Djerriwarrh (market cap: $796.83m) is a listed investment company (LIC), specialising in investing in Australian equities where there is an active options market. Its top 20 investments include: Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corporation (ASX: WBC), BHP (ASX: BHP), National Australia Bank (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ).

Report highlights:

• Profit for the HY was $11.9 million, 3.8% down from previous corresponding period
• Key components of the result were due to an increase in dividends received, with a large uplift from material and energy companies, and a reduction in contribution of the trading portfolio compared with the prior corresponding period as the gains made last half year were not repeated this half.
• Six month portfolio return was 7.2%; (8.6% including franking), compared to S&P/ASX200 Accumulation Index Return of 8.4% (9.2% including franking).
• Interim dividend (fully franked) of 10 cents per share will be paid to shareholders, unchanged. Dividend Reinvestment Plan is in place at 5% discount.
• Portfolio additions included CSL, Woolworths, BHP, National Australia Bank and Macquarie Group. New companies added to the portfolio included Brickworks, Ansell and Dulux Group.
• Major portfolio sales were predominantly because of a deterioration in the outlook for some companies, this included Telstra and TPG Telecom.
• Quality companies displaying strong growth prospects are currently on high valuations, making it a challenging investment environment.

Read the full report.

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