Australian Foundation Investment Company Ltd
(ASX:AFI) has reported net profit for the year of $103.5 million, a 75.1 per cent fall from the year before.
The company says it took a cautious approach to investing given the difficult market conditions which prevailed throughout the year.
AFI says major investments over the period were in the issues undertaken by Australian Infrastructure Fund, ANZ, Commonwealth Bank, Incitec Pivot, NAB, QBE Insurance, Rio Tinto, Santos and Westpac.
The investment company says its major sales during the 12 month period in the Investment Portfolio were driven by corporate activity, St George Bank was taken over by Westpac and Queensland Gas was taken over by British Gas.
AFI says it remains relatively cautious in the present environment, saying that economic conditions in Australia and globally are likely to remain subdued in the medium term.
Looking back at the past five years, Australian Foundation Investment Company’s profit highlight was in 2008.
