Australian Foundation Investment Co Ltd

More From Australian Foundation Investment Co Ltd


How Does AFIC Make Its Investment Decisions?
The Company's investment decisions are driven primarily by the decisions made by the Investment Committee, which usually meets weekly. An in house dealing team works in close consultation with our Chairman and Managing Director undertakes the day to day management of the Company's portfolio and associated research with all transactions subject to review and oversight by the Investment Committee.




Australian Foundation Investment Company (AFIC) specialises in investing in Australian equities. We have been investing in Australian companies for over 80 years and are Australia's largest listed investment company with a market capitalisation of $4.28 billion (at 30 June 2009).

Investment Aims

We aim to provide shareholders with attractive investment returns through access to a steady stream of fully franked dividends and enhancement of capital invested.

In this regard our primary goals are:

  • To pay dividends which, over time, grow faster than the rate of inflation; and
  • To provide attractive total returns over the medium to long term.
Advantages in Investing in AFIC
  • A diversified portfolio numbering around 75 of Australia's major companies
  • A Board and Investment Committee with extensive investment skills and practical business experience
  • A fund with no upfront fees or commissions to third parties - transaction costs will be borne when buying and selling AFIC shares through a stockbroker
  • Managements fees - 0.19% for the financial year to 30-06-09
  • On-going capital management
  • AFIC as a separate legal entity pays tax just like any other company
  • Yearly and half yearly profit announcements, regular shareholder briefings and access to all company announcements, including net asset backing announcements that are intended to keep shareholders informed about the Company's activities and performance
How We Invest

AFIC, along with other listed investment companies, has what is termed 'a closed end' structure. This means the number of shares on issue is fixed and set by the Board from time to time.

As a result, AFIC does not issue new shares or cancel them as investors enter and leave the fund.

This allows us to concentrate on the performance of the portfolio invested over the longer term without having to provide for continuous inflows or outflows of monies.

This structure also provides AFIC with the ability to pay franked dividends out of after tax realised profits and interest and franked dividends received on its underlying investments.

Investing With Us

An investment in AFIC can be used for a number of different purposes. For example some shareholders invest on behalf of their children; others use AFIC as part of their self-managed superfund whilst some shareholders use AFIC to as a way of providing funds for different life events.

AFIC's investment horizon is over the long term so you need to consider this when thinking about whether an investment in AFIC is going to satisfy your specific needs.

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