AfsSec Australian Equity Fund

Download PDS, Additional Information and Application Form by clicking the following links:

AfsSec Australian Equity Fund

ARSN: 162 645 534

What is it?

The AfsSec Australian Equity Fund is a managed investment scheme that is registered with ASIC under the Corporation Act. A managed investment scheme is where investors’ money is pooled together to purchase the scheme’s assets, and it is the Responsible Entity, not the investors, who has day to day control of the scheme.

Why invest?

Benefits of investing in the Fund

  • Total return:
    By investing in Class A units, you will have an opportunity to participate in a class of units in the Fund with an investment strategy which aims to deliver a total return of the portfolio over the benchmark S&P/ASX Dividend Opportunities Index on a long term basis.
  • Capital growth:
    By investing in Class B units, you will have an opportunity to participate in a class of units in the Fund with an investment strategy that aims to deliver capital growth over the benchmark S&P/ASX Emerging Companies Index on a long term basis.
  • Liquidity:
    Most of the Fund assets of Class A units are liquid, including direct investment in shares listed on ASX and deposits with banks in Australia. You will generally be able to access your investment by submitting a withdrawal form when needed.
  • Professionally active management:
    The Fund is actively managed by our professional investment management team who is involved in the whole process of management, including, macro analysis, fundamental analysis, portfolio construction, risk management, performance monitoring, etc.
  • Possible access to franking credits:
    The assets of Class A of this Fund will be substantially invested in shares of the ASX companies paying dividends. By investing in this Fund, you may be entitled to franking credits which is from franked dividends received in respect of the Fund’s portfolio investment in shares relevant to the class of units you hold.

How does the fund work?

There are two different classes of units issued in this fund. Class A units provide exposure to shares in ASX listed companies that have a record of paying dividends in the previous financial year. Class B units provide exposure to shares issued under an IPO where the company is to be listed and the shares quoted on ASX, as well as shares of newly floated companies on the ASX. Distributions of earnings are paid half yearly and reinvested unless elected otherwise on the Application Form.

Who can invest?

Class A units are available to retail and wholesale investors.

Class B units are available to wholesale investors only.

How is your money invested?

Unit Class Unit Class A Unit Class B
Investment Objective
The investment objective is to deliver a higher total return over the benchmark S&P/ASX Dividend Opportunities Index on a long term basis (rolling periods of 5 years or more).
The investment objective is to deliver a higher capital growth over the benchmark S&P/ASX Emerging Companies Index on a long term basis (rolling periods of 5 years or more).
Minimum Suggested Time Frame
At least five years. Class A Units may be suitable for retail or wholesale investors that have a minimum 5 year investment timeframe and who seek returns consistent with the objective of Class A Units.

At least five years. Class B Units may be suitable for wholesale investors that have a minimum 5 year investment timeframe and who seek returns consistent with the objective of the Class B Units.
Investment Strategy
Invest in a diversified portfolio of shares of ASX listed companies that meet the following criteria:
1) with at least one year dividend return similar to the average level of the Benchmark; and
2) undervalued based on AfsSec’s internal analysis and valuation methodology.

Invest in a concentrated portfolio of shares offered under IPOs of companies that AfsSec consider have a growth potential which may be higher than the level of the Benchmark.
Risk Level
Medium to High level of risk
Medium to High risk of losing money in the short term. The Fund’s return may be volatile in comparison with the Benchmark.
High level of risk
High risk of losing money in the short term. The Fund’s return may be volatile in comparison with the Benchmark.
Indicative Asset Allocation Asset allocation
0 – 10%, Cash held in at call or term deposits with banks in Australia
90% - 100%, shares quoted on the ASX

Asset allocation
0 – 10%, Cash held in at call or term deposits with banks in Australia
90% - 100%, shares offered under an IPO to be quoted on the ASX or shares of newly floated companies on the ASX
Labour, Environmental, Social and Ethical Considerations


AfsSec does not take into account labour standards or ethical considerations when selecting, retaining or realising the assets of the Fund. AfsSec factors in environmental, social and ethical considerations into its investment analysis processes to the extent such matters may affect performance, however, it does not adhere to any particular set of standards, nor have predetermined view as to what environmental, social and ethical considerations will be taken into account or the extent to which they will be taken into account when making investment decisions.

How to apply

To apply, please read and understand the PDS and Additional Information PDS. Fill in the Application Form then lodge the complete Application Form together with all required documents to the address specified in the Application Form. The Application Form also sets out the methods for payment of your application money.

Download PDS, Additional Information and Application Form by clicking the following links: