Investors Mutual Australian Share Fund

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About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100170-2022-12-20-02:28.pdf
FUND MANAGER Investors Mutual
ASX Code
INVESTMENT STYLE The Fund will invest in a diversified portfolio of quality ASX listed Australian & NZ industrial and resource shares, where these shares are identified by our investment team as being undervalued.
INVESTMENT PROFILE The Fund aims to provide a rate of return (after fees and expenses and before taxes) which exceeds the return of the Benchmark on a rolling four-year basis.
BENCHMARK S&P/ASX300 Accumulation Index
FUND SIZE S&P/ASX300 Accumulation Index
FEES 0.993% p.a. of the net assets of the fund (includes GST)



Benefits of investing in the Investors Mutual Industrial Share Fund

Investing in the Fund offers you a range of benefits:

  • your money is managed by IML's investment professionals who have access to investment techniques that may not be available to all investors;
  • access to investment opportunities and markets that may not be accessible to all investors;
  • generally you can apply to withdraw your investment on any Business Day; and
  • fund managers can usually transact at a lower cost than individual investors. 

Risk level
Medium to high

This Fund is considered to be a medium to high risk investment. The Fund aims to outperform the S&P/ASX 300 Industrial Accumulation Index over the longer term.




Key Features

The Fund invests in an actively managed portfolio of securities listed on the ASX in Australia.

The Fund aims to provide attractive investment opportunities for investors seeking medium to long-term capital growth with income.

Fund overview

The Investors Mutual Australian Share Fund provides exposure to an actively managed portfolio of quality Australian shares listed on the ASX. The Fund will aim to provide attractive investment opportunities for investors seeking medium to long term capital growth with income. The Fund applies IML's conservative value based investment philosophy with a long term focus and aims to deliver consistent returns to clients.

Investment philosophy 

Our investment philosophy is based on a belief that a company's share price will reflect its underlying value in the long-term. We believe that markets are not fully efficient and there will be times that a company's share price will not reflect what we believe to be that company's true underlying value. Such situations provide our investment team with the opportunity to build long term portfolio positions in quality companies at attractive valuations. 

We are looking to invest in companies with four clear quality characteristics:

  • competitive advantage;
  • recurring earnings;
  • capable management; and
  • the ability to grow over time.

Investment style

IML has an active, "bottom-up approach to identifying, researching and valuing quality companies. Our approach is systematic, disciplined and focuses on finding companies that meet our quality criteria and then determining an appropriate valuation for those companies.

We believe that the underlying value of a company is best determined by quantifying and valuing the sustainability, quality and growth potential of a company's future earnings stream. The earnings stream from a company is important to us because it enables both the payment of dividends to shareholders and the reinvestment into the business for future growth.

IML conducts detailed in-house research and valuation as part of its overall investment process. Individual investments across all allowable asset classes are selected based upon our opinion of their ability to fulfil all or part of the objectives of the Fund. As such, we seek investments that we believe offer one or more of the following characteristics:

  • provide an absolute real return over the long-term to investors;
  • will pay a regular income stream; and
  • are less volatile (risky) than the market in which they trade and therefore should minimise the impact of a falling market on the value of your investment.

As markets move through different cycles some asset classes will be more attractive in their ability to deliver on the objectives of the Fund. The overall makeup of the investments of the Fund will therefore change from time to time to reflect this relative valuation. This is the approach we will adopt in order to manage the asset allocation of the Fund.


How we invest your money

As a guideline, the Fund will usually hold a minimum of 20 different securities. The main investments of the Fund may include a combination of:

  • securities listed on the ASX. This may include companies with operations outside Australia (including dual listed companies) but listed on the ASX;
  • cash (and cash equivalents such as other investment grade interest-bearing securities); and
  • derivatives (bought and sold options), as described below.

IML may use options, futures and other derivatives to manage risk, to gain exposure to particular securities and markets or to enhance the returns of the underlying physical investments. Derivatives are not used speculatively or for the purposes of gearing the Fund. The Fund will not borrow.

Asset classes* and allocation ranges

  • Cash**: 0 - 20%
  • Australian Equities***: 80 - 100%

*The investment guidelines provide an indication of the intended holdings in the Fund and may be higher or lower.

**Includes cash equivalents such as other investment grade interest bearing securities.

***In addition to securities listed on the ASX in Australia, the Fund may also invest in derivatives and hybrid securities such as preference shares. Please note that securities which IML expects will list on a regulated exchange may not be granted official quotation by that exchange, as the listing and quotation of securities are within the exchange's complete discretion. The Fund may gain exposure to investments through other registered managed investment schemes. Where those schemes are also managed by IML, you will not be charged additional management fees to the extent that those fees relate to an investment on behalf of the Fund.