MIR - Mirrabooka Investments

[Bellcose]

Nope. Resources and gold do not fit with the long term objective.

"Mirrabooka invests in 50 to 70 companies outside of the S&P/ASX 50 Leaders Index and across a range of industries, that are selected for their ability to perform through economic cycles and generate returns over the long term."

 

[finicky]

Might be a good counter-weight for me as I'm overweight so to speak in the other direction.

 

[Dona Ferentes]

"Mirrabooka invests in 50 to 70 companies outside of the S&P/ASX 50 Leaders Index and across a range of industries, that are selected for their ability to perform through economic cycles and generate returns over the long term."

and seems to achieve something along those lines

 

[Bellcose]

Might be a good counter-weight for me as I'm overweight so to speak in the other direction.

An investor can get some resource exposure through the other LICs in the corral such as AFI, DJW and AMH I understand.

If interested, here is a link to Mirrabooka's approach which is on its website.

Behind Mirrabooka's investment approach - answering shareholder questions that matter most to you today

Find the latest news and updates from AFIC. Read now.

www.mirra.com.au

 

[divs4ever]

Not a single resource or gold stock.

Not Held

that isn't always a bad thing , WHF seems to survive OK with that strategy

it will tend to differentiate itself from index ETFs

 

[Bellcose]

Got curious and had a peak at the half-year accounts (31 Dec 2024.)

For the last few years MIR's net profit has been transferred to Retained Profits. At the moment that is $59.6m.

I suspect the 6.5c ff to be paid will come from the Realised Capital Gain reserve which stands at $60.3m.

Dividends paid from Realised CG in the last half was $17.2m. So even on the expanded number of shares, it should be well covered. Probably no special dividend though but I wouldn't dismiss the possibility entirely.

 

[Dona Ferentes]

Got curious and had a peak at the half-year accounts (31 Dec 2024.)

For the last few years MIR's net profit has been transferred to Retained Profits. At the moment that is $59.6m.

I suspect the 6.5c ff to be paid will come from the Realised Capital Gain reserve which stands at $60.3m.

Dividends paid from Realised CG in the last half was $17.2m. So even on the expanded number of shares, it should be well covered. Probably no special dividend though but I wouldn't dismiss the possibility entirely.

one held asset just got taken over ... DropSuite DSE ... so, a bit more for the realised CG account

 

[Bellcose]

First time I can recall this happening. Oversubscribed. Total take up at 119%. Scale back will apply.

 

[divs4ever]

First time I can recall this happening. Oversubscribed. Total take up at 119%. Scale back will apply.

View attachment 201007

over-subscribed happens more often than you would think in ( relatively ) conservative LICs , it seems happy long-term holders are very content to soak up any excess , interesting that management decided to scale-back the applications ( not completely rare either )

it looks like they are trying to right-size their investing capacity

it might be worthwhile to watch where they deploy the funds raised ( if you are a longer term investor )

 

[Dona Ferentes]

I don't like uneven holdings!

 

[Bellcose]

over-subscribed happens more often than you would think in ( relatively ) conservative LICs

Provide the evidence to back up your claim.

I have held MIR since 2003 and have participated in every SPP and Rights Issue since then. None have been oversubscribed to my recollection. Happy to be proved wrong.

 

[Dona Ferentes]

someone who thinks?

 

[Ferret]

I don't like uneven holdings!

Mea culpa. I was rather greedy with my application.

 

[Dona Ferentes]

Mea culpa. I was rather greedy with my application.

it will be interesting to see how they allocate. I've seen many a variation over the years; some rewarded for being on the books longterm , sometimes a proportional allocation, sometimes a flat number across the board.

@Ferret is the outlier?

 

[monkton]

As a result of the excess demand under the Top-Up Facility and the resulting oversubscription,
to ensure a fair and equitable allocation outcome, the Mirrabooka Board has determined to
scale back some applications under the Top-Up Facility having regard to their existing
shareholding. Refunds in respect of scaled-back applications under the Top-Up Facility will be
dispatched from 10 June 2025

posted after closing yesterday.

 

[Bellcose]

The numbers when they are announced could make for interesting reading @monkton. In round terms, initially 28m shares (14m 1 for 7 Entitlement/14m Top-up shares).

The shares for those who did not apply or partially applied under the 1 for 7, would have been added to the top-up.

Obviously I have no idea how the scale back will be applied but I'll guess some preference could be given to smaller shareholders who applied for their full allocation and a bit more to round out the numbers. Usually, somewhere between 30% to 35% of all shareholders apply under these offers.

I only applied for my entitlement as I hold a lot of MIR and it would have meant any additional funds would have been even a greater call into my mental floor for funds on hand.

 

[monkton]

The numbers when they are announced could make for interesting reading @monkton. In round terms, initially 28m shares (14m 1 for 7 Entitlement/14m Top-up shares).

The shares for those who did not apply or partially applied under the 1 for 7, would have been added to the top-up.

Obviously I have no idea how the scale back will be applied but I'll guess some preference could be given to smaller shareholders who applied for their full allocation and a bit more to round out the numbers. Usually, somewhere between 30% to 35% of all shareholders apply under these offers.

I only applied for my entitlement as I hold a lot of MIR and it would have meant any additional funds would have been even a greater call into my mental floor for funds on hand.

scale back some applications under the Top-Up Facility

Yes, noting they said SOME would be scaled back, I wasn't too greedy (Ihope)

 

[Ferret]

A few rough calcs:

On 31 May MIR had 194.709M shares on issue and a NTA of $3.35.
The rights and top up have added 27.82M shares at $3.06
Total shares on issue now 222.529M
New NTA = (194.709x3.35 + 27.82x3.06)/222.529 = $3.314

So diluted just over 1%. No big deal and still trading at a discount to this.

Of course, the NTA will probably have changed during this week, but it will be interesting to see what the official NTA is next Tuesday.

 

[Bellcose]

Of course, the NTA will probably have changed during this week, but it will be interesting to see what the official NTA is next Tuesday.

The additional funds will boost FUM to just under $750m. Could have the effect of reducing the MER which is currently 0.56%.

 

[Ferret]

Could have the effect of reducing the MER which is currently 0.56%.

Yes, the letter from the Chairman covering the Entitlement Offer Booklet noted this as part of the rationale for the offer.