The Airlie Australian Share Fund provides an opportunity to access a highly experienced investment team with a proven track record of prudent, common sense investing.
The fund will hold a concentrated basket of between 15-35 quality Australian listed companies – Airlie's best ideas. Maximum cash holding of 10% with an aim to be fully invested. The partnership between Airlie and Magellan offers Airlie’s experience in Australian equities with Magellan’s considerable expertise in operating and distributing retail funds for Australian investors.
The Fund’s primary objective is to provide long-term capital growth and regular income through investment in Australian equities.
Airlie employs a prudent, common-sense investment approach that identifies companies based on their financial strength, attractive durable business characteristics and the quality of their management teams. Airlie invests in these companies when their view of their fair value exceeds the prevailing market price.
All management costs described above are inclusive of the estimated net effect of GST.
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The first thing we consider is the balance sheet. Only those companies with solid financial characteristics, including appropriate levels of debt for the business model, are considered for investment.
The research process focuses on the quality of the business: looking for businesses that can earn attractive or improving returns on capital in the future.
Given the decades of investment experience of the Airlie team, we typically have considerable knowledge of the histories, industries and strategies of the stocks in which we invest.
Airlie seeks to invest in companies with competent managers whose interests ideally align with those of shareholders. Airlie has a particular preference for investing in founder-led businesses, which it has found typically exhibit a longer-term focus that is rewarding for shareholders. In order to make an assessment of business and management quality, Airlie regularly meets with management teams and boards of Australian companies.
The Airlie Investment Team is one of depth and experience. Portfolio Managers Matt and Emma are supported by a further five investment professionals, including founder John Sevior.
Emma started her career in equity research in 2010 on the sell-side at Nomura, before joining Fidelity’s Australian investment team as an analyst. In 2016 she joined Airlie as an investment analyst, before becoming the portfolio manager of the Airlie Australian Share Fund in 2018. She holds a Bachelor of Commerce (Liberal Studies) from the University of Sydney.
Matt has over 20 years industry experience, he entered investment management in 1993 when he joined Perpetual Investments as an equities dealer. From there Matt progressed to be an equities analyst and portfolio manager. From 2011 to 2015, Matt was Head of Equities at Perpetual. Since joining Airlie in July 2016 Matt has managed Australian share strategies for institutional clients and is a portfolio manager for the Airlie Australian Share Fund for retail clients.
|Date||NAV Per Unit||Entry||Exit|
Please ensure that your Tax File Number (TFN) or Australian Business Number (ABN) is provided to the Unit Registry by Record Date, otherwise tax will be withheld on income attributed to you at the top marginal tax rate plus Medicare Levy.
If you have elected to receive distributions in cash, please ensure that your bank account details are provided to the Unit Registry by Record Date, otherwise your distribution payment will be withheld until a valid bank account is provided.
To review or update your TFN/ABN and bank account details, log on to the Unit Registry’s online portal.
|Date||Distribution per unit||Reinvestment price|
|June 2022||6.000 cents||TBC||ESTIMATED Annual Fund Distribution 2022|
|December 2021||5.610 cents||$3.6371|
|June 2021||5.3200 cents||$3.3366||Annual Fund Distribution 2021|
|December 2020||5.210 cents||$2.9141|
|June 2020||8.000 cents||$2.5808||Annual Fund Distribution 2020|
|December 2019||2.000 cents||$2.8246|
|June 2019||3.9469 cents||$2.6372||Annual Fund Distribution 2019|
|December 2018||2.000 cents||$2.3215|
|June 2018||0.1139 cents||$2.6017||Annual Fund Distribution 2018|
Magellan is pleased to announce that units in the Fund are expected to commence trading on the securities exchange operated by the ASX on 4 June 2020 under the ticker AASF.
If you are an investor in the Fund your holding of units will not change. You may continue to apply for and redeem units in the Fund in the same way that is offered today. There will be no change to the investment objectives of the Fund or to the fees charged to the Fund.
Commencement of trading of the Fund’s Units on the ASX will coincide with the initiation of an issuer sponsored sub-register. From that time you may move your units to your brokerage account and then trade your units on the ASX through your broker.
