Djerriwarrh Investments H1 2026 Earnings Call - Maintaining Enhanced Dividend Yield Amid Market Challenges

: I would now like to hand the presentation over to Mr. Mark Freeman, Managing Director of Djerriwarrh Investments. Thank you. Please go ahead.

Mark Freeman, CEO and Managing Director, Djerriwarrh Investments: Good afternoon, everyone. Yes, I’m Mark Freeman, the CEO and Managing Director of Djerriwarrh Investments, and welcome to this half-year result briefing. I’d like to begin by acknowledging the traditional owners and custodians from all the lands we are gathered on today and pay my respects to their elders past, present, and emerging. Joining me today on this webinar I have Brett McNeill, the Portfolio Manager, Olga Kosciuczyk, Assistant Portfolio Manager, Andrew Porter, our CFO, Matthew Rowe, our Company Secretary, Jeff Driver, our General Manager of Business Development, and Suzanne Harding, our Business Development Manager. This briefing is based on the material available on the Company’s website. Presentation slides will change automatically via the webcast. Finally, please note, following the presentation there will be time for questions and answers. You can ask a question via the webcast using the tab at the bottom of the screen.

I’ll now turn to chart two, which is our usual disclaimer, just to say we’re here to talk about the Company and we’re not giving any advice as such. So at that point, I’ll pass over to Brett and Olga to run through the presentation.

Brett McNeill, Portfolio Manager, Djerriwarrh Investments: Thank you, Mark. Good afternoon, everyone. It’s great to be presenting Djerriwarrh’s first half-financial results today. Slide three shows the agenda for today’s presentation. I’ll begin by giving an overview and a recap of Djerriwarrh’s objectives. Our CFO, Andrew Porter, will go through the half-year results in summary. I’ll then expand on that by looking at the results in a bit more detail. And then Olga and I will go through a portfolio update covering both stocks and options, including recent changes. And then we’ll conclude with some outlook comments before taking questions. So some of the key points of Djerriwarrh are listed on slide five. Djerriwarrh is one of the largest income-focused listed investment companies, so listed on the ASX. We’ve got a long-term track record, having been established in 1989 and listed on the ASX over 30 years ago in 1995.

This listing means that shareholders get the benefit of full transparency associated with being a listed investment company, which brings with it high governance standards, including having an independent board of directors. We’ve got an investor-friendly, clean structure, meaning that Djerriwarrh shareholders own the management rights to the company. There’s no fee leakage to third parties, and there’s no additional fees such as any performance fees. Djerriwarrh is part of our broader group of listed investment companies. This also includes Australian Foundation Investment Company, AFIC, along with AMCIL and Mirrabooka. This means we’re able to support a broader research approach and have the scale of operations, which helps keep costs low.

Looking at our investment objectives on slide six, Jewelwarra’s primary objective is to deliver an enhanced level of fully franked income, and that’s produced in the form of a dividend yield that should be higher than what is being produced by the broader share market. So we show the results of this on the left-hand side. And to the 31st of December 2025, based on Jewelwarra’s dividends over the last 12 months, which have totaled AUD 0.155 per share, this equates to a dividend yield of 6.6%, the dark blue bar there. And that 6.6% is including franking credits. And that’s measured, and the yield’s measured on our net asset backing. The equivalent yield on the broader share market, the ASX 200, also including franking credits, is 4%. That’s the orange bar there.

Jewelwarra’s enhanced yield, which is our primary objective, is the difference between the two. And so that was 2.6% as of the 31st of December 2025, which we think is a very attractive level. And importantly, a sustainable enhanced yield given it continues to be fully covered by our net operating profit. We also show on the left-hand chart the equivalent dividend yield, but based on Jewelwarra’s share price at the 31st of December 2025. And that dividend yield was even higher at 7.1%. And then for comparative purposes, we list the 12-month term deposit rate, which sits at around 4.1%. So overall, a very strong and attractive enhanced yield. The right-hand side of slide six covers our secondary objective, which is to also produce attractive total returns over time, which should be some capital growth alongside the strong income.

