THE international accounting brains trust scored another victory over common sense yesterday when Djerriwarrh Investments booked a post-tax loss of almost $50 million on so-called impaired investments in some of Australia's top companies, pushing its formal result into the red.
Djerriwarrh is a listed, long-term investor in top-50 ASX-listed companies that supplements dividend income and share sale profits by writing options against a portion of its shares, call options primarily.
It was founded by JB Were two decades ago and, in keeping with its parentage, is conservatively run: its management fees are low, its investment palette is restricted to the biggest companies that offer exchange-traded options, and its policy is to stream the bulk of its earnings straight out to investors, in the form of fully franked dividends.
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