An ASX listed fund aiming to maximise the benefits of an index investment style with a focus on corporate governance.

Investment Overview

Corporate governance is a set of policies that defines the relationship between stakeholders, management, and the board of directors of a company and influence how that company operates.
The Australian Governance Masters Index Fund Limited (the “Company”) invests only in the best governed top Australian companies within the S&P/ASX 100 Index, as ranked by the Company’s corporate governance analysis and third party research. The Company pursues an index style of investing with an active corporate governance bias and expects to hold securities issued by approximately 75 to 85 Australian entities within the S&P/ASX 100 at any time.

The Company believes that boards and management that show relatively high levels of
corporate governance tend to outperform relatively poorly governed companies over the
long term. The Company also seeks to promote adherence to corporate governance best practice recommendations in its investments by voting its proxies and participating in shareholder meetings.

Investment OBJECTIVES

The two key investment objectives of the company are:

  • To achieve a high real rate of return on invested capital, within risk parameters acceptable to the Directors.
  • To preserve the investment capital of the Company while having exposure to the Australian stock market.

Investment HIGHLIGHTS

Corporate Governance Focus

The Company will invest in the best governed Australian companies as ranked by the Manager’s corporate governance analysis.
The Company believes that boards and management that show relatively high levels of corporate governance are managed in the best interest of shareholders and tend to outperform relatively poorly governed companies over the long term.

Investment Strategy

The Company will invest only in entities within the S&P ASX 100 Index which in the opinion of the Company have relatively superior governance practices.

Low Cost Vehicle

The Manager will receive an annualised management fee of 0.49% (excluding GST) of the gross value of the portfolio. As the Manager is responsible for most operating costs incurred by the Company in the ordinary course of business, it is expected that the Management Expense Ratio will not exceed 0.49% in any year.

Diverse Australian Equities Exposure

The Company’s portfolio allows investors to gain exposure to at least 75 of the largest companies within the S&P ASX 100 Index and provides significant diversification that should reduce investment performance volatility.

Experienced Board and Manager

The Board comprises Jeff Whalan, David Hawes, and Maximilian Walsh.
The Manager is Dixon Advisory & Superannuation Services Limited. The Board and Manager bring together significant experience and expertise in listed equities, and in providing comprehensive financial and investment advice.

© COPYRIGHT 2010 AUSTRALIAN GOVERNANCE MASTERS INDEX FUND LIMITED | ACN: 140 842 397 | WEBSITE DESIGN: APRIL77.COM