AUI - Australian United Investment Company

[Dona Ferentes]

Bought these and ARG as my Sit on the Bus holdings.

AUI currently about 9% under NTA and ARG about 12% under (Most other LIC's are also under NTA)

ARG has been buying back shares on a daily basis for a few weeks, and I note AFI has just resumed similar actions

 

[Bellcose]

ARG has been buying back shares on a daily basis for a few weeks, and I note AFI has just resumed similar actions

Yes. A number of the "old style" LIC's have been buying back shares due to the difference between share price and NTA. ARG over the years has gradually been reducing its holdings in other LICs. It transacted over $10m with AUI at one point.

And by the way, AUI's share price did not drop due to its holding of CSL. The poster who claimed that does not comprehend the nature of these LICs.

 

[divs4ever]

Yes. A number of the "old style" LIC's have been buying back shares due to the difference between share price and NTA. ARG over the years has gradually been reducing its holdings in other LICs. It transacted over $10m with AUI at one point.

And by the way, AUI's share price did not drop due to its holding of CSL. The poster who claimed that does not comprehend the nature of these LICs.

well it happened on the same day , and CSL was a top 3 holding at the time

what i do know is my order was filled @ $9.83 despite being entered at $9.90 , so if not CSL news , an act of God, perhaps ?

 

[Bellcose]

Big deal not. CSL is DUI's (AUI's sibling) top holding, which it has been for a number of years, so what occurred? CSL has been ARG's number three holding for ages and what happened?

Never confabulate coincidence aka waking up in the morning with a random first thought, with causation unless you have detailed evidence to actually prove your contention.

 

[divs4ever]

well the date of the buy was February 12 , 2024

members are free to ponder whether the market preempted the CSL results released the day after on the 13th , or on

CSL Announces Top-line Results from the Phase 3 AEGIS-II Trial Evaluating the Efficacy and Safety of CSL112 released that day

CSL dropped from $305 to $280 in the same short period

meanwhile at AUI

Top 25 Investments
31 January 2024
Company Market Value$’000 % of Total Investments
Commonwealth Bank of Australia 152,789 9.7%
CSL Ltd 128,223 8.2%
BHP Group Ltd 127,629 8.1%
Rio Tinto Ltd 99,690 6.4%
Wesfarmers Ltd 81,438 5.2%
Woodside Energy Group Ltd 74,543 4.7%
Transurban Group 74,305 4.7%
Diversified United Investment Ltd 72,144 4.6%
ANZ Group Holdings Ltd 72,080 4.6%
CAR Group Ltd 54,467 3.5%
Westpac Banking Corporation 53,196 3.4%
Resmed Inc. 49,640 3.2%
Aristocrat Leisure Ltd 44,500 2.8%
National Australia Bank 37,490 2.4%
Woolworths Group Ltd 36,010 2.3%
Washington H Soul Pattinson & Co Ltd 34,400 2.2%
Worley Ltd 29,640 1.9%
Origin Energy Ltd 25,560 1.6%
Brambles Ltd 23,790 1.5%
Reece Ltd 22,780 1.5%
Coles Group Ltd 22,274 1.4%
Ramsay Health Care Ltd 20,492 1.3%
Seek Ltd 20,360 1.3%
Northern Star Resources Ltd 19,725 1.3%
Challenger Ltd 19,650 1.2%

Top 25 Investments
29 February 2024
Company Market Value$’000 % of Total Investments
Commonwealth Bank of Australia 151,333 9.6%
BHP Group Ltd 118,611 7.5%
CSL Ltd 114,496 7.3%
Wesfarmers Ltd 93,296 5.9%
Rio Tinto Ltd 92,835 5.9%
ANZ Group Holdings Ltd 75,393 4.8%
Transurban Group 74,470 4.7%
Diversified United Investment Ltd 70,560 4.5%
Woodside Energy Group Ltd 69,828 4.4%
Westpac Banking Corporation 57,970 3.7%
CAR Group Ltd 55,140 3.5%
Resmed Inc. 45,322 2.9%
Aristocrat Leisure Ltd 41,967 2.7%
National Australia Bank 38,916 2.5%
Washington H Soul Pattinson & Co Ltd 34,540 2.2%
Worley Ltd 33,460 2.1%
Woolworths Ltd 32,620 2.1%
Origin Energy Ltd 26,970 1.7%
Reece Ltd 26,870 1.7%
Brambles Ltd 24,489 1.5%
Coles Group Ltd 23,660 1.5%
Ramsay Health Care Ltd 21,964 1.4%
Challenger Ltd 20,190 1.3%
NextDC Ltd 19,856 1.3%
Macquarie Group Ltd 19,481 1.2%

and the half yearly results were released on February 14th and the dividend ( corrected later ) on the same day

 

[Bellcose]

February 12 , 2024

DUI went up and both AUI & ARG did essentially bugger all. Fun fact about buying. The buyer doesn't know who is selling, why or whether it's the seller's last dollar nor does the buyer care.

