Authorised Investment Fund’s strategy to invest in the high-growth companies has returned as massive as a 7 times increase in the valuation of investments. The positive momentum in investments has pulled the company’s interim profit up by giant 214% to $74,474 for the six-month ended 31 December 2018.
At the end of the year, the Net Tangible Assets of Authorised Investment Fund Limited (ASX: AIY) stood at 3.479 cents per security, up from 2.07 cents per security as reported in the previous corresponding period. The positive change in fair value of the investment was vastly seen in the valuation of 30% owned beauty brand AENEA, 10% owned Strike Marketing, 9% owned Endless Solar, 25% owned Collins Court Corporation and 40% owned Plumber Federation.
The robust financial growth underscores the company’s streamline activities which closely focus on investing in innovative companies with potential high growth as a passive investor. AIY primarily invests through providing passive equity capital to eligible small and medium-sized Australian companies that show promising prospects of growth, in accordance with the Pooled Development Fund (PDF) Act.
More on numbers front, AIY’s Profit After Tax of $74,474 for six months to 31 Dec 2018 compares to the loss of $65,580 for the six months ended 31 Dec 2017. The net assets of the company have increased to $11,880,784 at the half year on the basis of fair market value of the investee companies, up from $8,885,203 as at 30 June 2018.
AIY’s portfolio of financial assets includes the group of listed and unlisted Australian companies wherein it can be seen that the company has a special inclination for growing digital media companies like Box Digital and Asian Integrated Media. The company has massively invested in the Hong-Kong-based private digital media company, Asian Integrated Media Pty Ltd acquiring its 25% stakes and in talks to acquire further 30% stakes in its joint venture with Ambient Digital Group.
The other major sector of the company’s interest includes consumer discretionary comprising of cosmetic brand AENEA and Wine Development Fund PL. Authorised Investment Fund Limited holds 30% interest in beauty and skin-care product company, AENEA, founded by Damien Zannetou. AENEA operates as a luxury goods brand with holding company now in Australia while the operating company based in London UK. The value of AIY’s investment in AENEA increased by $373,333 during the six months ended 31 December 2018. At the same time, the valuation of Strike Marketing increased by $72,000, Endless Solar by $659,122, Plumber Federation by $284,420 and Collins Court by $89,300.
AIY’s growth driven strategy of investment has won the investors trust as the stock maintains a powerful upside position on the Australian Securities Exchange. Over the past 5 years, the stock has returned more than three-fold in its price with attractive 107.49% returns in the past 12 months.
The short-term performance of the stock has also been continually encouraging that reflects the positive movement of 159.38% in the past three months.
AIY last traded at $0.083 with the market capitalisation of $33.3 million as at 19 March 2019.
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