Argo Investments (ARG) 2015 AGM Report

Company/ASX Code : Argo Investments Limited (ARG)
Venue :
10am Adelaide Convention Centre
North Terrace
Adelaide, South Australia
Monitor : Mr John Worthley
AGM Details / NoM : Monday 26th October, 2015
# of Attendees : 416 shareholders plus visitors
# Holdings represented by ASA : 508
Value of Proxies : $58.2 million
# Shares Represented by ASA : 7.6 million
Market Capitalisation : $5.1 billion

Jason and the Argonauts deliver 'steady as she goes' performance

Argo’s Chairman identified Argo’s results for the year that were a record for the company in what was a difficult year for investors given the volatility that had occurred. Argo received two awards from industry monitors that identified Argo as the leading LIC for 2015. The Chairman also outlined the strategic development for the company by the establishment of a wholly owned subsidiary, Argo Service Company Pty Ltd, a company registered under an Australian Financial Services Licence. Argo also sponsored the establishment of Argo Global Listed Infrastructure Limited that was listed on the ASX on 3 July 2015. The new IPO raised $268m from 11,000 investors of whom 50% were Argo shareholders.

The Chairman’s address highlighted the sustainable performance of the portfolio during a period of significant economic uncertainty. Profit for the year increased by 16.5% and enabled a small increase in the dividend distributed during the year, the net tangible assets of the company increased by 2.3% to $7.52 per share resulting in an increase in shareholder wealth. Benchmark performance comparisons were made against the ASX 200 Accumulation Index that indicated performance of 6.1% for the current year against 5.7% for the ASX 200 accumulation index.

The Managing Director, Mr Jason Bedow, provided an overview of the investment process undertaken by Argo and a backgrounding of the basis for the acquisition and disposal of equities that had taken place during the year. He reconfirmed the investment philosophy of Argo for investment in companies with solid franchises, strong balance sheets and the likelihood of continued dividend growth. An update of investment acquisitions and disposals subsequent to balance date was also provided.

All resolutions were passed on a show of hands. ASA supported all resolutions.