REPORT

Monthly net tangible asset (NTA) backing per share
and top 25 investments as at 31 August 2018

$
Before Tax*
6.29
31 August 2018 Ex Div
$
After Tax*
5.34
 
$
 
6.34
31 July 2018 Cum Div
$
 
5.40
 
The August 2018 figures are after the payment of the final dividend of 14 cents per share while the July figures are before the provision for the dividend.

* The before and after tax numbers relate to the provision for deferred tax on the unrealised gains in the Company’s investment portfolio. The Company is a long term investor and does not intend disposing of its total long term investment portfolio. Under current Accounting Standards, the Company is required to provide for tax on any gains that may arise on such a theoretical disposal, after the utilisation of brought forward losses.

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: $7.5 billion at 31 August 2018.

Management cost: 0.14 per cent, no performance fees.

Investment style: Long-term, fundamental, bottom-up.

Suggested investment period: Five years to 10 years or longer.

Net asset backing: released every month with top 25 investments.

Listed on ASX and NZX: 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, transparent ASX pricing, good liquidity in shares.

Shareholder meetings on a regular basis.

Shareprice trading

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Investment by Sector 21/11/2018

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Portfolio and share price performance - ending 31 December 2018

Past performance is not indicative of future performance. Portfolio performance is after expenses and tax paid whereas the Index does not have expenses or tax.

Market Commentary

The S&P/ASX 200 Accumulation Index was up 1.4 per cent over the month. The announcement of the proposed merger between TPG Telecom and Vodafone, led to a very strong performance from telecommunication services which was up 13.1 per cent over August. The other sectors to generate strong returns over the month were information technology (+12.9 per cent) and healthcare (+10.7 per cent).

 

In contrast to these increases, resources were down 4.4 per cent as continued discussions around trade tariffs impacted global sentiment and commodity prices. The other major part of the market, the banking sector, was down 1.2 per cent as the implications of the bank inquiry continued to dampen growth expectations for the sector. For more information visit our website: afi.com.au

The S&P/ASX 200 Accumulation Index was up 1.4 per cent over the month. The announcement of the proposed merger between TPG Telecom and Vodafone, led to a very strong performance from telecommunication services which was up 13.1 per cent over August. The other sectors to generate strong returns over the month were information technology (+12.9 per cent) and healthcare (+10.7 per cent).

In contrast to these increases, resources were down 4.4 per cent as continued discussions around trade tariffs impacted global sentiment and commodity prices. The other major part of the market, the banking sector, was down 1.2 per cent as the implications of the bank inquiry continued to dampen growth expectations for the sector. For more information visit our website: afi.com.au

CompanyTotal Value $ Million% of Portfolio
1Ante cras, est faucibus hic accusamus conub547.16.7
22as, est faucibus hic accusamus conub543.82.9
3Ante cras, est faucibus hic accusamus conub231.69.5
4dscras, est faucibus hic accusamus conub213.72.8
5Ante cras, est faucibus hic accusamus conub24.81.9
6Ante cras, est faucibus hic accusamus conub56.95.9
7234Ante cras, est faucibus hic accusamus conub12.82.5
Total5,421.2170.4**

* Indicates that options were outstanding against part of the holding.

** As a percentage of total portfolio (excludes cash).

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