Ausbil Investment Trust - australian GEARED Equity Fund

The Australian Geared Equity Fund is an actively managed Fund that borrows to invest into a portfolio of listed Australian equities that are generally chosen from the S&P/ASX 300 Index. The Fund will be geared by borrowing from a third party lender to purchase units in the Ausbil Managed Trusts – Australian Active Equity Fund. The gearing ratio is in part determined by the relationship between the dividend yield and the borrowing rate so that, as much as possible, the dividends and income of the Fund exceed the cost of borrowing and other expenses. Therefore, when interest rates are low relative to dividend yields, then the gearing ratio may be relatively high, and vice-versa. A specific gearing ratio is not targeted for the Fund but is managed on the basis that the estimated income generated by the portfolio exceeds the estimated borrowing cost and other expenses. The gearing ratio may also change on a daily basis as a result of market movements and cash flows into the Fund.

 

Gearing Risk

Gearing is the use of borrowings to invest. It increases and magnifies the volatility of investment gains or losses and reduces the security of capital invested. Geared investments may significantly underperform equivalent non-geared investments when the underlying assets experience negative returns. In extreme negative market conditions, all capital invested could be lost.

 

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Monthly Report

Fact Sheet

 

Zenith Rating on Geared Fund

Standard & Poors Rating on Geared Fund

 

PDS Update

Incorporated Material

Short Form PDS (IDPS users Only)

Ausbil 2008 Product Disclosure Statement

 

Forms

Additional Investment Form

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Redemption Form

Change of details Form