 

[divs4ever]

typical Monday sell-down ?

maybe someone needed the cash to treat their wife on St. Valentines Day

 

[Dona Ferentes]

it's not really a stock market, but rather a market for stocks.

 

[monkton]

AUI is a favourite holding of mine. Set up as a charity, it's focus really is on long term income to provide for this with the Potter foundation being the largest holder. as retrirement income is my focus, it's good enough for me.Can nearly always buy at a good discount too.

 

[Bellcose]

AUI is a favourite holding of mine. Set up as a charity, it's focus really is on long term income to provide for this with the Potter foundation being the largest holder. as retrirement income is my focus, it's good enough for me.Can nearly always buy at a good discount too.

I understand your approach there @monkton. AUI's holdings were too tight for me when I looked at it ages ago. It only holds around 30 companies I believe. I already held ARG so gave AUI a miss. AUI is a steady dividend payer with the management having a conservative approach and not into flashiness.

 

[monkton]

I understand your approach there @monkton. AUI's holdings were too tight for me when I looked at it ages ago. It only holds around 30 companies I believe. I already held ARG so gave AUI a miss. AUI is a steady dividend payer with the management having a conservative approach and not into flashiness.

Think AUI holds 40-50 companies or did at one time. I hold ARG as well, but it's a bit smaller holding as AUI usually had a bigger discount, not the case at present though.

 

[Dona Ferentes]

Think AUI holds 40-50 companies or did at one time. I hold ARG as well, but it's a bit smaller holding as AUI usually had a bigger discount, not the case at present though.

from AGM (so, end June)

" The diversified portfolio comprises 35 Australian companies across multiple sectors "

 

[Bellcose]

Think AUI holds 40-50 companies or did at one time. I hold ARG as well, but it's a bit smaller holding as AUI usually had a bigger discount, not the case at present though.

As you probably know, ARG has held AUI for a number of years but has been progressively selling for a while. If I remember correctly it did a comparatively large tranche into the AUI buy-back. At at end June 2024, it held close to 9m shares in AUI down from around 11m the previous year. Its being doing the same with its holding in DUI. Neither of the holdings go anywhere close to the Ian Potter Foundation however.

 

[monkton]

Oops, pays to read the current AGM

 

[monkton]

As you probably know, ARG has held AUI for a number of years but has been progressively selling for a while. If I remember correctly it did a comparatively large tranche into the AUI buy-back. At at end June 2024, it held close to 9m shares in AUI down from around 11m the previous year. Its being doing the same with its holding in DUI. Neither of the holdings go anywhere close to the Ian Potter Foundation however.

A few years ago while at an ARG investor conference, I asked one of the ARG 'team why there were cross holdings amongst the old scholl Lic's.
Was told that 'back in the mists of time' there was talk of an amalgamation of them, thus the holdings. Obviously this didn't eventuate, but for many reasons these holdings could only be sold over time due to cgt, effect on price of large numbers being sold etc.
A good reason to hold ARG is that they hold these conferences & feed you , AUI does not .

 

[divs4ever]

of the conservative style of LICs , i hold a much larger holding of CAM ( which did an adventurous detour into international shares .. and back out of them ) , and smaller holdings in BKI and AUI , my holdings are largely guided by entry points
( for instance i kept on missing MLT before it was taken over )

i also have holdings in several higher risk , higher activity LICs who use styles i am not good at ( and are comparatively successful at them )

 

[Bellcose]

A few years ago while at an ARG investor conference, I asked one of the ARG 'team why there were cross holdings amongst the old scholl Lic's.
Was told that 'back in the mists of time' there was talk of an amalgamation of them, thus the holdings. Obviously this didn't eventuate, but for many reasons these holdings could only be sold over time due to cgt, effect on price of large numbers being sold etc.
A good reason to hold ARG is that they hold these conferences & feed you , AUI does not .

Interesting background there @monkton. Thank you for the info.

Probably ARG holds shareholder meetings due to the number of shareholders whereas with AUI they are probably in regular contact with the major shareholder and as for the rest.................. Nah, likely to have very low turnover in the holdings so not much to say to justifty a road show.

Out of curiosity, I had a look at the latest annual report from AUI. Active it really isn't.

 

[divs4ever]

Interesting background there @monkton. Thank you for the info.

Probably ARG holds shareholder meetings due to the number of shareholders whereas with AUI they are probably in regular contact with the major shareholder and as for the rest.................. Nah, likely to have very low turnover in the holdings so not much to say to justifty a road show.

Out of curiosity, I had a look at the latest annual report from AUI. Active it really isn't.


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and i am quite comfortable with that strategy at AUI , if i want a more aggressive approach i add extra WAX , SEC , and SNC

i don't expect the investment managers to be wizards at everything , just good at the strategy they are using

i suspect there is plenty of cross-talk among investment staff , at company roadshows between various LICs ( staff )

 

[divs4ever]

Net Tangible Asset Backing 31 May 2025

i hold AUI

i am currently up $1 a share here , but even then the div. yield is less than exciting

but will probably still pay some divs when other companies will feel it prudent to hold back some cash