The results of this are shown in the chart on the right-hand side. If we look at one-year performance, our one-year total return of 5.5%, the light blue bar, is behind the share market’s total return of 11.5%, the green bar. We’ll give some more detail on the reasons for this gap later in the presentation. As we can see over multiple time periods, that one-year underperformance has fed through into our longer-term numbers. If we pick the five-year number, whilst Jewelwarra’s total return, 8.6% per annum, including franking credits, is good in an absolute sense, it is also behind the broader share market’s total return of 11.3%, also including franking. Moving on to slide seven, this looks at things from a share price perspective.

We show the relationship between Jewelwarra’s share price versus the net tangible asset backing of our portfolio. At the 31st of December 2025, Jewelwarra’s net tangible asset backing was AUD 3.35 per share, whereas the share price was about 7% lower at AUD 3.12. We continue to see net tangible asset backing as representing around fair value for the shares, particularly given some of the features of Jewelwarra, such as a shareholder-friendly structure, low cost, and very good scale. Both management and the board continue to focus on ways to close the share price discount, including measures such as we’re now moving to quarterly dividend payments rather than half-yearly, which we announced at our annual general meeting last September. We’ve been doing a lot more marketing and promotion to both financial advisors and retail shareholders.

And we’ve also, again, during this period, been buying back shares on market to effectively neutralize the shares that we issued under the dividend reinvestment plan. But despite all that, for now, based on the end-of-year metrics, investors are able to buy Jewelwarra shares at about a 7% discount to the net tangible asset backing, or to think of it another way, are able to buy AUD 100 worth of assets for about AUD 93. So with that introduction, I’ll now pass to Andrew Porter, our CFO, and he’s going to give a rundown of the key features of our half-year results.

Andrew Porter, CFO, Djerriwarrh Investments: Thank you, Brett. And good afternoon, ladies and gentlemen. So the four boxes that you’ll see on the screen, they are what many shareholders will be used to. The net operating result, now that is the profit excluding the impact of the open options position, and is what we would consider the key measure of our profit in that that is what the board based the dividend upon. And that was AUD 19.7 million down from AUD 21 million. And Brett and Olga will go through some of the components of that later, but suffice to say, it is largely due to a decline in the dividends that we’ve received over the six-month period compared with this time last year. And Brett and Olga said we’ll have the figures later on. The dividend was maintained at AUD 0.0725.

The net operating result per share was just under $0.075, so the board elected to keep the dividend constant at $0.0725 per share. As Brett has said, I would remind shareholders, this is the last six-monthly dividend that Jewelwarra is declaring. From now on, we will be moving to a quarterly dividend, which does mean that shareholders will receive an extra quarter’s worth of dividend in this financial year. So be aware of that when it comes to doing your tax returns. Top right-hand corner, management expense ratio, 0.38%. That’s the cost of running the company over the total portfolio value. Last year, 0.46% was unusually high. The contribution from Jewelwarra’s associated entity, AICS, was a lot lower this time 12 months ago. And the 0.38%, $0.38 for every $100 invested, is more in line with what we’ve had in prior years.

So for instance, in 2023, it was 0.40%, and in 2022, it was 0.36%. The dividend yield Brett has been through, 6.6% based on the portfolio, and 7.1%, as Brett said, based on the share price. And with that, Brett, I’ll hand back to you to look at those profit figures in more detail.

Brett McNeill, Portfolio Manager, Djerriwarrh Investments: Okay. Thanks, Andrew. So if we turn to slide 11, this is where we present a summarized version of our profit and loss statement. And we do this to show really how we produced the AUD 19.7 million profit for this half-year period that Andrew just talked about, but also then how it flows through to the AUD 0.0725 dividend per share that we’ve declared today. So the two key drivers of our net operating profit are the dividend and distribution income, and that was down 8% to AUD 16.6 million, along with our option income, which was flat for this period at AUD 7.5 million. And we’ll go into some more detail on both of those factors in the next two slides. But for now, continuing to move down the rest of the table, finance costs were up at AUD 0.9 million, and administration costs down to AUD 1.8 million.

