Maple-Brown Abbott Funds

Through our range of Australian equities wholesale investment funds, our experienced investment team has been using the same investment approach to help sophisticated investors, charities and family offices grow their wealth for over 30 years.

At the heart of our Australian equities investment philosophy is our bottom-up stock selection approach, where we invest our client’s capital in companies that we believe are trading below their true intrinsic value. This same investment approach has been applied to our Asia Pacific equities strategy since 2002.

Our global listed infrastructure investment strategy targets infrastructure stocks with low volatility, inflation protection and strong corporate governance. We apply deep fundamental analysis whilst controlling macroeconomic risks.

We also offer multi-asset funds for clients wanting more diversified exposure to Australian and international equities, Australian fixed interest, REITs, cash and alternative assets.

Our investment teams across all of our strategies are highly experienced. We also ensure our interests are aligned with those of our clients, and that everything we do is consistent with our strong risk management and compliance framework.

We know from decades of experience that it’s our proven approach that has allowed us to provide attractive returns over the long term.

Distribution timetable

December 2018

Small Companies Value Fund

Important notice to investors

Performance

Fund As at date 1 mth
%
3 mths
%
1 yr
% p.a.
3 yrs
% p.a.
4 yrs
% p.a.
5 yrs
% p.a.
Since inception
% p.a.
Inception
date
Australian equities
Australian Equity Trust 30/11/2018 -2.8 -7.5 -2.1 7.5 4.9 4.9 10.9 Dec 1992
Responsible Investment Fund 30/11/2018 -3.0 -8.4 -4.3 5.5 3.7 3.7 5.7 Sep 2009
Australian Share Fund - Wholesale 30/11/2018 -2.7 -7.6 -2.8 7.0 4.4 4.3 7.8 Jun 1998
Australian Geared Equity Fund - Wholesale 30/11/2018 -5.4 -14.3 -8.5 9.1 4.2 4.2 6.7 Oct 2002
Australian equities - Retail
Australian Share Fund - Retail 30/11/2018 -2.8 -7.8 -3.9 5.7 3.2 3.1 9.3 Jun 1986
Australian Geared Equity Fund - Retail 30/11/2018 -5.5 -14.7 -10.2 7.0 2.3 2.3 3.1 Oct 2002
Asia Pacific equities
Asian Investment Trust 30/11/2018 -0.1 -9.0 -3.8 8.6 7.2 8.6 10.1 Oct 2002
Asia Pacific Trust 30/11/2018 -1.5 -10.0 -3.2 9.3 7.9 8.7 9.4 Apr 2004
Australia Plus Asia Trust 30/11/2018 -2.6 -9.5 -4.5 6.7 4.5 4.0 5.8 Dec 2005
Global listed infrastructure
Global Listed Infrastructure Fund 30/11/2018 -4.5 -5.8 -6.2 5.6 7.8 11.1 13.9 Dec 2012
Global Listed Infrastructure Fund - Hedged 30/11/2018 -1.4 -3.8 -5.8 6.4 n/a n/a 5.7 Jul 2015
Multi-asset
Diversified Investment Trust 30/11/2018 -1.6 -4.9 -1.6 5.0 4.7 5.3 9.0 May 1988
Pooled Superannuation Trust 30/11/2018 -1.4 -4.4 -0.7 5.5 5.3 6.0 9.4 Dec 1986
Please note that the figures above represent past performance, and past performance is not a reliable indicator of future performance. Returns are volatile and may fluctuate quickly and significantly. Neither Maple-Brown Abbott Limited nor any other person makes any representation nor gives any guarantee as to the future performance or success of, the rate of income or capital return from, recovery of money invested in, or income tax or other taxation consequences of, any investment in the trusts shown on this website. Please refer to relevant Fund above for an explanation of how the performance figures are calculated.

