‘Recommended’ rating reaffirmed for Pengana International Equities

Independent Investment Research (IIR) has reaffirmed its Recommended rating for Pengana International Equities Limited (ASX: PIA) after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked. This compares to the total dividends of 5 cents per share in FY20.  The Board has confirmed that, in the absence of unforeseen circumstances, it expects to reset the target quarterly dividend to 1.35 cents per share, franked to the maximum extent possible. This represents an annual dividend of 5.4 cents per share.  PIA has profit reserves to sustain an annual dividend of 5.4 cents per share for 11 years and sufficient franking credits to fully frank the dividend through to FY24, even if no further tax is paid.

Australian Foundation Investment announces FY21 results and maintains final dividend

Last month, Australian Foundation Investment (ASX: AFI) released its FY21 results. The Company reported a decline in total revenue of 0.6% to $262.8m. Dividends and distributions generated by the portfolio was largely unchanged from the pcp, with the decline in revenue driven primarily by a decline in interest income from deposits. Before allowing for the final dividend, the pre-tax NTA per share of the Company increased to $7.45 per share at 30 June 2021. This is a 25% increase on the pre-tax NTA as at 30 June 2020. The Company declared a final fully franked dividend of 14 cents per share, in line with the FY20 final dividend. This takes the full year dividend to 24 cents per share, fully franked, the same as the FY20 full year dividend.

The Company has a DRP and a DSSP available, the price of which will be set at a 3.5% discount to the VWAP of the Company’s share price over the five-trading days after the shares trade ex-dividend. During the period, the Company dipped its toe into international equities, investing a small amount of capital (~0.5% of the portfolio) into a portfolio of international equities. The international portfolio consists of companies that the investment team views to be high-quality with a strong competitive advantage, good growth potential and across a broad range of industries. The rationale for the investment in international equities is a precursor to potentially establishing a low-cost international LIC in future.

Mirrabooka Investments maintains final dividend and declares special dividend

Mirrabooka Investments (ASX: MIR) announced the payment of a final dividend for FY21 of 6.5 cents per share, fully franked, in line with the previous final dividend. The Company also announced the payment of a special dividend of 2 cents per share, fully franked, in addition to the final dividend, taking the total dividends for FY21 to 12 cents per share. The entire dividend (final and special) will be sourced from capital gains, on which the Company has or will pay tax. The amount of the pre-tax attributable gain (“LIC capital gain”) attached to the dividend is 12.14 cents. The dividend will trade ex-dividend from 28 July 2021 and be paid on 17 August 2021.

Contango Income Generator changes name to WCM Global Long Short

Contango Income Generator Limited (ASX: CIE) announced that shareholders voted in favour of changing the name of the company to WCM Global Long Short Limited. The Company will not trade under the new code WLS.

Magellan High Conviction Trust to restructure as an active ETF

Magellan High Conviction Trust (ASX: MHH) has announced its intention to transition from a closed-ended LIT to an Exchange Traded Managed Fund (ETMF), also known as an Active ETF. If approved at a unitholder meeting to be held in September 2021, the ETMF will employ the Single Unit (dual registry) structure that allows for investors to buy and sell units in the Fund either directly with the Responsible Entity (RE) or on-market through the relevant stock exchange.

Qualitas Real Estate Income Fund raises a further $12.7m

Qualitas Real Estate Income Fund (ASX: QRI) has raised $12.7m through a Unit Purchase Plan which closed on 29 June 2021. Units were issued at a price of $1.60 per unit. QRI units were trading at $1.62 per unit at the close of the offer. The new capital raised will be invested in accordance with QRI’s investment strategy. The new units commenced trading on 7 July 2021 and will rank equally with existing units. With the completion of the Unit Purchase Plan, QRI has raised $66.7m in CY2021, through placements to new and existing unitholders.