Features of Djerriwarrh
Djerriwarrh is a listed investment company investing in Australian equities with a focus on stocks where there is an active options market. The Company uses exchange traded options to enhance income return to investors. The Company pays out a high percentage of profits as fully franked dividends. Dividends are able to be sourced from current year profits, retained profits and profits from the sale of investments.
Djerriwarrh aims to provide shareholders with attractive investment returns through access to a steady stream of fully franked dividends and enhancement of capital invested.
In this regard the primary goals are:
- to pay an enhanced level of fully franked dividends; and
- to provide attractive total returns over the medium to long term.
Key Features are:
- A diversified portfolio numbering around 50 companies.
- A Board and Investment Committee with extensive investment skills and practical business experience.
- No upfront fees or commissions to third parties - transaction costs will be borne when buying and selling Djerriwarrh shares through a stockbroker.
- Low managements fees - 0.44% for the financial year to 30 June 2018
- Effective capital management:
- a dividend reinvestment plan which allows investors to cost effectively put their dividends back into the Company. The DRP is currently suspended.
- from time to time, a share purchase plan which allows shareholders to top up their holdings with no brokerage and sometimes at a small discount to the market price.
- activation of the on-market share buy back program which gives the Company the flexibility to buy back shares at appropriate times, particularly if the shares start trading at a discount to their Net Asset Backing
- Simple taxation structure for shareholders because Djerriwarrh as a separate legal entity pays tax just like any other company. However the tax is small because companies receiving fully franked dividends do not need to pay any additional tax on the franked dividend. These fully franked dividends are passed straight through to shareholders in March and August of each year. Certain Australian shareholders can also claim a tax benefit where the dividend is sourced from a LIC capital gain.
- An active approach to keeping shareholders informed about the Company’s activities and performance, including yearly and half yearly profit announcements, regular shareholder briefings and access to all company announcements, including Net Asset Backing announcements.