audio close compressed excel image menu pdf video word

Performance with
a focus on income

Performance
Scroll

There are two key measures of Djerriwarrh’s performance: dividend yield and total return.

Relative Dividend Yield

The relative dividend yield on Djerriwarrh's net asset backing and shares, including franking, is generally higher than the S&P/ASX 200 Index, with franking and the return available from a retail term deposit with the major banks.

The yield on net asset backing is important as it highlights the dividend achieved through the underlying investment activity of the Company, including the relative income benefit of the option strategies.

Total Return

Total return is measured by the change in net assets per share including the reinvestment of dividends. This is measured relative to the S&P/ASX 200 Accumulation Index (which also assumes reinvestment of dividends).

Djerriwarrh is a medium to long term investor, so our investment performance is focused over a corresponding period, say five to ten years.

It should be noted that the writing of call options to generate income will invariably mean that some capital growth is forgone in order to generate more immediate fully franked income. In this context it would be unlikely that the total return of Djerriwarrh would exceed the Index over time. However, it would be expected that in addition to an enhanced dividend yield there would be some capital growth in the portfolio over the long term.