Argo Investments

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Argo Investments Limited
Public
Traded as ASXARG
Industry Diversified investments
Founded Adelaide, Australia (1946 (1946))
Headquarters Adelaide, Australia
Key people
Robert Patterson CEO
Revenue Increase A$ 134.6million (2006)
Increase A$ 123.1million (2006)
Website argoinvestments.com.au

Argo Investments Limited is an Australian listed investment company (LIC), which trades its shares on the Australian Stock Exchange (ASX). Their diversified portfolio of shares are selected for profitability and long-term growth prospects at cost-effective prices. As of 2007, it is the second largest LIC in Australia.

Argo invests predominantly in shares of other companies listed on the Australian Stock Exchange, and itself constitutes 0.29% of the All Ordinaries index.[1]

Establishment and history[edit]

Argo Investments Limited was established in Adelaide, South Australia in 1946 by Alf Adamson, a chartered accountant who had previously worked on company valuations. Sir Donald Bradman was chairman of the company for many years.

In 1990, Argo acquired investment company Schroder Dual Fund Ltd, and in 1992 it acquired Stoddarts Holdings Ltd. Argo was involved in the establishment of other LICs, including Bounty Investments Ltd and Wakefield Investments Ltd, both of which Argo maintained an investment in. In 2001, Argo merged with both Bounty and Wakefield, after making successful takeover offers for both, on the basis of offering Argo shares in exchange for shares in the companies being acquired. These terms of acquisition allowed Bounty and Wakefield shareholders to be relieved from liability to pay capital gains tax on the disposal of their shares.

By 30 June 2010, the company's principal investments were A$266.1 million stake in BHP Billiton, $183.6 million in Westpac Banking Corporation, $159.6 million in Rio Tinto Group, $132.8 million in Macquarie Group and $132.1 million in Wesfarmers.[2]

Investment philosophy[edit]

Argo has maintained a conservative investment philosophy, holding a diversified portfolio of investments in a large number of Australian listed public companies. It has historically paid regular semi-annual dividends to shareholders, with the 2010 full year dividend being 25 cents per share.[3]

References[edit]

  1. ^ "Argo Investments Limited profile" (login required). E*Trade Australia. Retrieved 2007-05-06. 
  2. ^ "Argo Investments profit rise". Herald and Weekly Times. 2 August 2010. Retrieved 23 December 2010. 
  3. ^ "Dividends paid since 1986". Argo Investments. Retrieved 23 December 2010.