Investment Performance

There are two key measures of Mirrabooka's investment performance.

Portfolio Performance

The growth of the Company's net asset per share plus dividends is a measurement of how the Company's investment portfolio has been managed. This is measured relative to the S&P/ASX Mid Cap 50 and Small Ordinaries Accumulation Indices (which also assumes reinvestment of dividends) and the rate of inflation (the Consumer Price Index).

Mirrabooka is a medium to long term investor, so our investment performance is focused over a corresponding period, say five to ten years. These performance numbers are after tax provided on capital gains and expenses.

% Per Year Return to 30 November 2017

Portfolio Performance_1711

 

Shareholder Price Performance

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. The performance compares favourably with returns provided by the S&P/ASX Mid Cap 50 and Small Ordinaries Accumulation Indices

% Per Year Return to 30 November 2017

Shareholder Price Performance_1711

The reason that these returns differ from those provided under Portfolio Return is that on occasions the Company's share price can 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 Mirrabooka'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 Mirrabooka sometimes fall out of favour when the general market is running strongly as investors may elect to invest in what can be more speculative growth stocks. Conversely when market conditions are more subdued investors may value a less volatile portfolio that provides a steady stream of dividend income
  • the relative low cost of managing the portfolio on the behalf of shareholders compared with managed funds.