Investment strategy

Overview

The Australian Governance Masters Index Fund has been established with the core belief that companies who exhibit superior governance practices operate with a more sustainable business model, deliver stronger financial performance and resultant shareholder value over the longer term.

The company provides investors with exposure to the best governed top Australian companies within the S&P/ASX 100 Index, as ranked by the company’s corporate governance analysis. The company pursues a lower cost, index style of investing with an active corporate governance bias, and expects to hold a portfolio of approximately 75 to 85 Australian equities.

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 investment focus 
    The company provides exposure to the best governed Australian companies as ranked by the manager’s corporate governance analysis. 
  • Low-cost vehicle 
    Total expense ratio is capped at 0.19% p.a. (inc GST net RITC) of the gross value of the portfolio. The manager also does not charge a performance fee.
  • Promoting strong adherence to corporate governance standards and board responsibility 
    The company seeks to promote adherence to corporate governance best practice recommendations in its investments by engaging with portfolio companies, voting its proxies and participating in shareholder meetings.
  • 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 and manager have significant experience and expertise in corporate governance structures and compliance frameworks, in addition to listed equities and listed investment company experience.

Risks

Like all investments, an investment in the company carries risks which may result in the loss of income or principal invested. In addition to the general risks of investing, specific risks associated with investing in the company include, but are not limited to, equity risk, market risk and financial market volatility risk. For further information about the risks of investing in the product see Section 4 of the Prospectus.