• Profit after tax up 2.7% to $154.2 million
• Interim dividend increased to 12.0 cents per share, fully franked
• Portfolio return of 13.2% in 12 months to 31 December 2024, outperforming benchmark

AFIC's investment focus is on a diversified portfolio of primarily Australian equities, seeking to provide attractive income and capital growth to shareholders over the medium to long term. In the half-year to 31 December 2024, AFIC reported a 2.7% increase in profit after tax to $154.2 million, with revenue from operating activities up 3% to $173.5 million. The interim dividend was increased to 12.0 cents per share, fully franked, up from 11.5 cents in the previous corresponding period. The portfolio return for the half-year was 7.2%, including franking, compared to 7.6% for the S&P/ASX 200 Accumulation Index. Over the 12 months to 31 December 2024, AFIC's portfolio returned 13.2%, ahead of the benchmark's 12.7% return. During the period, AFIC increased holdings in BHP, Woodside Energy Group, Telstra Group, Cochlear, James Hardie Industries and WiseTech Global, while initiating new positions in Ampol, Worley, Macquarie Technology, BlueScope Steel, and Sigma Healthcare. The company also exited Ramsay Health Care, Domino's Pizza Enterprises, and Mineral Resources. AFIC's global portfolio, first initiated in 2021, has exceeded its benchmark index since inception and now represents around 1.6% of the overall portfolio.

The outlook for equity markets remains highly uncertain, with heightened geopolitical tensions and election outcomes in many developed markets expected to lead to a wide dispersion of potential investment outcomes in the near term. Equity market volatility is expected to remain a feature, and the operating environment for many companies appears set to become increasingly challenged, with sales growth slowing and cost inflation remaining elevated. In this environment, AFIC is cautiously allocating capital, seeking to utilise prevalent share price volatility to invest in quality companies with strong long-term growth prospects at attractive prices.