Mirrabooka Investments Limited

Mirrabooka Investments Limited (ticker: MIR) is an Australian Listed Investment Company (LIC) listed on the Australian Stock Exchange with the ticker code MIR. MIR focuses on Australian equities and has a particular emphasis on mid and small-sized companies listed on the ASX that fall outside the S&P/ASX 50 Leaders Index. Since its listing on January 1, 2001, MIR has been serving investors with a focus on medium to long-term investment gains and attractive dividend returns.

MIR is internally managed, and its primary objective is to provide shareholders with investment growth opportunities within the mid and small-cap segment of the Australian market.

Mirrabooka Investments Limited (MIR) has been operating for over two decades, with a history dating back to its listing in 2001. With 22 years of experience, MIR has established itself in the LIC landscape. As of now, MIR has a market capitalisation of approximately $550 million, reflecting its presence in the Australian equities space.

Investors considering MIR can benefit from its unique focus on mid and small-sized companies listed on the ASX and its objective of providing both investment growth and attractive dividend returns.

When assessing Mirrabooka Investments Limited (MIR) as an investment option, several key metrics should be considered:

• Long Term Performance: analyse MIR's historical performance and its ability to deliver medium to long-term investment gains. Given its focus on mid and small-sized companies, evaluate how it performs compared to its benchmark, the Combined S&P/ASX Mid 50 and Small Ordinaries Accumulation Indices.
• Dividend Reliability: Examine MIR's dividend track record, as reflected in its net dividend yield of 4.90% and gross dividend yield of 7.10%. Assess the consistency of dividend payments, which can be a key factor for income-seeking investors.
• Portfolio Focus: Understand MIR's investment focus on mid and small-sized companies listed on the ASX outside the S&P/ASX 50 Leaders Index. Consider whether this aligns with your investment goals and risk tolerance.
• Fees: Note that MIR is internally managed, which means there are no external management fees. Evaluate the overall cost of investing in MIR, which includes the Management Expense Ratio (MER) at 0.46% as of th emost recent financial year.

A Listed Investment Company (LIC) is one type of investment fund structure (i.e. shareholder funds pooled together and invested together, either actively by a manager, or passively). Other types of investment funds include Exchange Traded Funds (ETFs) (which can be both actively managed or passive), Listed Investment Trusts, or Managed Funds.

The different structures have their own positives and negatives, which are dependent on the goals of the investor and their own individual investment structure.

Some of the benefits of the LIC structure (the structure of MIR) include:

• It's a closed-end investment vehicle: Meaning the manager has a fixed pool of capital to invest with a long-term mindset, and doesn't have the risk of fast redemptions by investors in a time of market panic.
• They can smoothen out income to the investors: Which can be beneficial for both tax efficiency and emotional mindset, due to being able to retain profits over time (as compared to the trust structure, which must distribute income and crystallized capital gains to the investor in that financial year).
• The income will most likely be in the form of fully franked dividends: Which is an attractive form for Australian retirees due to the franking system in Australia. Since LICs are companies themselves and pay tax in Australia on profits, they receive franking credits paid on the tax they pay, in addition to the franking credits they receive from their investment portfolio. Well-managed LICs ensure their franking credit reserves are sufficient to pay future fully franked dividends (see 'franking reserves' chart above).