3 questions lodged at 2025 AFIC (AFI) hybrid AGM
September 30, 2025
Below is the text of the 3 written questions submitted at the 100 minute AFIC (AFI) hybrid AGM held at 10am on September 30, 2025 at RACV Melbourne and via Link/MUFG platform. They were commendably read in full with no editing. See notice of meeting. Market cap was $9b on AGM day. See 6 questions asked at 2022 AGM and 6 questions asked at 2023 AGM.
Q1. I asked about chair Craig Drummond's workload at the 2022 AGM and since then he has taken over as chair of the Sir Ian Potter foundation, joined the Ramsay board and applied to replace Richard Goyder as the next AFL chair. When you add in his chairmanship at Transurban, this is all too much. Could Craig comment on what he has offered the AFL in terms of workload management if he is successful. Could this be his last AFIC AGM or is he committed to this role for the long term no matter what else happens in his board portfolio?
Answer: The chair said he's a hard worker who can manage his workload and this definitely would not be his last AFIC AGM. Watch video of exchange via Twitter.
Q2. Nothing has happened strategically within the AFIC stable since the 2000 Amcil IPO. Meanwhile, Argo has created an infrastructure fund, Soul Patts has snapped up Milton & Geoff Wilson's stable have taken over 14 smaller LICs with Platinum Capital & Pengana both currently in his sights. As Australia's biggest LIC, why are we strategically sterile when we should be getting bigger by snapping up smaller rivals and delivering scale benefits for investors. Do you even speak to smaller LICs interested in joining our stable?
Answer: The chair Craig Drummond passed to CEO Mark Freeman who stressed that other operations (such as Geoff Wilson who he didn't name) were motivated by maximising their funds under management because they are externally managed, unlike the AFIC stable. However, AFIC is glacially progressing with what may finish as a separate internationally focused LIC. Watch video of exchange via Twitter.
Q3. There was an article in The Intelligent Investor on July 2 this year which suggested we deployed sharp tactics to secure $20m worth of discounted shares in stablemate Mirrabooka through its $85m 1-for-7 non-renounceable offer at $3.06. Predictably, the majority of Mirrabooka's 8,000 retail shareholders did not participate but then AFIC swooped, lifting its 4.51% stake in Mirrabooka to 6.86% after spending $20m buying 6.534m shares. On what grounds was it appropriate for related party AFIC to be allocated 23.5% of the shares offered in a capital raising by an associated company?
Answer: The chair initially passed to CEO Mark Freeman who said it was an issue for Mirrabooka (he's the CEO of all 4 LICs in the stable), which took external advice. He then went into some detail about how the offer allowed for unlimited overs and pointed out that the decision to apply for $20m worth of stock was an AFIC board decision. Well, yes, but very few offers have unlimited overs these days so it looks like the structure was designed to allow AFIC to come in and expand its shareholding at a discount which would not have been possible on the open market. Watch video of exchange via Twitter, plus these additional comments by chair Craig Drummond rejecting suggestions that there was something amiss.
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