Brand

AFIC Profile for Planners

Australian Foundation Investment Company Limited (AFIC) is Australia’s largest listed investment company on the Australian Securities Exchange (ASX). It was established in 1928 and specialises in investing in Australian equities.

Key facts

Investment Objectives: AFIC aims to provide shareholders with attractive investment returns through access to a growing stream of fully franked dividends and enhancement of capital invested over the medium to long term.
Benchmark: S&P/ASX 200 Accumulation Index.
Size of portfolio:$6.4 Billion at 30 June 2016.
Management cost: 0.16 per cent, no performance fees.
Investment style: Active, fundamental, bottom-up, value.
Suggested investment period: Five years to 10 years or longer.
Net asset backing: released every month with top 25 investments.
Listed on ASX: code AFI.

Key benefits

Diversified portfolio primarily of ASX-listed Australian equities.
Tax-effective income via fully franked dividends.
Consistent after tax paid investment returns achieved over the long term
Professional management and an experienced Board, investment and management team.
Low-cost investing.
Ease of investing and transparent ASX pricing.
Shareholder meetings on a regular basis.



Portfolio Performance

Dividends paid



Portfolio facts

Top 25 investments valued at closing prices at 30 June 2016

RankCompany NameTotal Value $ mil% of Portfolio
1 Commonwealth Bank of Australia 592.4 9.5
2 Westpac Banking Corporation 457.0 7.3
3 Telstra Corporation 291.6 4.7
4 Wesfarmers 269.6 4.3
5 BHP Billiton 260.9 4.2
6 National Australia Bank* 254.0 4.1
7 Transurban Group 219.8 3.5
8 Australia & New Zealand Banking Group 204.7 3.3
9 CSL 184.9 3.0
10 Amcor 183.6 2.9
11 Rio Tinto 166.2 2.7
12 Brambles 147.8 2.4
13 Oil Search 109.9 1.8
14 Ramsay Health Care* 108.6 1.7
15 AGL Energy 107.8 1.7
16 Woolworths 104.9 1.7
17 AMP 103.7 1.6
18 Woodside Petroleum 88.1 1.4
19 Healthscope 82.9 1.3
20 QBE Insurance Group* 82.1 1.3
21 Qube Holdings 70.2 1.1
22 Incitec Pivot 66.2 1.1
23 Scentre Group0 63.7 1.0
24 TPG Telecom 63.5 1.0
25 Treasury Wine Estates* 63.5 1.0
  Total 4,347.7  
  As a percentage of total porfolio value (excludes Cash) 69.6%

* Indicates that options were outstanding against part or all of the holding

 

 

Investment by sector

What is a listed investment company?

Listed investment companies are incorporated as companies, and are closed-ended vehicles. This means they do not regularly issue new shares or cancel shares as investors join and leave the fund. Instead, investors must buy and sell existing shares on the ASX. Occasionally, new shares may be issued to increase the size of the portfolio, or units may be bought back or cancelled to reduce the size of the fund.

 

 

 

This closed-ended structure allows AFIC to concentrate on selecting investments without having to factor in money coming into or leaving the fund. This stability assists AFIC in taking a long-term approach to investing.

However, because it is a closedend fund trading on the ASX, AFIC’s share price on occasions can trade at a premium or discount to net asset backing i.e. the value of the portfolio per share. A number of different

 

 

 

factors influence this discount/ premium. It is important investors take note of where the share price is trading relative to the net asset backing i.e. the value of the portfolio per share when considering investing in AFIC.

For more information visit our website: afi.com.au

What is a Listed Investment Company - For Advisors

AFIC profile

NTA Brochure - November 2016

Important Information

This information has been prepared by Australian Foundation Investment Company Limited (AFIC) (ABN 56 004 147 120) and is provided by its subsidiary Australian Investment Company Services Limited, holder of Australian Financial Services Licence 303209 (Provider). To the extent that this information includes any financial product advice, the advice is of a general nature only and does not take into account any individual’s objectives, financial situation or particular needs. Before making an investment decision an individual should assess whether it meets their own needs and consult an appropriately licensed financial adviser. The information contained in these materials have been prepared in good faith. However, no warranty (express or implied) is made as to the accuracy, completeness or reliability of any statements, estimates or opinions or other information contained in these materials (any of which may change without notice) and to the maximum extent permitted by law, the Disclosers disclaim all liability and responsibility (including, without limitation, any liability arising from fault or negligence on the part of any or all of the Disclosers) for any direct or indirect loss or damage which may be suffered by any recipient through relying on anything contained in or omitted from these materials. A copy of the relevant Financial Services Guide can be found on AFIC’s website: www.afi.com.au