That took the operating result before tax to AUD 22.2 million. And then, with income tax expense of AUD 2.5 million, the net operating result that we produced of AUD 19.7 million. You can see down 6% versus the prior period from the year before. On a per-share basis, the AUD 19.7 million becomes AUD 0.0749 per share. And as we can see, that more than covers the dividend that we’ve declared for this period of AUD 0.0725. So looking at those two key drivers of our operating profit in some more detail now, we cover the dividend and distribution income on slide 12. As a reminder, this is the income that we receive from the companies that we own in the investment portfolio. We show the five-year trend in this metric on the left-hand side.

On the right-hand side, we show the same metric that calculated as a yield on our portfolio value. That’s the green bars. We compare it to the equivalent yield on the broader share market, the blue bars. Both of these, though, are before franking credits. A couple of takeaways from these two charts. We can see that our dividend and distribution income has declined over the last two half-year periods. But as a yield on portfolio value, it’s still been above the market over both of these periods. Some of the key drivers we see behind these movements. Firstly, overall dividends from the broader share market have declined over the last six months, especially from large companies, resource stocks like BHP and Rio Tinto.

The other factor specific to us is really around our portfolio repositioning, particularly from the option exercises that we’ve had in the banks, but also combined with we’ve had a defensively positioned portfolio over this time period, which has included holding more cash than usual. And that was definitely another factor. So from here, our expectation remains that our portfolio’s dividend yield, so the dividend income we receive from companies we invest in, will be around the level of the market being the ASX 200 index. Looking at the second key driver and our option income, which is a big factor behind our ability to produce the enhanced yield, slide 13 shows similar analysis. The option income was flat for this period at $7.5 million.

On a yield basis, so divided by our ending period portfolio value, that was an option income yield of about 1.7%, same as the year before. Our view remains from here that an option income yield around this level, 1.7%, is a reasonable expectation for future periods. As always, it depends a lot on market conditions, particularly when it comes to the writing of predominantly call options. That covers the financial result. We’ll turn now to the portfolio update. I’ll start by giving some more detail on our recent performance, like I touched on at the start. Then Olga will discuss our option activity, the major portfolio changes we’ve made, and summarize the key portfolio metrics. What slide 15 shows is the key drivers of our portfolio underperformance over the last 12 months.

So this is where the portfolio total return has been positive, but it’s been 6% behind the benchmark’s total return. And we’ve grouped the reasons for this portfolio underperformance into three buckets. First is some of the large companies that we’ve owned and their performance. So you can see CSL down 37% on a total return basis for calendar year 2025. A big holding for us. It’s a former market darling. It’s suffered a huge derating following a very poor 2025 profit result. It’s been a very frustrating investment for us recently, and there’s still short-term pressures on the business. But our view at the moment is we think the long-term growth potential from their core products is still there, and hence we intend to maintain a good investment in the stock at this stage. ASX was down 18% for 2025.

They’ve continued to suffer from higher expenses since the botched tech upgrade to the clearing and settlement system a number of years ago. There’s a lot of regulatory pressure on the business, and that’s holding back profit and dividend growth at ASX in the near term. But longer term, we still want to own the dominant exchange operator that earns good returns and should be able to get back to producing good dividend and profit growth at a point in time. And for now, the dividend yield that we’re earning on the stock is attractive enough to justify our holding. So there are two key large companies that have dragged on performance. There’s three small-cap companies that we own that have fallen over the last year that have also dragged on performance, being Equity Trustees, IDP Education, and ARB.

So just running through each of these quickly, Equity Trustees was down 23% on a total return basis for the year. EQT is a solid business that operates in an attractive industry, but they’ve got the issue now of needing to resolve the ASIC action related to the failure of the First Guardian super products. And that needs to be resolved before we can get more confidence about their balance sheet position and dividend growth potential, which we’ve always owned the stock for. And until that happens, we are reducing the portfolio position size in this company. For IDP Education, historically, it’s been a really strong performer, but it’s recently suffered from cuts to international student numbers in its key markets. And this has significantly reduced their profit.

