General Equity Common Fund VE8
Fund objective
The General Equity Common Fund VE8 (‘the Fund’) aims to outperform its benchmark, the S&P/ASX 200 Accumulation Index, over rolling three-year periods.The Fund is fully invested in the Trust Imputation Fund (TIF). Accordingly, where indicated, information and data presented in this document is for the underlying TIF.
Present strategy
The TIF is managed using a value-based investment style. The selection process for the Imputation Fund portfolio involves a comparison of securities against the following criteria:
- a track record of paying dividends at a yield above the market average
- the underlying strength to continue and increase those dividends
- reasonable price multiples
- sound debt to equity ratios, and
- quality of management.
Risk and return profile
The price of securities listed on the Australian Stock Exchange can be extremely volatile, and may fall as well as rise. That volatility will be directly reflected in the price of units in this Fund. Investors in this Fund should have a time frame of five or more years.
Present strategy
The Fund is fully invested in the TIF. We continue to manage the TIF in line with our long established value-based investment philosophy. This places particular emphasis on companies with high quality recurring earnings, high fully franked dividend yields and conservative balance sheets. As a result, the Fund tends to hold shares from the Top 100 companies listed on the Australian Stock Exchange, most of which would be well known to investors. The holdings in these shares change over time according to our assessment of their relative value.
