The net operating result was $254.2 million, an increase of 8.5 per cent from the previous year’s result of $234.3 million.
AFIC’s portfolio return after expenses and tax for the 12 months was 17.3 per cent, slightly below the ASX 200 Accumulation Index of 17.4 per cent.
The investment company noted, however, that its 10-year 9.8 per cent per annum portfolio return remains above the index return of 9 per cent per annum.
New additions to the AFIC portfolio included Qube Holdings, Washington H. Soul Pattinson, James Hardie Industries, TPG Telecom, Twenty First Century Fox, Japara Healthcare and Resmed.
AFIC also substantially increased its holdings in Transurban, CSL, Telstra and Equity Trustees.
Regarding its outlook for the market, AFIC said the recent strong returns and low volatility suggest investors have become somewhat complacent about the potential for setbacks.
“However, we believe the risks are elevated – there is an ongoing reliance on low interest rates to support sentiment and growth and the potential for subdued earnings outcomes,” said the investment company.
“At some point, interest rates will rise, although the timing and impact still remains uncertain.”
AFIC said unanticipated geopolitical events are also a risk.
Despite this, however, the company expects there will continue to be attractive opportunities for investment, which may include initial public offerings and the privatisation of government assets.
