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Hamilton12 Australian Shares Income Fund

Class A - Wholesale Investors Only*

APIR Code: HMN7149AU

We are pleased to offer you the opportunity to invest in the Hamilton12 Australian Shares Income Fund.

At Hamilton12, we believe many existing products and investment strategies are not necessarily the best match for investors seeking equities exposure without high fees. Investors have taken note of research and have worked out that finding a portfolio manager with sufficient skill to outperform a low-cost index fund is challenging. Additionally, we believe that fees are not a good signal of quality, and investors are searching for fee minimisation, tax efficiency, and above-benchmark performance.

The Fund’s objective is to generate long-term after-tax returns for Australian resident investors in excess of the benchmark after fees, including an annual gross dividend yield (including franking) that exceeds the gross dividend yield of the benchmark. The Fund is suited to investors with an investment horizon of at least three years.

To ensure a high alignment of interests with our investors, the co-founders of Hamilton12, including ourselves, are co- invested in the Fund.

We encourage you to read the Information Memorandum thoroughly and look forward to welcoming you into the Hamilton12 Australian Shares Income Fund.

Sincerely,

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Dr. Jason Hall

Chief Investment Officer and Co-founder

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Richard McDougall

Managing Director and Co-founder

Overview

The Hamilton12 Australian Shares Income Fund aims to generate long-term after-tax returns for Australian resident investors in excess of the Benchmark after fees, including an annual gross dividend yield (including franking) that exceeds the gross dividend yield of the Benchmark.

 

The Fund uses the same evidence-based, systematic approach as the Hamilton12 Australian Diversified Yield Index that allocates the portfolio towards Securities offering high franked dividend yield and aims to mitigate risk by ensuring the Fund is diversified across industry sectors.

 

The investment universe is the Australian-listed securities of the All Ordinaries Index. The Fund’s Benchmark is the S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Superannuation).

Investment Approach

A focus on after-tax returns for an Australian resident investor underpins the investment approach. The portfolio is rebalanced six times per year using a rules-based approach that allocates the portfolio towards stocks offering high-franked dividend yield while maintaining diversification across industry sectors. All portfolio stocks are drawn from the All-Ordinaries index and are projected to pay franked dividends within six months of a rebalancing date. The stock selection follows a systematic and objective analysis of analyst dividend forecasts, historical franking levels, company-specific timing of ex-dividend dates, and share prices on portfolio rebalancing dates.

As part of Hamilton12’s risk mitigation strategy, portfolio weights take account of the portfolio stocks’ relative market capitalisation and liquidity. The fund holds approximately 100 stocks, diversified across industry sectors and stocks with large market capitalisation and medium market capitalisation (stocks in the S&P/ASX 200 and stocks outside the S&P/ASX 200 but in the All Ordinaries Index).

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Fees

Management costs: 0.60% p.a., exclusive of GST

Performance fee: 15.00%, exclusive of GST, of the amount by which the after-tax returns of the Fund exceed the after-tax returns of the Benchmark on a quarterly basis.

Buy/sell spread: Buy 0.20% / Sell 0.20%

Distributions, Applications and Redemptions

Income distribution: Quarterly

Redemptions: Daily

Applications: Completed applications must be received before 2 pm (AEDT) on the Monday following the first Friday of the following months:

  • January

  • March

  • May

  • July

  • September

  • November

Recommended minimum investment time frame

Suggested minimum investment time frame is 3 years.

Fund Structure
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* Wholesale investors are investors who qualify as Wholesale Clients under section 761G of the Corporations Act or to any other person who is not required to be given a regulated disclosure document under the Corporations Act.

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