Unit prices

Fund Date Redemption price Net asset value Application price
Australian equities
Australian Equity Trust 13/12/2018 $   0.9961 $   0.9982 $   1.0003
Responsible Investment Fund 13/12/2018 $   1.1356 $   1.1380 $   1.1404
Australian Share Fund - Wholesale 13/12/2018 $   0.9569 $   0.9588 $   0.9607
Australian Geared Equity Fund - Wholesale 13/12/2018 $   0.4580 $   0.4598 $   0.4615
Australian equities - Retail
Australian Share Fund - Retail 13/12/2018 $   0.9516 $   0.9516 $   0.9516
Australian Geared Equity Fund - Retail 13/12/2018 $   0.2592 $   0.2602 $   0.2611
Asia Pacific equities
Asian Investment Trust 13/12/2018 $   1.1590 $   1.1632 $   1.1674
Asia Pacific Trust 13/12/2018 $   1.4410 $   1.4458 $   1.4506
Australia Plus Asia Trust 13/12/2018 $   1.0638 $   1.0663 $   1.0688
Global listed infrastructure
Global Listed Infrastructure Fund 13/12/2018 $   1.6236 $   1.6269 $   1.6302
Global Listed Infrastructure Fund - Hedged 13/12/2018 $   1.0437 $   1.0458 $   1.0479
Multi-asset
Diversified Investment Trust 13/12/2018 $   2.0594 $   2.0631 $   2.0668
Pooled Superannuation Trust 13/12/2018 $ 17.5016 $ 17.5296 $ 17.5576

Distributions

Fund Date Cents per unit Div 12-H Summary Tax Component Summary
Australian equities
Australian Equity Trust 30/09/2018 3.2600 ¢ Div 12-H Summary n/a
Responsible Investment Fund 30/09/2018 2.3350 ¢ Div 12-H Summary n/a
Australian Share Fund - Wholesale 30/09/2018 2.7045 ¢ Div 12-H Summary Tax Component Summary
Australian Geared Equity Fund - Wholesale 30/06/2018 0.6112 ¢ Div 12-H Summary Tax Component Summary
Australian equities - Retail
Australian Share Fund - Retail 30/09/2018 2.3805 ¢ Div 12-H Summary n/a
Australian Geared Equity Fund - Retail 30/06/2018 0.3493 ¢ Div 12-H Summary n/a
Asia Pacific equities
Asian Investment Trust 30/09/2018 0.8717 ¢ Div 12-H Summary n/a
Asia Pacific Trust 30/06/2018 16.7911 ¢ Div 12-H Summary n/a
Australia Plus Asia Trust 30/09/2018 1.9612 ¢ Div 12-H Summary n/a
Global listed infrastructure
Global Listed Infrastructure Fund 30/09/2018 1.0000 ¢ Div 12-H Summary Tax Component Summary
Global Listed Infrastructure Fund - Hedged 30/09/2018 0.6500 ¢ Div 12-H Summary Tax Component Summary
Multi-asset
Diversified Investment Trust 30/09/2018 1.5000 ¢ Div 12-H Summary n/a
Pooled Superannuation Trust n/a n/a n/a n/a

Fact Sheets

Offer Documents

Fees and Costs

Management Costs *

Fund Base
Fee
% 1 & 2
Performance
Fee
% 3
Indirect
Costs
% 3
Recoverable
Expenses
% 3
Total

%
Australian equities
Australian Equity Trust 0.38 0.00 n/a 0.01 0.39
Responsible Investment Fund 0.90 n/a n/a n/a 0.90
Australian Share Fund - Wholesale 0.92 n/a n/a n/a 0.92
Australian Geared Equity Fund - Wholesale 1.03 n/a n/a n/a 1.03
Australian equities - Retail
Australian Share Fund - Retail 2.05 n/a n/a n/a 2.05
Australian Geared Equity Fund - Retail 2.05 n/a n/a n/a 2.05
Asia Pacific equities
Asian Investment Trust 1.03 n/a n/a 0.04 1.07
Asia Pacific Trust 1.02 n/a n/a 0.17 1.19
Australia Plus Asia Trust 0.48 0.00 n/a 0.02 0.50
Global listed infrastructure
Global Listed Infrastructure Fund 0.98 n/a n/a n/a 0.98
Global Listed Infrastructure Fund - Hedged 1.00 n/a n/a n/a 1.00
Multi-asset
Diversified Investment Trust 0.89 n/a 0.06 0.01 0.96
1) Unless otherwise stated, all fees are quoted on a GST inclusive basis and net of any applicable Reduced Input Tax Credits.