We bought the stock too early in hindsight, but for now, we intend to hold our position as long as we retain confidence in management and the balance sheet. That’ll obviously be a focus in the upcoming reporting season. In the case of Four Wheel Drive Accessory Parts Company ARB, we think the business outlook and the balance sheet is as strong as ever. Nonetheless, it’s been derated by the market. As a result of this, we’ve been back buying stock in recent times and adding to the position. The third bucket is really around gold companies that we haven’t owned. Gold’s been one of the biggest stories in markets over the last years. The gold price has almost doubled. Pleasingly for Djerriwarrh, we bought a gold stock two years ago, and we’ve owned Newmont during this time.

That is up 100 or was up 156% over the past year alone. There’s also a lot of other gold stocks in the ASX 200 index that we didn’t own that have been very strong performers also. That’s included Evolution Mining up 170% and Northern Star up 78%. By not owning all the other stocks as well, that has dragged on our performance. Hopefully that gives some insights into why our 12-month total return has been below the benchmark’s total return. For some more detail on the portfolio, particularly on options and the stocks that we own, I’ll now pass to Olga.

Olga Kosciuczyk, Assistant Portfolio Manager, Djerriwarrh Investments: Thank you, Brett, and good afternoon, everyone. Our main investment objective is to pay our shareholders an enhanced dividend yield to achieve that goal. We generate income by writing call options against select portfolio holdings. On this slide, we show the performance of the market as defined by our benchmark, the ASX 200 index, overlaid with a top-down view of our portfolio’s call option coverage. We started the financial year 2026 with call option coverage of 32% at the bottom end of our normal range of 30%-40%. Our option coverage then briefly decreased to 28% in mid-July following option exercises in Region Group, Telstra, Goodman Group, NAB, and Macquarie Group. We continued to increase our portfolio’s call option coverage in response to the rising market until it peaked at 48% in late October.

We maintained high call option coverage until mid-December, which saw us generate a good level of option income, but it reduced our exposure to the strongly rising share market. We finished the calendar year with call option coverage of 37% following significant option exercises we had in December. On slide 17, we show our key recent transaction in the last six months. We had significant option exercise across banks, ANZ, NAB, and Westpac, as well as Rio Tinto, Telstra, and Region Group. We also exited the position in PEXA Group and Domino’s Pizza, both of which have been disappointing investments for us. During the period, we invested almost AUD 240 million in the market as we saw opportunities to buy high-quality companies at attractive valuations. This included increasing our holdings in high-income companies, including Telstra, Woolworths, Region Group, and Transurban.

We also saw opportunities to buy high-quality growth companies, REA Group, and ResMed during the period. ResMed is the world’s leading manufacturer of devices and masks used in the treatment of obstructive sleep apnea. This common sleep disorder affects over 1 billion people globally. The markets are concerned that the uptake of weight loss drugs will negatively impact the addressable market for ResMed. However, early data analysis shows that patients on weight loss drugs are more likely to initiate and continue sleep apnea therapy. The company has an excellent track record of earnings growth, and we believe its leading position in large underpenetrated markets means their long-term opportunity remains significant. We see ResMed as one of our portfolio’s highest quality growth companies. The company also pays modest, albeit strongly growing dividends. Finally, we added one new holding during the period, Sigma Healthcare.

Sigma, following the merger with Chemist Warehouse, is one of the highest quality retailers in Australia. The company has a strong track record of execution with double-digit revenue growth over the past two decades. Sigma has significant growth opportunities in Australia and offshore as they continue to roll out stores and win market share in attractive healthcare and beauty sectors. We see it as a great addition to our diversified portfolio that primarily offers an attractive level of capital growth. On this slide, we show a snapshot of our portfolio, starting with some key metrics on the left-hand side at the end of December. We can see that the portfolio’s value is AUD 928 million invested across 43 stocks. Our call option is at 37%, and we currently have no put option exposure. This all adds up to AUD 3.35 of net tangible assets.

