FIDUCIAN GEARED AUSTRALIAN SHARES FUND

The Fiducian Geared Australian Shares Fund gives investors the opportunity to utilise a modest level of gearing built into the structure of the Fund to leverage exposure to the Australian share market. This Fund spreads investment between two specialist geared share fund managers as well as including exposure to the Fiducian Australian Shares Fund and the varied specialist managers within that fund. Australian shares as an asset sector can deliver high returns over long periods of time, but can also show sharp and significant fluctuations in value, up or down, over short intervals. These fluctuations would tend to be increased, both up and down, by the inclusion of gearing within the structure of the Fund. This Fund also allows investors to participate in Australia’s economic growth and enables Australian resident investors to benefit from favourable tax treatment accompanying franked earnings of Australian shares.

Each of the two external managers has a target allocation of 25% of total investment in the Fund, with a range of 15% to 40%. This level of asset allocation within the Fund would provide investors with a moderate overall level of gearing (of around 25% to 30% on average). Investors in the Fund should experience a lower average level of volatility than they would experience if invested in either of the underlying geared share funds due to the non-geared balance of the investment in the Fiducian Australian Shares Fund.

Fund Commencement
October 2003.

Benchmark and Objective
The relevant market index is the S&P/ASX 300 Accumulation Index. The objective is to magnify returns from capital growth by borrowing to invest in securities listed on the Australian Stock Exchange. The Fund aims to exceed the benchmark (after fees) over rolling 5-year periods.

Asset Allocation