Top 100 CEO Interviews
Issue No. 25 - October/November 2005
Top 100 Argo shares success
Outperforming the ASX All Ords index in 2004-05 is an achievement Argo Investments CEO Rob Patterson takes pride in.
With Argo’s investment portfolio now across 180 Australian listed companies, the strength of the Australian economy has flowed across to the dividend payments of the firm’s portfolio.
“Combined with that income and the growth in value of the investments we produced a 27.1% total return for the year compared to the ASX All Ords accumulation index figure of 24.7%,” Rob says.
“It was a record year with an increase of 33.8% to $4105.1 million.
“We have had a record asset backing per share at 30 June of $5.93 compared to $4.84 per share earlier in the year.
“Dividend per share was at a record with 21 cents, totaling $497.4 million which means we have paid out most our profits back to shareholders.”
Macquarie Bank Limited was an exceptional performer for Argo as its biggest investment.
It’s been gratifying to watch Australia’s resource sector take off in 04-05 and underpin a solid sharemarket performance.
“Australia’s solid economic performance together with the emergence of China as a large global customer for our natural resources has seen many Australian companies prosper, resulting in the Australian sharemarket reaching record levels,” Rob says.
“In addition, with the growth in the superannuation flows there has been plenty of cash looking to be placed.
“Given the peaking of the property market and continued low interest rates, the share market has become the favoured asset class.”
Argo’s has been a very stable team for some time. Retention of its senior management is high, as indicated by the fact that the company has had only two CEOs in its 59-year history.
Rob has been with the company since 1969 and in the CEO position since 1982.
That experience told during this year, when attention shifted from the property marke...
