Financial Data and Key Metrics Changes - The profit for the year decreased to $6.7 million from $7.5 million in 2024, attributed to reduced dividends received and fewer gains on the trading portfolio [6][7][9] - Realized gains after tax amounted to $13.7 million, which are not included in the profit figure [7] - The total dividend for the year increased to 6.5 cents from 4 cents last year, consisting of a normal final dividend of 2.5 cents and a special dividend of 3 cents [9] - The portfolio return was 6.4%, significantly below the market return of 15.1% [9] Business Line Data and Key Metrics Changes - The company experienced a reduction in dividends received due to the sale of high-yielding stocks and a shift towards stocks with different growth profiles [6] - The expense ratio remained stable at 56 basis points, indicating consistent operational costs [9] Market Data and Key Metrics Changes - The company is trading at a discount to its net tangible asset (NTA), a common issue faced by many Listed Investment Companies (LICs) [11][12] - The board is aware of the discount and has initiated a share buyback to help mitigate this issue [12][13] Company Strategy and Development Direction - The company aims to focus on quality stocks with strong profit growth potential and sustainable competitive advantages [18][21] - A disciplined investment approach has been adopted, with a focus on maintaining a low turnover portfolio and avoiding overvalued stocks [17][22] - The management is actively engaging with investors to educate them about the benefits of investing in the company, especially given its low management expense ratio and absence of performance fees [59][60] Management's Comments on Operating Environment and Future Outlook - The management expressed a cautious stance on the market, highlighting high valuations and the need for a defensive position [49][51] - Concerns were raised about external factors such as tariffs and a nervous corporate environment ahead of the reporting season [52][53] - The management remains committed to investing in financially strong companies with growth potential, despite the current market challenges [53] Other Important Information - The company has engaged a business development manager to connect with potential investors and financial planners [59] - The management is focused on maintaining a diversified portfolio to capture growth opportunities while managing risks [45][46] Q&A Session Summary Question: What steps are being implemented to improve portfolio performance? - The management acknowledged the underperformance and emphasized a disciplined approach that has been in place for two and a half years, which has shown some outperformance [56][60] Question: Why is the company still invested in CSL despite its impact on performance? - The management highlighted CSL's strong EPS growth and potential for future growth as reasons for maintaining the investment [63][65] Question: Will the company consider buying back more shares? - The management indicated that buying back shares, especially to neutralize the DRP shares, makes sense but decisions will be made by the board [69] Question: What is the outlook for Woolworths? - The management expressed a cautious optimism about Woolworths' ability to achieve reasonable EPS growth, maintaining a hold on the stock for now [92] Question: How does the company view its investment in Transurban? - The management believes Transurban has a dominant market position and expects distribution growth, making it a solid investment [70][72] Question: What is the company's stance on high growth stocks in the current market? - The management prefers to invest in high-quality growth companies, even if they appear overpriced, as they believe earnings can eventually catch up [108]