Listed Investment companies are influenced by two key factors: the performance of the investment portfolio and the relationship between the share price and the value of underlying assets. Hearts and Minds Investments Limited (ASX:HM1) focused on both areas during FY26. The concentrated global equities vehicle, which does not charge management fees and instead supports Australian medical research, delivered a positive portfolio return, managed its cost base and continued Dividend payments. Its shares also traded below net tangible assets.

Latest Development

Hearts and Minds released its FY26 results on 26 August 2026. The portfolio returned 5.2% before tax for the year ended 30 June 2026, while total Shareholder return was 3.1%. Post-tax net tangible Assets finished at A$3.38 per share, compared with A$3.44 a year earlier.

The board declared a fully franked final dividend of 10.0 cents per share, taking FY26 distributions to 18.5 cents per share. The shares traded ex-dividend on 9 September 2026, with payment scheduled for 15 October 2026.

Company Overview

Hearts and Minds Investments listed in November 2018 and operates a concentrated long-only global equities portfolio. The portfolio typically includes approximately 25 to 35 securities, with investments sourced from ideas presented at the Sohn Hearts and Minds Investment Leaders Conference and recommendations from participating fund managers.

The company’s structure differs from traditional investment vehicles. Rather than charging management fees, Hearts and Minds donates a portion of net tangible assets each year to designated Australian medical research organisations. FY26 donations totalled A$11.4 million, with cumulative donations associated with the company and conference reaching A$96.1 million.

What Investors May Watch Next

Weekly NTA estimates and monthly updates provide ongoing visibility into portfolio performance. The October 2026 dividend payment, the next Sohn Hearts and Minds conference and any resulting portfolio changes are areas to monitor.

The relationship between the share price and NTA will also remain relevant, as listed investment companies can trade at either a discount or premium to their underlying asset value.

Risks

A concentrated portfolio of approximately 25 to 35 securities can create higher exposure to individual holdings compared with broader market indices. Investment returns may vary depending on the performance of selected companies and sectors.

The discount to NTA may continue or widen regardless of portfolio performance. Dividends depend on investment returns and available profits, while global investments introduce currency exposure.

Bottom Line

Hearts and Minds Investments enters September 2026 with a portfolio return of 5.2% before tax for FY26, fully franked distributions of 18.5 cents per share and a structure that continues supporting medical research through donations.

The key area to monitor is the relationship between the share price and underlying asset value, alongside portfolio performance and future investment outcomes.