MFF Capital Investments Announces June 2026 NTA, Highlights $119 Million Tax Payments and Plans 21.0 Cents Per Share Fully Franked Dividend for FY26

MFF Capital’s Pre-Tax NTA Declines Slightly to $4.991 While Post-Tax NTA Rises to $4.241 as of 30 June 2026

MFF Capital Investments released unaudited, approximate NTA figures for 30 June 2026, reporting a pre-tax NTA per share of $4.991, a slight decrease from $5.021 recorded at 30 June 2025. The company explained that pre-tax NTA figures account for tax paid, reflected in cash balances, and are adjusted for any current tax instalments payable. It also noted that these tax payments and adjustments affect pre-tax NTA comparisons with trusts and indices, which investors should consider when benchmarking performance.

Conversely, post-tax NTA per share rose to $4.241 at 30 June 2026, up from $4.167 at 30 June 2025. Post-tax NTA incorporates net tax liabilities, including current and deferred tax liabilities less deferred tax assets. The difference between pre- and post-tax movements reflects the ongoing interaction between realised tax payments reducing cash holdings and changes in deferred tax positions across the portfolio. All figures remain unaudited and approximate, as stated by the company.

MFF’s Planned 11.0 Cents Per Share Final Dividend Completes a Fully Franked 21.0 Cents Per Share FY26 Dividend

MFF Capital confirmed its expectation to pay fully franked dividends totaling 21.0 cents per share for FY26. The 10.0 cents per share interim dividend was paid on 11 May 2026, and the company intends to distribute a final dividend of 11.0 cents per share. However, the final dividend remains subject to prevailing corporate, legal, tax, and regulatory approvals and is not yet confirmed.

For long-term investors, MFF’s dividend history provides additional perspective. Since 2016, the company has paid or declared total dividends of 99.5 cents per share. Including the value of franking credits, this amount rises to 142.1 cents per share, reflecting MFF’s consistent policy of paying 100% franked dividends since 2017. The franking credit balance stood at 45.2 cents per share as at 31 December 2025, offering a strong buffer to support future fully franked dividends.

$119 Million in Cash Taxes Paid During FY26 Reflects Portfolio Gains and Reduces Investment Assets

A key highlight of the June 2026 update was the magnitude of MFF’s tax payments. The company paid approximately $119.0 million in cash taxes since 30 June 2025, including $7.7 million in June alone. The portfolio manager emphasized that these substantial tax payments have directly reduced the company’s investment assets.

However, the portfolio manager also noted an important offset: under current policy, these tax payments contribute to franking credits attached to MFF dividends. Shareholders able to fully utilise franking credits benefit tangibly from the tax paid, effectively transforming a reduction in net assets into enhanced after-tax dividend income. Investors assessing MFF’s total return should consider the value of franking credits when comparing performance against indices or other investment vehicles lacking similar franking balances.

Portfolio Manager Highlights June as a Test of Patience Amid Geopolitical Risks and Speculative Technology Trends

In his monthly commentary, MFF’s portfolio manager described June as “another month to test patience, even at MFF with our portfolio of advantaged businesses.” He acknowledged that while MFF benefits from some current market activity by building the portfolio on attractive terms, the company remains “largely detached from the hottest areas of tech shortages and from meme stocks.” This reflects MFF’s long-standing investment philosophy of focusing on quality businesses with durable competitive advantages rather than chasing momentum or speculative trends.

The update noted rising risks and ongoing negatives in June, including wars, energy issues, inflation, and interest rates, alongside geopolitical tensions and concerns about socialist and populist policies affecting businesses and consumer sentiment. The Middle East conflict was specifically mentioned, with the portfolio manager observing that “the stalemate in the Middle East war may result in short-term impacts that are somewhat less than many feared,” while also acknowledging significant damage to energy and transport infrastructure and ripple effects from energy price increases and shortages.

MFF Maintains Net Cash and Balance Sheet Strength Through June, Holding Liquidity Steady

Throughout June 2026, MFF sustained its net cash position and substantial additional balance sheet capacity, alongside ongoing portfolio liquidity, according to the company. This financial flexibility aligns with MFF’s strategy of holding dry powder to capitalize on investment opportunities when businesses become available on favourable terms. The portfolio manager reiterated the goal of maintaining a portfolio of “very high-quality businesses” acquired on satisfactory or better terms.

The company also continued to benefit from earnings growth within its holdings, including “technology enablers and beneficiaries.” By preserving net cash and balance sheet capacity, MFF positions itself to respond to market dislocations or valuation opportunities without needing to raise equity capital or sell positions prematurely. The update did not disclose specific portfolio composition or individual holdings.

