HHV’s after tax profit falls by 40pc

Listed investment company, Hunter Hall Global Value limited (HHV), has announced lower headline profit for the 2016 financial year, but that its porfolio outperformed against the MSCI world index.

The firm said it generated a before tax profit of $42.5 million and an after tax profit of $30.5 million for the 2016 financial year, while in 2015 it generated $66 million before tax and $51.20 million after tax. 

Meantime, in 2015, the MSCI world index produced a return of 24.6 per cent, while its portfolio outperformed it by 5.4 per cent. In 2016, the MSCI world index returned 0.4 per cent, while HHV outperformed against it, by 11.9 per cent.

HHV also generated a total shareholder return of 20 per cent.

The company's performance was underpinned by outstanding investment performance, as their portfolio returned 12.3 per cent (after fees and expenses) over the last 12 months to 30 June 2016.

It outperformed against the MSCI World Index, as well as against the ASX All Ordinaries Accumulation Index.

The company's chief investment officer, Peter Hall, said: "Our relatively high weightings of gold and cash, and low exposure to European financials meant we were well positioned for the Brexit shock and the negative sentiment that persisted over global markets".

St Barbara was a standout performer over the year, as were Doray Minerals, Vocus, Medical Development, Beadell Resources and Sirtex Medical, which made significant contributions to portfolio returns, Hall said.