A replacement PDS has been lodged with the Australian Securities & Investments Commission ("ASIC") and is available here. The replacement PDS contains important information about the Fund and we recommend that you read the PDS carefully.
This notice provides important information for investors in the Airlie Australian Share Fund (Fund). This update should be read together with the Fund's Product Disclosure Statement dated 22 May 2018 (PDS).
Change of Investment Manager Entity
From 1 December 2019, Magellan Asset Management Limited (Magellan) will replace Airlie Funds Management Pty Limited (Airlie) as the investment manager for the Fund. Whilst the corporate entity acting as the investment manager will change from this date, the Fund’s portfolio managers will continue to be Matt Williams and Emma Fisher, who are both employees of Magellan.
Why is this change being made?
Airlie is a wholly-owned subsidiary of Magellan. In order to maximise operational efficiencies, Magellan is being appointed as investment manager of the Fund, replacing Airlie. Magellan will also continue to act as Responsible Entity of the Fund.
What do I need to do?
If you are an existing investor in the Fund, the transition to Magellan as the investment manager of the Fund will not result in any change to your unitholding and there is nothing that you will need to do.
If you are considering an investment in the Fund, please ensure you read this notice together with the Fund’s PDS.
Set out below are the upcoming changes that impact Airlie Australian Share Fund (ARSN – 623 378 487).
1. Change to Payment Options - Additional Investments
Removal of Direct Debit
From 1 December 2019, Magellan Asset Management Ltd (“Magellan”) will no longer be offering Direct Debit as a payment option for additional investments to Airlie Australian Share Fund.
BPAY®, Electronic Funds Transfer (“EFT”) and Australian Dollar Cheque will continue as payment methods for additional investments. The minimum amounts for additional investments by these methods will remain unchanged at $500 for BPAY® and $5,000 for EFT and Cheque.
2. Regular Monthly Investment Plan – cancellation
From 20 November 2019, the Regular Monthly Investment Plan (“Plan”) administered by means of Direct Debit will no longer be available. For those investors who currently have a Plan set up, the last Direct Debit from a nominated bank account will occur on this date. The easiest way for investors to either continue to, or start to, add to existing investments on a regular basis would be to set up a recurring BPAY® payment with their financial institution.
You have the choice of either buying units on the Securities Exchange (Ticker: AASF) via your stockbroker/online broker or applying directly with the Responsible Entity by sending an Application Form to our unit registry.
If you hold your investments via an investment administration platform, you should consult your financial adviser who will be able to assist you in investing in the Fund.
There are important differences between investing in the Fund through the Securities Exchange or by applying directly with the Responsible Entity, including the price you will receive. You should read the PDS before making any decision on how to invest in the Fund..
You can exit the Fund either by making a withdrawal request to the Responsible Entity using a Withdrawal Form or by selling units on the Securities Exchange (Ticker: AASF) via your stockbroker or online broker. How you enter the Fund does not affect the method by which you can exit the Fund.
|To make a withdrawal request with the Responsible Entity….|
|If you have a Securityholder Reference Number (SRN) or Investor Number||You will need to provide your SRN or Investor Number on your Withdrawal Form|
|If you have a Holder Identification Number (HIN) with your stockbroker or online broker||You will need to convert your holding from your HIN with your stockbroker or online broker to an SRN issued by the unit registry. This is a standard process which your stockbroker or online broker can assist you with.|
|To sell your units on the Securities Exchange….|
|If you have a Securityholder Reference Number (SRN) or Investor Number||You can provide your SRN to certain stockbrokers who can sell your units on your behalf. If your stockbroker does not offer this service, you will need to ask your stockbroker to convert or transfer your holding onto a HIN. This is a standard process which your stockbroker can assist you with. You can then instruct your stockbroker to sell your units on the Securities Exchange.|
|If you have a Holder Identification Number (HIN) with your stockbroker||You can instruct your stockbroker to sell your units on the Securities Exchange.|
There are important differences between exiting the Fund via the Securities Exchange or by withdrawing directly with the Responsible Entity, including the price you will receive. You should read the PDS or consult with your financial adviser before making any decision on how to invest in the Fund.
Your HIN or SRN can be found on the top right hand corner of your holding statement and other shareholder communications. You will typically have a HIN if you bought your units on the Securities Exchange through a stockbroker. You will typically have an SRN if you applied for unit directly with the Responsible Entity.