On the right-hand side, we show the top 20 holdings in Jewelwarra. We have a diversified portfolio of high-quality companies across different sectors with the appropriate balance of income and growth. We continue to be defensively positioned with significant capacity to invest should we see opportunities in the markets, and with that, I will pass to Brett.

: Thanks, Olga. So we make some outlook comments on page 20. In terms of markets, it was another strong year in 2025, and we’ve now got the situation where the market, the S&P/ASX 200, currently trades near its all-time highs. And in this context, it looks moderately expensive to us, especially when we look at long-term valuation metrics such as price-to-earnings ratio and dividend yield. So overall, from a top-down perspective, we remain defensively positioned. Notwithstanding this, though, we have recently been taking advantage of buying opportunities in selected companies that we judge to be high quality and have attractive long-term growth prospects, including, as Olga mentioned, Telstra and Woolworths, particularly for income, but also REA and ResMed more for long-term growth.

In terms of our dividend and option income, so the portfolio adjustments that we’ve made, not just in the last six months, but even in periods before that, mean that at this point, our dividend income is more reliant on companies such as the major miners, as well as industrial companies in sectors such as supermarkets and telcos for our dividend income, and as a result, we’re significantly less reliant on the major banks for our dividend income. In terms of the options portfolio, we’ve already got a good amount of option income written for second half financial year 2026, and we’ve still got flexibility and timing to write more option premium income later in this financial year, so overall, that’s well placed.

And finally, just a reminder, as we’ve mentioned, Djerriwarrh will be moving from now on to the payment of quarterly dividends rather than half-yearly dividends, and the first of these dividend payments is expected to be made in May 2026. So overall, we believe we’ve got the right settings to enable Djerriwarrh to keep delivering on its long-term objectives, primarily enhanced yield, but also attractive total returns. And I’ll now pass to Jeff, who’ll conduct the question and answer session.

Brett McNeill, Portfolio Manager, Djerriwarrh Investments: Thanks, Brett and Olga.

: A few questions here. Just to remind you, you can ask a question via the tab on the webcast. A question about the banks. Why did you exit all the banks, and what price did you exit CBA at?

Brett McNeill, Portfolio Manager, Djerriwarrh Investments: Yep, sure. We haven’t exited all the banks, just to clarify, so we’ve got a much lower weighting in the banks than we have at certain times in the last five years. We still own ANZ, NAB, and Westpac, but we fully exited CBA. The exit in CBA happened during 2025. It was mostly as a result of option exercises from call options that we’d written against the stock, and these started from a share price as low as AUD 120 and went all the way through to when the shares got above AUD 180 when we actively sold our last remaining stake, and so that was during 2025. Since then, the share price has come back, and whilst it looks more reasonable at about AUD 156, it’s still the most expensive bank in the world.

And whilst we really rate the quality of CBA, particularly its franchise strength and scale and the management team and the board, valuation just made it too hard to hold. But we are looking at potentially our next move would be to buy back in, given it’s a company that we do want to own for the long term at the right price, given its quality. The dividend yield looks a lot better now. So we’re alive to the opportunity of buying back into CBA. And similarly with the other three. I mean, we actually have been most active in ANZ over the last 12 months when we were big buyers of the stock really 12 months ago. And it’s only recently that we’ve been exercised on some of that stock, hence the weighting’s fallen. And similarly with NAB and Westpac before then.

So we’ve got CBA has its result in February, and we’ll go ex-dividend just after that. But the other three banks don’t go ex-dividend until May. So we’re again alive to the opportunity of reinvesting back into the major banks before the dividend payments if we get the chance.

: Thanks, Brett. So a related question. Will the move to the miners, supermarkets, and Telstra in the portfolio generate dividends more than that would have been available in the banks?