2) The base fee is the fee that we charge for managing the assets and overseeing the operations of the Fund, expressed as a percentage of the net asset value of the Fund.

3) All other components of the management costs are based on the performance fee, indirect costs and recoverable expenses incurred during the prior financial year ended 30 June, expressed as a percentage of the net asset value of the Fund. Please refer to relevant Fund above for an explanation of the components of management costs.

* Fees may be negotiated if you are a wholesale investor as defined in the Corporations Act 2001 (Cth).


Transactional and Operational Costs *

Fund Total transactional and
operational costs
% 1
Less buy-sell
spread recovery
%
Net transactional and
operational costs
%
Australian equities
Australian Equity Trust 0.17 0.09 0.08
Responsible Investment Fund 0.12 0.03 0.09
Australian Share Fund - Wholesale 0.11 0.03 0.08
Australian Geared Equity Fund - Wholesale 3.04 0.11 2.93
Australian equities - Retail
Australian Share Fund - Retail 0.11 0.03 0.08
Australian Geared Equity Fund - Retail 3.04 0.11 2.93
Asia Pacific equities
Asian Investment Trust 0.26 0.09 0.17
Asia Pacific Trust 0.20 0.04 0.16
Global listed infrastructure
Global Listed Infrastructure Fund 0.17 0.09 0.08
Global Listed Infrastructure Fund - Hedged 0.17 0.06 0.11
Multi-asset
Diversified Investment Trust 0.08 0.03 0.05

1) Based on the estimated costs incurred during the prior financial year ended 30 June, expressed as a percentage of the average Fund net asset value.


* Please refer to relevant Fund above for an explanation of the Transactional and Operational Costs.



Buy / Sell Spreads *

Fund Total spread
%
Australian equities
Australian Equity Trust 0.21 / 0.21
Responsible Investment Fund 0.21 / 0.21
Australian Share Fund - Wholesale 1 0.20 / 0.20
Australian Geared Equity Fund - Wholesale 0.38 / 0.38
Australian equities - Retail
Australian Share Fund - Retail 1 0.00 / 0.00
Australian Geared Equity Fund - Retail 0.38 / 0.38
Asia Pacific equities
Asian Investment Trust 0.36 / 0.36
Asia Pacific Trust 0.33 / 0.33
Australia Plus Asia Trust 0.23 / 0.23
Global listed infrastructure
Global Listed Infrastructure Fund 0.20 / 0.20
Global Listed Infrastructure Fund - Hedged 0.20 / 0.20
Multi-asset
Diversified Investment Trust 0.18 / 0.18
Pooled Superannuation Trust 0.16 / 0.16

* The buy-sell spread is an additional cost to you. This ensures existing investors are not disadvantaged due to the costs associated with buying or selling the Fund’s investments as a result of applications and withdrawals.


1)
Wholesale investment only
The buy-sell spread is an additional cost to you. This ensures existing investors are not disadvantaged due to the costs associated with buying or selling the Fund’s investments as a result of wholesale applications and withdrawals.

Retail investment only
There is no buy-sell spread for the ordinary class. Existing investors may be disadvantaged due to the costs associated with buying or selling the Fund’s investments as a result of retail applications and withdrawals.



