In its statement to the ASX on Monday morning, Argo stated its portfolio returned 2.8 per cent compared to 2.6 per cent for the benchmark S&P/ASX 200 accumulation index.

It recorded a one cent lift in the interim dividend to 15 cents per share fully franked, the third successive increase.

Managing director Jason Beddow said the growth was mostly due to higher dividends and distributions from the investments in the portfolio as well as a volatile market.

Half-year income was also up with option activity and trading opportunities raising $7.3m for the half-year, well above the $2.1m earned in the previous corresponding period.

Beddow said Argo had started receiving management fee income, due to its management of Argo Global Listed Infrastructure Limited (AGLI), which floated on the ASX on July 3 last year.

“Although the amount of income received is modest at this early stage, the management of an external client provides another source of revenue for Argo, which should grow over time as AGLI grows” he said.

Stocks held in the portfolio increased slightly over the half-year to 104.

The cash balance at December 31 was $98 million, representing 2 per cent of the company’s total assets of $5 billion.

During the half-year, $145 million was spent on long-term investment purchases, partly funded by $59 million in disposals and takeover proceeds.

Larger movements in the portfolio were:

Beddow said many of these investment purchases resulted from capital raisings.

He said the four major Australian banks all raised significant amounts of new equity in 2015, primarily in response to the increasing capital requirements of regulators.

“In addition, the balance sheets of many energy companies have come under significant pressure due to ongoing oil price weakness, prompting capital raisings from Santos and Origin Energy.”

Argo shares were trading at $7.62 at 10am on Monday, February 1.