Brett McNeill, Portfolio Manager, Djerriwarrh Investments: Yeah, it’s a great topic because that’s essentially one of the trade-offs we have with repositioning the portfolio. So we can get exercised in stocks like the banks like we have that are good dividend payers, but we’ve got to find a home for that money that’ll generate an equivalent yield. So I would say overall, yes, we think the investments in the miners, the supermarkets, and the telcos can broadly compensate for the loss of income in the banks, but we might be able to benefit from both, particularly as we’re invested in those companies for this reporting season and if we get the chance to buy back into the banks, particularly prior to May. But that’s, yeah, essentially the trade-off.

In doing that, we’re looking not just for the dividend income for its own sake, but the quality of the portfolio and buying at a reasonable valuation where we think we can get attractive total returns.

: So this question really is about the trade-offs within option strategy versus capital. If you had not exited some of the stocks due to the option strategy, could we have made more capital or portfolio growth that could have been realized via exiting at a higher price? An example of this is REA.

Brett McNeill, Portfolio Manager, Djerriwarrh Investments: Yeah, definitely. That’s essentially the trade-off with what we’re trying to do, so there is a trade-off between income and growth with our strategy, and we’re looking to provide that enhanced yield, so it’s more getting more short-term income yield, a higher dividend yield, but at the expense of some capital growth over the long term, so there’s definitely a trade-off there because of the strategies that we employ, especially options. There’s never any such thing as a free lunch, so you get the higher short-term income, but it will come at the cost of some long-term capital growth, and getting the right balance in that trade-off is one of the key things that we need to get right in managing the portfolio.

In the case of REA, we have been exercised in recent times, so we earn less of it today, but we certainly benefited from a large amount of buying we did again about 12 months ago. And then we get that you get good option income from the stock as well. A couple of the guiding principles in how we get that balance right. You want to get the option coverage at a reasonable level. At the portfolio level, we tend to run it between 30%-40%. And Olga described how that portfolio call option coverage moved during the six-month period. In periods where we judge the market to be more expensive, we’ll tend to run the call option coverage towards or even through the higher end of that range. Hence, it’s been above 40% in the recent six-month period.

There’s been times going back a couple of years when we thought the market was really good value and cheap, and option coverage was in the mid-20s, which turned out to be good. So we can never get it perfectly right. And it’s not about calling markets perfectly and timing them because no one’s been able to consistently do that. All we’re trying to do is get it broadly right and get that balance between the income and growth about right where we can deliver a very good total return alongside strong enhanced yield.

: Thanks. There’s a question here about yield, and I’ll sort of answer this. So the question is, how do we get the 4%? It’s basically the trailing dividend yield on the ASX 200, where you only take it and we gross that up, but it’s only grossed up to 70%, which is what franking is available within the index. That’s how we get the 4% on that chart that we put up versus what Djerriwarrh generates in terms of its income yield. Does Djerriwarrh have exposure to corporate travel?

Brett McNeill, Portfolio Manager, Djerriwarrh Investments: No.

: Question here about BHP and RIO. It’s a couple of parts. What’s the reason for the 8% difference in weighting given that both stocks are quite similar in size? And the other question is, if iron ore is priced in the Chinese won, would that make a difference to how BHP and RIO are evaluated?

Brett McNeill, Portfolio Manager, Djerriwarrh Investments: Yeah, sure. So for the first part of the question, the weightings, the market caps of the two stocks are more similar than the index weightings. The index weighting for BHP is a lot higher because BHP is now listed, primary listing on the ASX, whereas Rio Tinto is still dual-listed on the London Stock Exchange. And in setting the portfolio weights, we take regard of both the absolute and the relative weightings, particularly as you’d expect given the enhanced yield thing has a reference to the index yield. So we need to take account of index weights, but we’ve had an above index or an overweight position in both BHP and Rio Tinto in recent times. The shift to the iron ore pricing, not sure. We’d have to see with that, and that’s something that we can discuss with both the companies.

But we’d note that the iron ore price has been remarkably resilient in recent times despite a lot of issues in the Chinese property market, but also a major iron ore development starting in Simandou. And yet the iron ore price has consistently held above $100 a tonne. So I think it sets them up both well for the short term.

