Revenue for the six-month period included $11 million of demerger dividends from the recent Brambles/Recall and Amcor/Orora demergers.
The net operating result per share for the six months ending 31 December 2013 was 13.2 cents per share, with an interim dividend at 8 cents per share fully-franked to be paid on 21 February 2014.
The portfolio return for the six months was 14.3 per cent, which was above the ASX200 Accumulation Index return of 14 per cent for the same period.
The 12-month return for AFIC of 22 per cent was also above the index result, which was 20.2 per cent.
According to the AFIC half-yearly report, the key contributors to the portfolio performance were high yielding stocks such as Telstra and Wesfarmers, and the recovery of BHP Billiton and Rio Tinto share prices.
The major transactions during the period included the purchase of Perpetual, as a result of its takeover of the Trust Company, along with Washington H Soul Pattinson, Twenty First Century Fox, TPG Telecom, James Hardie Industries and ResMed.
The major sales included Telstra and GUD Holdings.
AFIC stated in its report that it expects the Australian economy to face subdued growth in 2014 with “declining levels of investment spending in the resources sector, further fiscal tightening and low levels of business and consumer confidence”.
While ongoing low interest rates and a weaker Australian dollar may provide some support to economic activity, according to AFIC, sustained growth will only be achieved with reform leading to increased productivity and business confidence.
“Against this backdrop, we perceive the Australian equity market to be currently fully valued. We remain on the lookout for attractive long-term investment opportunities, but are prepared to be patient at this point,” he said.
