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Investment Performance

There are two key measures of Djerriwarrh’s investment performance.

Portfolio Management

The growth of the Company’s net assets per share plus dividends is a measurement of how the Company’s portfolio of investments has been managed. This is measured relative to the S&P/ASX 200 Accumulation Index (which also assumes reinvestment of dividends).

Djerriwarrh is a medium to long term investor, so our investment performance is focused over a corresponding period, say five to ten years.

Portfolio Performance_1909

 Note: Djerriwarrh net asset per share growth plus dividend series is calculated after management fees, income tax and capital gains tax on realised sales of investments. It also does not reflect the value of franking credits attached to the dividends paid by Djerriwarrh which adds approximately 2.7 per cent to the portfolio return and 1.4 per cent additional return when compared to the Index. It should be noted that Index returns for the market do not include the negative impact of management expenses and tax on their performance.


Shareholder Return

Total return to shareholders is measured by the change in the share price plus dividends. The following table is calculated assuming a reinvestment of dividends.

Period ending 30 September 2019

Shareholder Return_1909

The reason that these returns differ from those provided under Portfolio Return is that on occasions the Company’s share price can move to trade at a discount or premium to net asset backing i.e. the value of the portfolio. A number of different factors influence this discount/premium including:

  • market perception of the Djerriwarrh’s future earnings potential
  • perception of management and likely future performance
  • supply and demand for shares at any one time can fluctuate. In particular, listed investment company shares such as Djerriwarrh sometimes fall out of favour, when the general market is running strongly investors may elect to move out of "value" shares into "growth stocks". Conversely when market conditions are more subdued investors may value a steadier stream of dividends and a value based approach to investing
  • the relative benefit of lower costs of managing the portfolio on the behalf of shareholders compared with the higher costs associated with a large proportion of managed funds.

Please note: Djerriwarrh is not making any representations concerning its future investment performance. Investment markets can be volatile and can rise and fall quickly and sometimes significantly. Past performance is not necessarily indicative of future performance.