AFIC's investment approach has been growing the wealth of investors since 1928.
Diversified Portfolio which reduces risk
We invest in 80 - 100 companies across a broad range of industries with an emphasis on identifying in quality companies. This helps to spread the investment risk and minimise exposure to a small number of companies or sector.
Very Low Cost and no performance fees
We make investment accessible. Very low costs and no additional performance fees let you enjoy the benefits of your investment. The cost of running the Company for the year to 30 June 2022 was 0.16% ie. $0.16 cents for each $100 invested or $1.60 for each $1,000 invested.
Long Term Investment Performance
We aim to provide shareholders with long-term capital growth and dividends that grow faster than the rate of inflation. Our goals help you achieve yours.
AFIC is an LIC with a long-term investment approach. Learn more about how AFIC works below.
What is a listed investment company (LIC)
LICs have a fixed number of shares which are traded on the Australian Stock Exchange. The closed-end nature of the fund enables a focus on long-term portfolio performance without having to deal with funds moving in and out of the portfolio due to changes in investor sentiment.
Long-term investment approach
We invest in companies that typically have high quality businesses and that are financially sound. It is our view that such businesses generate superior returns over the long-term. This approach has historically produced attractive returns and fully franked dividends over time for shareholders.
How we invest
AFIC has an experienced investment team that actively reviews current and potential investments across a broad range of companies. When selecting investments for our portfolio we look for a strong management and board, and sound financial metrics including return on investment, profit margins, cash flow and levels of debt. This approach leads to a portfolio which is typically between 80 - 100 companies.
Growing dividend income over time
AFIC receives dividends from the companies it invests in as well as other income. AFIC then distributes its income to shareholders via fully franked dividends which are paid twice a year. Shareholders can choose to reinvest these dividends via the DRP and DSSP to grow their investment over time.
What is a franked dividend?
When shareholders receive a franked dividend it means they are potentially entitled to a rebate on the tax already paid by the company AFIC invests in. Franking credits attached to the dividend are sometimes known as imputation credits.
Approach to Environment, Social and Governance Issues
Assessment of Environmental, Social and Governance (ESG) issues is an important part of our investment process. As a long-term investor, we seek to invest in companies that have strong governance and risk management processes, which includes consideration of environmental and social risks. We regularly review companies to ensure ongoing alignment with our investment framework. Please read the Environmental, Social and Governance (ESG) Issues when Investing for further information.
Environmental, Social and Governance (ESG) Issues When Investing
It's never too early to invest in your future. The most important part is to make a start.
Investing for a SMSF
Invest in AFIC as part of your Self Managed Super Fund. Learn more and download the AFIC Investing for SMSF brochure.
Investing for children
Interested in investing for children or grandchildren? Learn about the benefits of investing in AFIC for your family and download the Investing for Children brochure.
Investing for life events
Sometimes we know what's coming down the road and other times we don't. Whatever your future holds, AFIC can help you reach your goals. Learn more about preparing for important life events.
You invest in AFIC by buying AFIC shares on the Australian Stock Exchange (ASX) or New Zealand Stock Exchange (NZX). There are no subscription forms required by AFIC, but you will need to open an account with a broker.
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Choose a broker
There are two main types of brokers. Full-service stockbrokers are a dedicated stockbroker that will typically offer a broad range of services including general advice. Full-service stock brokers may charge a higher brokerage fee than online brokers. Share Trading Platform (Online Broker). These are non-advisory, share-trading platforms that gives you access to buy and sell shares online, typically for a lower cost per trade. Most major financial institutions have online brokering services.
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Purchasing AFIC shares (Trade)
Once you have set-up your broker account and have funds available in your broker account, you are ready to buy shares in AFIC (ASX code: AFI). There is no set limit on the number of AFI shares you may purchase, however your broker may apply a minimum amount (typically $500). You can purchase (and sell) AFIC shares as often as you would like, but please be aware of the cost of brokerage that is charged by your broker.
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Post Trade
Once you have become a shareholder in AFIC you will receive a welcome letter from our share registrar, Computershare, with details including your Holder Identification Number and how to update your bank details (to receive your dividend) or participate in the Dividend Reinvestment Plan (DRP) or the Dividend Substitution Share Plan (DSSP).