HM1 Posts $124.8M Income, 25.5% Portfolio Return, and Raises Dividend

Robust Financial Performance

Hearts and Minds Investments Limited (HM1) has unveiled a remarkable set of results for the year ended 30 June 2025, with total comprehensive income after tax reaching $124.8 million. This represents a 133% increase over the previous year, underscoring the strength of its investment strategy and portfolio management. The company’s pre-tax investment return of 25.5% notably outpaced the MSCI World Accumulation Index (AUD) benchmark return of 18.6%, reflecting a well-executed focus on high conviction global equities.

The net tangible assets (NTA) of HM1 rose to $786.7 million, up from $697.4 million a year earlier, driven by both realised gains and significant unrealised appreciation across its portfolio. Post-tax NTA per share increased to $3.44, while the share price rose to $3.04, narrowing the discount to NTA to 11.8%.

Dividend Growth and Shareholder Returns

HM1 continued its commitment to delivering shareholder value through fully franked dividends, paying 15.5 cents per share during FY25. The Board has declared an increased half-year dividend of 9.0 cents per share, payable in October 2025, signaling confidence in ongoing cash flow and profitability. Combined with share price appreciation, total shareholder return for the year was a robust 24%.

Investment Portfolio and Managerial Strategy

The company’s portfolio remains concentrated, typically holding 20 to 25 global stocks selected from the highest conviction ideas of its Core and Conference Fund Managers. Key contributors included technology and consumer discretionary stocks such as NVIDIA, Microsoft, Tencent Music, and Zillow, alongside unlisted investments like Rokt, which saw a marked valuation increase during the year.

In line with its disciplined approach, HM1 announced upcoming rotations in its Core Fund Manager lineup, introducing Prusik Investment Management as its first offshore-based Core Fund Manager. This strategic move aims to enhance global diversification and sustain strong future performance.

Philanthropic Commitment to Medical Research

True to its founding mission, HM1 allocated 1.5% of its net tangible assets annually to support leading Australian medical research organisations. In FY25, the company donated $9.5 million and accrued a further $1.8 million for future contributions. These funds support pioneering research across cardiovascular disease, neurodegeneration, diabetes, mental health, and other critical areas, leveraging the expertise of its fund managers and board members who work pro bono to maximise impact.

Leadership Transition and Outlook

FY25 also marked a leadership transition with the appointment of Richard Howes as Managing Director in June 2025. Bringing over 30 years of financial services experience, including senior roles at Challenger Limited, Howes is poised to steer HM1 through its next growth phase, balancing investment performance with its philanthropic purpose.

As HM1 approaches the tenth Sohn Hearts & Minds Conference in November 2025, the company remains focused on harnessing innovative investment ideas to generate both financial returns and social impact.