Pooled Superannuation Trust Investment Fee *

Fund Base
Fee
% 1 & 2
Fees paid to
other investment managers
% 3
Net transactional and
operational costs
% 4
Total
investment fee
%
Pooled Superannuation Trust 0.65 0.08 0.08 0.81

1) Unless otherwise stated, all fees are quoted on a GST inclusive basis and net of any applicable Reduced Input Tax Credits


2) The base fee is the fee that we charge for managing the assets and overseeing the operations of the Trust, expressed as a percentage of the net asset value of the Trust


3) Fees paid to other investment managers are based on the fees and costs incurred during the prior the prior financial year ended 30 June


4) Based on the costs incurred during the prior financial year ended 30 June, expressed as a percentage of the average Trust net asset value. Please refer to Trust above for an explanation of the Transactional and Operational Costs


* Fees may be negotiated if you are a wholesale investor as defined in the Corporations Act 2001 (Cth)



Pooled Superannuation Trust Administration Fee

Fund Administration fee
%
Pooled Superannuation Trust 0.01

The Administration fee is comprised of the audit fee for the Trust and an annual levy payable to the Australian Prudential Regulation Authority (APRA), and is based on the audit fee and APRA levy incurred during the prior financial year ended 30 June

Forms

Australian equities

Our investment philosophy

Our Australian equities investment capability is the foundation on which Maple-Brown Abbott was initially established in 1984. Our investment philosophy is based on the following key principles:

We are value investors

We believe stock valuations are driven by the financial performance of the underlying business. By always taking a long-term view, we can use periods of short-term pessimism to our advantage and buy good businesses at attractive prices.

We are bottom-up stock pickers

We use our in-depth internal research process to identify those good Australian companies that we believe offer the best long-term risk/return opportunity in the market.

We invest for the long-term

We look to hold a stock for at least four years, as we believe this allows the company’s true intrinsic value to be realised based on its underlying earnings, cash flows and dividends.

We are often contrarian

With share prices representing the market consensus, we will often move early and against the crowd to invest in undervalued companies that we believe will generate strong investment performance.

Our investment approach

As bottom-up stock pickers, we place a strong emphasis on fundamental company research. We start by using quantitative value screens to rank our investment universe of around 280 companies from ‘cheap’ to ‘expensive’.

Our experienced team then conducts in-depth analysis and prepares estimates on companies, including meetings with company management. This research identifies those stocks that are currently trading at an attractive discount to their true underlying value. Each analyst then presents their investment thesis to our investment committee, along with their recommendation on why the stock should be included in our portfolios.

Every recommendation is supported by a detailed research report, expected four-year return and detailed valuation model forecasting the company’s future profit and loss, balance sheet and cash flow statements.

If a stock is approved by our investment committee, it is then eligible to be included in client portfolios.

Our Australian equity portfolios are made up of those stocks in which our investment team has the highest conviction, subject to our formal risk guidelines. They generally hold between 35-60 stocks, with individual stock weightings not more than 5% above its benchmark weight.


Australian Equities
Investment philosophy and process

Asia Pacific equities

Our investment philosophy

Our Australian equities investment capability is the foundation on which Maple-Brown Abbott was initially established in 1984. We have successfully applied this process to our Asia Pacific investment capability since 2002. Our investment philosophy is based on the following key principles:

We are value investors

We believe stock valuations are driven by the financial performance of the underlying business. By always taking a long-term view, we can use periods of short-term pessimism to our advantage and buy good businesses at attractive prices.

We are bottom-up stock pickers

We use our in-depth internal research process to identify those good Australian companies that we believe offer the best long-term risk/return opportunity in the market.

We invest for the long-term

We look to hold a stock for at least four years, as we believe this allows the company’s true intrinsic value to be realised based on its underlying earnings, cash flows and dividends.

We are often contrarian

With share prices representing the market consensus, we will often move early and against the crowd to invest in undervalued companies that we believe will generate strong investment performance.

Our investment approach

As bottom-up stock pickers, we place a strong emphasis on fundamental company research. We start by using quantitative value screens to rank our Asia Pacific ex-Japan investment universe of around 900 companies from ‘cheap’ to ‘expensive’.

Our experienced team then conducts in-depth analysis and prepares estimates on companies, including meetings with company management. This research identifies those stocks that are currently trading at an attractive discount to their true underlying value. Each analyst then presents their investment thesis to our investment committee, along with their recommendation on why the stock should be included in our portfolios.

Every recommendation is supported by a detailed research report, expected four-year return and detailed valuation models forecasting the company’s future profit and loss, balance sheet and cash flow statements.