Artificial Intelligence Investment and Technology Valuations Central to MFF’s June Market Review

The portfolio manager’s commentary devoted significant attention to artificial intelligence and broader technology investments shaping current market dynamics. The update suggested that “extraordinary technological advances may have added US$1 trillion to near-term revenues at 80% incremental margins,” reflecting shortages and technological attributes. Applying conservative valuation multiples of seven or eight times pre-tax margins to these incremental revenues, the portfolio manager noted, results in an extreme market value uplift for sellers, compounded further when unlisted technology companies eventually list publicly.

The update also addressed accounting treatment of major technology capital expenditure, noting that depreciating US$1 trillion over six or seven years significantly increases aggregate reported and normalized profits. While acknowledging these factors have enhanced MFF’s figures in recent years, the portfolio manager cautioned that duration, magnitude, competitive intensity, government and regulatory interventions, and second-order effects remain uncertain. This reflects MFF’s analytical approach aimed at avoiding overpayment for earnings that may prove unsustainable.

Fundamental Analysis Faces Challenges as Momentum and Passive Strategies Dominate June Market Activity

The update provided a frank assessment of the difficult environment for value-oriented and fundamentals-based investors. The portfolio manager observed that replacing fundamental analysis with price-chasing behaviour has been typical in market recoveries since the global financial crisis and “arguably increased further in June.” This dynamic means risks are more acutely felt by analytical investors focused on long-term valuations compared to momentum or black-box strategies, passive indices, and those with shorter investment horizons.

Nonetheless, the portfolio manager affirmed that companies with sustainable competitive advantages and profitable growth prospects “remain very valuable for portfolios,” primarily dependent on price. Pricing power and economic cycles were emphasized as critical for businesses and investors, alongside technology impacts — which include both disruption benefits and cost increases for many technology users. The commentary also acknowledged that shorter investment horizons may become more compelling for some investors during late upcycles and early correction phases, subtly highlighting market cycle risks.

MFF’s Investment Approach: Emphasizing Margins of Safety, Duration, and Selectivity

The June update offered insight into MFF’s portfolio construction in the current environment. The portfolio manager described a preference for “combinations of value and quality with duration advantages,” meaning businesses with high probabilities of sustainable success. The firm seeks significant “margins of safety,” defined as low prices for extremely high-quality businesses with growth prospects supported by sustainable advantages — factors that “materially increase prospects for success over time, provided holdings can extend for duration.”

MFF’s process involves “eliminating the vast majority of market prices and businesses from focus” rather than building a broadly diversified portfolio. The portfolio manager noted that recent technological, competitive, and market conditions have narrowed preferred choices and required accepting “real risk,” such as price risk from material, non-temporary declines or increased competitive and regulatory pressures that could harm business economics. Few companies can be sustained winners amid change and heightened risks — a view that underpins MFF’s concentrated, high-conviction investment style.

June Sees Accelerated IPO Activity and Equity Market Speculation Fueled by Wealth Effects and Stimulus

The update observed that IPOs and other equity and debt raisings accelerated in June, noting “no scarcity of equity trading instruments.” The portfolio manager attributed ongoing market gains to investor optimism, especially regarding technology, and broader speculation driven by stimulus, strong business revenues and capital investments, profit margins, and wealth effects. Companies remained generally positive, with “resilient” used to describe recent results and short-term outlooks despite adverse government actions in many cases.

The broader market context reflects elevated optimism alongside genuine fundamental improvements in corporate earnings — a combination historically creating both opportunities and risks for patient, long-term investors like MFF. The portfolio manager referenced periods before the 1987 crash and the 2000 technology and telecoms bubble, drawing parallels to current conditions where speculators successfully gamble on easy money and technological advances. Digital applications have made speculation “even more accessible for the latest generation,” suggesting unique characteristics in the current cycle that demand careful analysis.

Key Considerations for MFF Capital Investors Following June 2026 NTA Update

Investors should focus on the intended final dividend of 11.0 cents per share, which MFF has announced but not yet confirmed with a payment date or record date. The payment remains subject to corporate, legal, tax, and regulatory approvals. Shareholders are advised to watch for further company announcements confirming the dividend schedule. Monthly NTA updates will continue to provide ongoing insights into portfolio performance and balance sheet status.

Investors may also look for commentary regarding portfolio activity, specifically whether MFF is deploying its net cash and balance sheet capacity into new or existing investments as market conditions evolve. The portfolio manager’s views on technology valuations, geopolitical risks, and the balance between fundamental and momentum investing offer valuable context on MFF’s approach to current opportunities. Public information did not clarify the immediate share price reaction to this NTA update.