: Excellent. Okay, just a reminder, if you want to ask a question, you can ask a question via the tab on the webcast. What are your views on the defensive utility stocks, I should say, such as APA, AGL, and Origin?

Olga Kosciuczyk, Assistant Portfolio Manager, Djerriwarrh Investments: Thanks for the question. So we used to own APN and Origin in the portfolio in the past, but we exited both holdings either via option exercises or via active sellings. All of those companies are on our watch list as they provide very attractive dividend yields, but we haven’t made quite a case to buy them back to the portfolio. They’re mostly missing the quality and sustainability of earnings. For example, for AGL and Origin, replacement of earnings coming from their coal generation is quite challenging. So we continue to review these companies, but we have not made any changes to the portfolio.

: Okay, thanks, Olga. Question about the four LICs. It may not be relevant for Jerry, but Marky, you might want to answer this question. Has there been any consideration regarding an amalgamation of any of these LICs?

Mark Freeman, CEO and Managing Director, Djerriwarrh Investments: Just to remind everyone, we do manage four LICs out of the group, but each of them has a different, I guess, purpose in terms of what they do. So I guess while we think shareholders appreciate those differences, and they are independent of each other, so the board of directors assess the strategy for each of those companies. And Jewelwarra clearly has that focus on income, and we think that suits a certain part of the market, particularly the superannuation and any vehicle that can take full value of franking credits. Obviously, AFIC have a more diverse portfolio. Mirabuka have usually that focus on small mid-cap stocks and Amso with more of a high conviction. So that’s really a question in terms of a strategy decision for each of the boards. But as I said, they each do have a differing purpose.

But like all things in business, we consider strategic directions all the time, and we take into consideration what’s happening in the market among many other factors. I guess something that’s unique to us is the fact that there are no external managers. So each of the vehicles is relatively low cost compared to other products in the market.

: Thanks, Mark. A question about what do we do with surplus cash when we have it in terms of waiting for other opportunities within the market?

We actually have that in overnight deposits with the major banks. The reason why we don’t have it in term deposits is we need to have access to that liquidity just to meet market conditions. If it suddenly becomes a good purchasing opportunity, we need to be able to access that cash quickly, and if one has a term deposit, then there is a fee and a penalty for breaking it. Having said that, at the end of the year, Jerry was actually net debt. So it was actually drawn down on debt in order to fund some of the acquisitions that Brett and Olga have been talking about.

Thank you, James. Got a question here. Has any consideration been given to the purchase of silver or silver shares as they have greatly increased in price over the past year?

Brett McNeill, Portfolio Manager, Djerriwarrh Investments: No, it hasn’t been a focus. I mean, we don’t want to be following trends after the fact so much. And so while there’s a lot of compelling reasons to buy precious metals, gold and silver today, clearly the valuations aren’t the same as what they were one and two years ago. The other one is we’d rather start by buying the right company first and then getting that type of exposure as opposed to chasing specific exposures and trying to find a company to fit the investment theme. It’s just not really our style. So while Newmont made sense from a lot of angles two years ago, we haven’t found yet a silver stock, for instance, for the right reasons that we’d want to purchase for the portfolio. But as with all these things, we’ve never ruled it out.

I just don’t think we’ve had a great track record necessarily in chasing single commodity-specific exposures, particularly after, and the chances of getting it right after they’ve already run a long way.

: Thanks, Brett. Well, I don’t have any further questions. So Mark, I might hand back to you to close the webinar.

Mark Freeman, CEO and Managing Director, Djerriwarrh Investments: Okay, thanks, Jeff, so thank you, everyone, for joining this webinar. These are an important part of our process to give shareholders a chance to particularly hear from the managers of the portfolio in terms of the activity that’s been occurring. Obviously, the dividend yield on Djerriwarrh has been very pleasing, so it is a great source of franked dividends for investors. Our next update will be shareholder information meetings in March, but obviously, we’ll be doing another webinar like this in July for the full year results, so thank you for attending.

: That does conclude our webinar today. Thank you for your participation. You may now disconnect your line.