Ausbil’s active investment process aims to exploit the inefficiencies across the market, at all stages of the cycle and across all market conditions, with the aim of producing consistent and risk controlled outperformance.

To achieve returns (before fees and taxes) in excess of the benchmark over the medium to long term with moderate tax effective income. There is no guarantee that this objective will be achieved.

Benefits of investing in the Ausbil Australian Active Equity Fund

Investing in the Fund offers a range of benefits, including:

• Exposure to large cap companies: access to a portfolio of large capitalised companies that individual investors may not be able to invest in directly on their own.

• Diversification: the potential to diversify an investment portfolio.

• Experienced team: access to Ausbil's highly experienced investment management team with a proven track record.

• Expertise: access to the Australian investment expertise and knowledge of the Ausbil investment management professionals, who combine company level research with top down economic analysis resulting in a disciplined approach to portfolio construction.

• Regular reporting: direct investors can keep track of their investments through Ausbil's secure client website, www.ausbil.com.au. In addition direct investors will receive regular unitholder statements and an annual tax statement.

Risk level

Very high

Investor suitability

The Fund is designed for investors with at least a five year investment time horizon, who wish to benefit from the long-term capital gains available from share investments and who are comfortable with fluctuations in capital value in the short to medium term.

The Fund is designed for investors with at least a five year 
investment time horizon, who wish to benefit from the longterm capital gains available from share investments and 
who are comfortable with fluctuations in capital value in the 
short to medium term.

About the Fund

The Australian Active Equity Fund is an actively managed core Australian equity fund benchmarked to the S&P/ASX 300 Accumulation Index.

The Fund invests in a broad portfolio of listed Australian shares, assessed by our investment team to provide the greatest opportunities of appreciation over the coming 12 months. The Fund is designed for investors who wish to benefit from the long-term capital gains available from share investments and who are comfortable with fluctuations in capital value in the short to medium term.

Ausbil believes that active management of portfolios facilitates consistent and risk controlled outperformance. Rather than focusing only on growth or value investing, Ausbil's investment processes allow it to exploit the inefficiencies across the entire market, at all stages of the cycle and across all market conditions.

Key features of the strategy

• invest in 30-40 quality large and mid cap Australian companies

• the process favours companies with positive earnings and earnings revision profiles

• aims to provide investors with long-term capital growth and income

Investment style

We classify ourselves as core'; wherein at certain stages of the cycle the portfolio may have a value or growth tilt as markets provide opportunities for particular types of stocks to enjoy earnings growth. Ausbil employs a four-stage process to provide the framework for portfolio construction consistent with its investment philosophy.

1. Macroeconomic analysis: Assess current economic and market conditions
   
2. Sectoral analysis: Identify attractive sectors and portfolio themes
   
3. Stock selection: Fundamental stock analysis integrated with ESG and quantitative ranking
   
4. Portfolio construction: Robust appropriate and risk aware portfolio
   

The conclusions reached in this process are constantly retested.

How we invest your money

Investment strategy

Ausbil's active investment process aims to exploit the inefficiencies across the market, at all stages of the cycle and across all market conditions, with the aim of producing consistent and risk controlled outperformance.

Investments

The Fund predominantly invests in a portfolio of listed large cap Australian equities which are primarily chosen from the S&P/ASX 300 Index.

Asset allocation and ranges

• Australian securities: 90%-100%

• Cash: 0%-10%

The Fund will generally hold between 30 and 40 listed companies. In addition, it may invest in unlisted companies which are expected to be listed on any recognised exchange.

Although the Fund's Constitution permits the use of derivatives and borrowing cash, Ausbil does not intend to use derivatives or borrow cash on behalf of the Fund.

The Fund may move outside the ranges set out above, for example where a large application is received or due to market movements. Ausbil will seek to rebalance the Fund within the ranges in a reasonable period of time.