Australian Share Funds

Australian share funds

Australian share funds invest primarily in approved unit trust schemes that have exposure to a diversified portfolio of Australian shares or invest directly into a range of actively managed Australian shares listed on the ASX. These funds provide attractive investment opportunities for investors seeking medium to long term capital growth with income.

Investment Options	Risk Level	Investment Objective	Investment Strategy
Australian Share Funds
Yarra Ex-20 Australian Equities Fund	6 – High	To achieve medium-to-long term capital growth through exposure to Australian Securities Exchange listed securities excluding those included in the S&P/ASX 20 Index. In doing so, the aim is to outperform the S&P/ASX 300 ex S&P/ASX 20 Accumulation Index over rolling three-year periods.	The philosophy of the fund is based on the belief that markets are competitive but not perfectly efficient and that mispricing opportunities arise when the market’s valuation (as depicted in the share price) doesn’t reflect the manager’s views on a company’s true value. The Fund invests in securities which are listed or to be listed on the Australian Securities Exchange (excluding securities in the S&P/ASX 20 Index) with a bias towards those within the S&P/ASX 300 ex S&P/ASX 20 Index. Investments in securities that are elevated to the S&P/ASX 20 Index will be sold within 18 months. Generally, 15 to 35 securities are held in the portfolio. Where appropriate, financial derivatives will be used to manage investment risk and gain or reduce exposure to relevant markets in an efficient manner whilst still remaining within allowable asset allocation ranges.
Firetrail Australian Small Companies Fund	7- Very high	The Fund aims to outperform the S&P/ ASX Small Ordinaries Accumulation Index over the medium to long term after fees.	The Fund will typically hold approximately 40 small company securities at any point in time. Typically, up to 20% of the Fund may be held in companies in the S&P/ASX 100 Index (but not in the S&P/ASX 50 Index). The Fund may invest in derivatives, including futures. A derivative is a contract between two parties that derives its value from an underlying asset (or group of assets) and can be a highly volatile investment instrument. The derivative itself is a contract between two or more parties based upon the asset or assets. In addition to managing exposure of the Fund, the use of derivatives offers the opportunity for higher gains and can also magnify losses to the Fund. The Fund will invest in over-the-counter (OTC) derivatives or derivatives that are traded on a regulated exchange. The total notional value of derivatives (OTC and exchange traded derivatives) for the Fund will not exceed 10% of the NAV of the Fund, excluding derivatives used for currency hedging purposes. The Fund will not use derivatives for gearing purposes.
Betashares Australia 200 ETF Fund	6 – High	The investment objective of the Betashares Australia 200 ETF is to provide an investment return that tracks the performance of the Solactive Australia 200 Index (the ‘Index’), before taking into account fees and expenses.	In seeking to achieve the investment objective of the Fund will employ a passive management approach designed to track the performance of the relevant Index, before fees and expenses. The Fund will generally seek to invest in the securities that comprise the relevant Index in proportion to the weightings of the securities in the Index. This is known as a “full replication” strategy. As far as practicable, the timing and nature of any changes to the composition of the Fund’s investments will generally correspond with the timing and nature of changes to the relevant Index. The holdings of a Fund may not always exactly replicate its index.
Perpetual Income Share Fund	6 – High	The Fund aims to provide investors with exposure to a diversified portfolio of tax-effective high income yielding Australian securities that are also expected to product some long-term capital and aims to deliver an above market dividend yield as measured by the S&P/ASX 200 Accumulation Index.	Perpetual researches companies of all sizes using consistent share selection criteria. Perpetual’s priority is to select those companies that represent the best investment quality and are appropriately priced. In determining investment quality, investments are carefully selected on the basis of four key investment criteria: conservative debt levels, sound management, quality business and recurring earnings. Derivatives may be used in managing the Fund.
Fidelity Future Leaders Fund	6 – High	To achieve returns in excess of the S&P/ASX Mid Small Index over the suggested minimum investment time period of five to seven years.	Perpetual researches companies of all sizes using consistent share selection criteria. Perpetual’s priority is to select those companies that represent the best investment quality and are appropriately priced. In determining investment quality, investments are carefully selected on the basis of four key investment criteria: conservative debt levels, sound management, quality business and recurring earnings. Derivatives may be used in managing the Fund.

