Hearts and Minds Investments (HM1) H2 2025 earnings summary

Executive summary

• Delivered a pre-tax portfolio return of 25.5% for FY25, outperforming the MSCI World Accumulation Index (AUD) return of 18.6%.

• Post-tax NTA per share rose from $3.05 to $3.44; share price increased from $2.58 to $3.04, narrowing the discount to NTA.

• Total shareholder return for FY25 was 24%, including fully franked dividends of 15.5 cents per share.

• $9.5 million donated to Australian medical research, with $1.8 million accrued for future donations.

• Leadership transition: Richard Howes appointed Managing Director in June 2025.

Financial highlights

• Total comprehensive income after tax was $124.8 million, up from $53.5 million in FY24.

• Net assets increased from $697.4 million to $786.7 million.

• Pre-tax NTA per share at $3.71; post-tax NTA per share at $3.44 as of 30 June 2025.

• Fully franked dividend of 15.5 cents per share paid; next dividend of 9.0 cents per share declared for October 2025.

• Since inception, compound annual pre-tax return of 11.6%.

Outlook and guidance

• Board remains committed to narrowing the share price discount to NTA and continuing fully franked dividends, subject to profit reserves and franking balance.

• Ongoing portfolio management with rotation of Core Fund Managers to enhance global diversification.

• Future performance dependent on portfolio returns and external market conditions.