Australian Equities Extension Fund

Australian Equities Extension Fund’s (“AEEF” or “the Fund”) objective is to provide investors with a total investment return (after fees) that outperforms the benchmark over periods of seven years or longer.

The Fund generally gains its investment exposure by mainly investing in a portfolio of Australian equities listed on the ASX or derivatives where the underlying equities are listed on the ASX. The Fund provides exposure to an actively managed strategy which uses a quantitative screening process to select stocks and build a portfolio. The strategy consists of investing in a diversified holding of long equities at all times, with some short sales of equities. Derivatives may be used in Underlying Strategies to increase exposure to specific investments, sectors or the Australian equity market, control or manage risks, reduce the cost of obtaining exposure to assets or to exploit opportunities resulting from investments believed to be mispriced.

Vinva Investment Management Limited (“Vinva”) is an independent investment management firm established in 2010. Vinva specialises in managing share investment strategies across Australia and around the globe and have a proven long-term track record.

As at 30 September 2022, Vinva managed AUD $24.5 billion in active share investment strategies covering 23 countries on behalf of over 50 institutional clients. Vinva’s investment team shares a common investment philosophy and approach developed through working together for over two decades.

Vinva believes that financial markets are dynamic and there are multiple dimensions where value can be sort and risks averted that can lead them to gain higher returns than the market. Their investment innovation and continuous process improvement provides the edge to their long-term, consistent outperformance of the market. Integral to the company’s investment innovation and continuous improvement, is Vinva’s investment team that provides insight, market knowledge and research.

At Vinva, the approach to investing involves having a deep understanding of how the financial markets process new information. Based on this deep understanding, Vinva will determine a fair value for a company’s share price and look to invest according to the estimate of that value. Vinva constructs a portfolio to capture mispriced opportunities. Key characteristics of the Vinva investment approach include:

Skilled and experienced investment professionals with a deep understanding of share markets
Systematic and disciplined portfolio construction process
Strong emphasis on risk management, consistent and incremental after-tax value added
Detailed transaction cost forecasting and modelling embedded in the portfolio construction process to minimise costs
State-of-the-art systems and technology ensure efficient and timely use of information
Understanding a company’s corporate governance when selecting the best stocks in which to invest
Dedication to on-going investment research and continual process improvement

Units will be issued at a price equal to the net asset value (“NAV”) of the Fund adjusted for estimated transaction costs (also described as Buy Spread), divided by the number of Units on issue at the relevant time. At the date of this PDS, the Buy Spread is 0.50% (or 50 basis points).

The minimum initial investment is $5,000 and thereafter in $1,000 increments.

The minimum suggested time frame for investment in the Fund is 7 - 10 years.

What are the benefits of investing in the Fund?

The Fund provides exposure to a diversified portfolio of Australian equities listed on the Australian Securities Exchange Limited (“ASX”).
Access to specialist fund managers.
Access to investment strategies which would otherwise not be available to individual retail investors.
Participation in any capital appreciation and income distributions of the fund.

Target Market Summary

This product is likely to be appropriate for a consumer seeking capital growth with a high risk (expect 4 to 6 years of negative annual returns over a typical 20-year period) and return profile to be used as a core holding (25% - 75%) or satellite component (<25%) within a portfolio where the consumer has a medium to long (7 – 10 years) term investment timeframe, and needs daily access to capital.

Important Information

This information is of a general nature only and has been prepared without taking into account your objectives, financial situation and needs. Before acting on this information you should consider its appropriateness having regard to your circumstances. You should obtain and consider the latest product disclosure statement before making a decision to invest in the fund.