Investment Options

Risk Level

Investment Objective

Investment Strategy

Australian Share Funds

Yarra Ex-20 Australian Equities Fund

6 – High

To achieve medium-to-long term capital growth through exposure to Australian Securities Exchange listed securities excluding those included in the S&P/ASX 20 Index. In doing so, the aim is to outperform the S&P/ASX 300 ex S&P/ASX 20 Accumulation Index over rolling three-year periods.

The philosophy of the fund is based on the belief that markets are competitive but not perfectly efficient and that mispricing opportunities arise when the market’s valuation (as depicted in the share price) doesn’t reflect the manager’s views on a company’s true value. The Fund invests in securities which are listed or to be listed on the Australian Securities Exchange (excluding securities in the S&P/ASX 20 Index) with a bias towards those within the S&P/ASX 300 ex S&P/ASX 20 Index. Investments in securities that are elevated to the S&P/ASX 20 Index will be sold within 18 months. Generally, 15 to 35 securities are held in the portfolio. Where appropriate, financial derivatives will be used to manage investment risk and gain or reduce exposure to relevant markets in an efficient manner whilst still remaining within allowable asset allocation ranges.

Firetrail Australian Small Companies Fund

7- Very high

The Fund aims to outperform the S&P/ ASX Small Ordinaries Accumulation Index over the medium to long term after fees.

The Fund will typically hold approximately 40 small company securities at any point in time. Typically, up to 20% of the Fund may be held in companies in the S&P/ASX 100 Index (but not in the S&P/ASX 50 Index). The Fund may invest in derivatives, including futures. A derivative is a contract between two parties that derives its value from an underlying asset (or group of assets) and can be a highly volatile investment instrument.

The derivative itself is a contract between two or more parties based upon the asset or assets. In addition to managing exposure of the Fund, the use of derivatives offers the opportunity for higher gains and can also magnify losses to the Fund. The Fund will invest in over-the-counter (OTC) derivatives or derivatives that are traded on a regulated exchange.

The total notional value of derivatives (OTC and exchange traded derivatives) for the Fund will not exceed 10% of the NAV of the Fund, excluding derivatives used for currency hedging purposes. The Fund will not use derivatives for gearing purposes.

Betashares Australia 200 ETF Fund

6 – High

The investment objective of the Betashares Australia 200 ETF is to provide an investment return that tracks the performance of the Solactive Australia 200 Index (the ‘Index’), before taking into account fees and expenses.

In seeking to achieve the investment objective of the Fund will employ a passive management approach designed to track the performance of the relevant Index, before fees and expenses. The Fund will generally seek to invest in the securities that comprise the relevant Index in proportion to the weightings of the securities in the Index. This is known as a “full replication” strategy.

As far as practicable, the timing and nature of any changes to the composition of the Fund’s investments will generally correspond with the timing and nature of changes to the relevant Index. The holdings of a Fund may not always exactly replicate its index.

Perpetual Income Share Fund

6 – High

The Fund aims to provide investors with exposure to a diversified portfolio of tax-effective high income yielding Australian securities that are also expected to product some long-term capital and aims to deliver an above market dividend yield as measured by the S&P/ASX 200 Accumulation Index.

Perpetual researches companies of all sizes using consistent share selection criteria. Perpetual’s priority is to select those companies that represent the best investment quality and are appropriately priced. In determining investment quality, investments are carefully selected on the basis of four key investment
criteria: conservative debt levels, sound management, quality business and recurring earnings.
Derivatives may be used in managing the Fund.

Fidelity Future Leaders Fund

6 – High

To achieve returns in excess of the S&P/ASX Mid Small Index over the suggested minimum investment time period of five to seven years.