Investment company AMCIL Ltd expects the Australian sharemarket to remain difficult in the short term as local investors wait for events to play out in Europe.
AMCIL reported a 4.0 per cent portfolio return in the 12 months to June 30.
The result contrasted to a decrease of 6.7 per cent on the S&P/ASX 200 Accumulation Index over the corresponding period.
The Melbourne-based listed investment company said the return of the portfolio since recapitalisation in January 2004 was 11.9 per cent per annum whereas the index return was 7.2 per cent per annum.
AMCIL reported profit for the year of $8.9 million, up on last year’s figure of $8.4 million.
The company said the volatile environment provided opportunities for it to add new holdings to the portfolio.
“The market is expected to remain difficult for some time as events in Europe play out and sentiment in Australia remains cautious,” AMCIL said.
“However, we remain positive about the medium to long-term returns for Australian equities.”
AMCIL will pay a fully franked final dividend of 2.5 cents per share.
At 1540 AEST Amcil Ltd shares were flat at 72 cents.