A HIN is a Holder Identification Number issued by your stockbroker. It is a unique number used to link all your holdings, stocks, shares, and not specific to just Magellan. A HIN is 11 characters long. It starts with an ‘X’ followed by 10 digits. For example: X0001235898
An SRN is a Securityholder Reference Number issued by the Fund’s Unit Registry and is your unique identifier in the Fund. An SRN is 11 characters long and starts with an ‘I’ followed by 10 digits. Example: I00874500369. Your SRN will be stated on your first confirmation statement and partly masked for subsequent statements.
If you invest on the Securities Exchange there is no initial minimum investment amount.
If you invest directly with the Responsible Entity by sending us an Application Form, the minimum initial investment is A$10,000 which is the same as all Magellan’s unlisted funds.
Additional investments can be made into an existing account at any time. No minimum applies for additional investments by BPAY. A minimum of $5,000 applies to other payment methods.
Yes, you may choose to automatically reinvest your distribution as additional units in the Fund regardless of how you acquired your units. If you wish to participate in the Distribution Reinvestment Plan (DRP), you can either update your election in the Unit Registry portal, available at magellan.mainstreamfs.com/login or complete the DRP Election Form located here.
The Fund charges a management and administration fee of 0.78% per annum.
Our management fees are inclusive of the estimated net effect of Goods and Services Tax (“GST”) (i.e. inclusive of GST, less any reduced input tax credits). For more information about GST, see ‘Management costs’ in the PDS.
The Responsible Entity intends that the Fund will make distributions on a half yearly basis. The Fund may make distributions more or less frequently at the discretion of the Responsible Entity but will generally make a distribution to investors at least annually.
The Fund is an active, typically 25 stock portfolio, that references the S&P/ASX 200 Accumulation Index for comparative performance measurement.
The Fund aims to have a cash or cash equivalents range of 0-10%, but generally intends to be fully invested.
The Fund is an active, typically 25 stock, portfolio with a maximum limit of issued capital ownership of 15%. The Fund can hold a maximum of 15% of any one stock in the portfolio.
The Fund has been rated by Zenith (as at June 2019), Morningstar (as at October 2019) and Lonsec (as at June 2018). Please visit the individual research house's website to view the rating and full report.
Important Information: Units in the fund(s) referred to herein are issued by Magellan Asset Management Limited (ABN 31 120 593 946, AFS Licence No. 304 301) trading as Airlie Funds Management (‘Airlie’). This material has been prepared for general information purposes only and must not be construed as investment advice or as an investment recommendation. This material does not take into account your investment objectives, financial situation or particular needs. This material does not constitute an offer or inducement to engage in an investment activity nor does it form part of any offer documentation, offer or invitation to purchase, sell or subscribe for interests in any type of investment product or service. You should obtain and consider the relevant Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) and consider obtaining professional investment advice tailored to your specific circumstances before making a decision to acquire, or continue to hold, the relevant financial product. A copy of the relevant PDS and TMD relating to an Airlie financial product may be obtained by calling by calling +61 2 9235 4760 or by visiting www.airliefundsmanagement.com.au. Past performance is not necessarily indicative of future results and no person guarantees the future performance of any fund, the amount or timing of any return from it, that asset allocations will be met, that it will be able to implement its investment strategy or that its investment objectives will be achieved. No representation or warranty is made with respect to the accuracy or completeness of any of the information contained in this material. Airlie will not be responsible or liable for any losses arising from your use or reliance upon any part of the information contained in this material. Further information regarding any benchmark referred to herein can be found at www.airliefundsmanagement.com.au. Any third party trademarks contained herein are used for information purposes only and are the property of their respective owners. Airlie claims no ownership in, nor any affiliation with, such trademarks. This material and the information contained within it may not be reproduced, or disclosed, in whole or in part, without the prior written consent of Airlie.
The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned 24 June 2021) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at https://www.zenithpartners.com.au/our-solutions/investment-research/
The rating issued 10/2021 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2021 Lonsec. All rights reserved.
© 2021 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. The Morningstar Analyst Rating™ for the Airlie Australian Share Fund is ‘Neutral’ as of 09-2021