Listed investment company AFIC's profit is up 45.6 per cent to $406.4 million with net tangible assets per share rising from $6.27 in June 2018 to $6.49. The portfolio return for the year as 11.4 per cent, including franking and after costs, compared to an index return of 13.4 per cent.

Final dividends for 2018-19 will reach 32 cents, including a fully franked final dividend of 14 cents per share, up from 24 cents the year before. The full year profit included major share buy-backs held by Rio Tinto and BHP and special dividends, including from the Coles demerger.

"The Australian equity market is facing an interesting dilemma," managing director Mark Freeman tells shareholders today.

"Very low interest rates are reinforcing the move by many investors to buy equities at a time when the Reserve Bank of Australia is concerned about the outlook for the economy. If the economy does weaken, then this is likely to have implications for the earnings outlook for a number of companies."

"We believe, against this backdrop, a focus on owning quality companies, with strong industry positions, is essential. AFIC is typically close to fully invested, however we have some cash available to add to selected holdings should there be any short-term disappointments during the upcoming reporting season that produces resulting share price weakness."

The number of companies in its portfolio has fallen to 76 companies, down from 91 at the start of the year.