Objective & Performance

Objective

Milton has three key objectives

1) Increase fully franked dividends paid to shareholders over time 

2) Provide capital growth in the value of the shareholders’ investments

3) Invest in a diversified portfolio of assets which are predominantly Australian listed companies and trusts 


Performance 

Milton's performance can be assessed using a number of performance indicators as shown below. 


Dividend History 

Fully franked dividends are an important tax effective component of an investor’s return. Milton aims to payout between 85% and 95% of underlying operating profit(1) as ordinary dividends and to pass on to shareholders fully franked special dividends as they accumulate.

Milton has increased its annual dividends per share every year since the GFC, and the annual dividend is now at a record level. 

In October 2013 Milton split its shares in the ratio of five for one. The following dividend history graph has been adjusted accordingly.

(1)Underlying operating profit after tax excludes special investment revenue, acquisition costs of subsidiaries and realized capital gains and losses.


Net Tangible Asset Backing 

Milton reports its Net Tangible Asset Backing per share (NTA) to the ASX each month. The NTA, which fluctuates as the market value of the underlying investments change, provides a guide to the value of a Milton share. 

The following chart shows Milton’s NTA before provision for tax on unrealised capital gains since September 2002. 

Milton's NTA in the following chart has been adjusted for the five for one share split that occurred in October 2013.


Share Price 

Milton’s shares have traded on the ASX since 1958.

The following graph shows the historical monthly share price movements.  

Milton's share price in the following chart has been adjusted for the five for one share split that occurred in October 2013.


Share Premium / Discount to NTA 

The NTA per share in an indicator of the valuation of the shares that are traded on the ASX. When the market price exceeds the NTA, the shares are said to be trading at a premium and when the price is below NTA, they are considered to be at a discount. 


Total Portfolio and Shareholder Returns

Total returns are theoretical calculations that assume each dividend is reinvested in shares.

The calculation of these Total Returns is similar to that of the Accumulation Return of the All Ordinaries Index (XAOAI). 

The Total Portfolio Return (TPR) uses the NTA as the share value and provides a guide as to the performance of the investment portfolio. However it should be noted that the TPR is reduced by the payment of tax and expenses whilst the XAOAI is calculated pre tax and expenses.

The Total Shareholder Return (TSR) uses the share price as the share value and so it provides a guide to the return a shareholder would have received had the shares been sold.

A comparison of the TSR and the XAOAI is complicated because the calculations do not take into account the franking benefit that attaches to the dividends. Since the introduction of franking all of Milton’s dividends have been fully franked whereas the dividends from the basket of companies in the All Ordinaries Index are not all fully franked.


Diversified Portfolio 

Milton predominantly invests in a diversified portfolio of Australian listed companies and trusts which accounts for approximately 95% of total assets. See below for latest classification of investments. 

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