrastructure, transport, mining and energy. Founded in 1953 and based in Melbourne, Australia, it operates as a publicly owned investment manager.
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