If a stock is approved by our investment committee, it is then eligible to be included in client portfolios.

Our Asia Pacific ex-Japan equity portfolios are made up of those stocks in which our investment team has the highest conviction, subject to our formal risk guidelines. They generally hold between 35-60 stocks, with individual stock weightings not more than 5% above its benchmark weight.


Asia Pacific equities
Investment philosophy and process

Global listed Infrastructure

Our investment philosophy

Our investment philosophy is based on the following key principles:

We are bottom-up stock pickers

The investments that interest us most are often trading below our assessment of their underlying value because some development has caused the market to regard the immediate prospects as poor. We consider a narrower range of “core” infrastructure assets compared to many other fund managers and infrastructure indices.

We invest for the long-term

We believe that rigorous analysis of fundamentals and valuation is necessary to find the best listed infrastructure investment opportunities globally. We forecast key financial variables over at least a ten year time horizon. The holding period for stocks in the portfolio is expected to average approximately four years.

We are focused on inflation protection and lower volatility

Our focus is on global listed infrastructure companies that have a high degree of inflation protection, low cash flow volatility and strong corporate governance and management expertise and alignment.

We are macro-risk aware

Whilst we are primarily a bottom-up and valuation driven investor, we do place an emphasis on macroeconomic research as it provides key inputs into our valuations and it is also utilised as a risk mitigation tool. Macroeconomic risks are ever present in a global asset portfolio and we seek to reduce these risks where possible.

Our investment approach

We are bottom-up stock pickers. We initially screen stocks globally with the strongest infrastructure characteristics. We are specifically looking for those companies with the best combinations of low volatility of cash flows and strong inflation linkage. We see approximately 110 companies globally as having such characteristics. These companies have a market capitalisation of approximately USD $1.3 trillion – this is clearly a very sizable opportunity set.

In regards to sectors, approximately 50% of the global listed infrastructure assets are regulated water, gas and electricity businesses, whilst the remainder is comprised of concession infrastructure assets including toll roads and airports, along with assets that are subject to long-dated contracts such as pipelines and satellite.

We perform detailed bottom-up analysis of these companies, looking at all components of the businesses. There are a number of key factors we consider important, these include the regulatory or political risk, the suitability of the capital structure, the opportunities for future investment and the strength of corporate governance. We also build long-dated project finance type models in order to value these companies.

Our investment portfolio is then constructed based on the strongest investment ideas, considered on a risk adjusted basis. We are a high conviction manager, typically only holding 25 to 35 securities. Finally, we conduct a risk review of our portfolio, reviewing for any unintended risks or biases – and based on the outputs from our proprietary Global Macroeconomic Advisory Committee.

Whilst not being a top-down manager, we are explicitly macro-risk aware throughout the investment process, focussing on the macroeconomic factors we believe to have the greatest impact on infrastructure asset valuations. Stock selection is supported by ensuring timely and consistent macroeconomic assumptions across our models. Portfolio construction includes a focus on reducing the potential for negative tail risk by considering fiscal and monetary conditions across regions. In line with our longer term investment objective we are long-term holders of stocks, not traders.


Global Listed Infrastructure
Investment philosophy and process

Multi-asset

Our investment philosophy

Our investment capability is the foundation on which Maple-Brown Abbott was initially established in 1984. Our investment philosophy is based on the following key principles:

We are value investors.

We believe stock valuations are driven by the financial performance of the underlying business. By always taking a long-term view, we can use periods of short-term pessimism to our advantage and buy good businesses at attractive prices.

We are bottom-up stock pickers.

We use our in-depth internal research process to identify those good Australian companies that we believe offer the best long-term risk/return opportunity in the market.

We invest for the long-term.

We look to hold a stock for at least four years, as we believe this allows the company’s true intrinsic value to be realised based on its underlying earnings, cash flows and dividends.

We are often contrarian.

With share prices representing the market consensus, we will often move early and against the crowd to invest in undervalued companies that we believe will generate strong investment performance.

Our investment approach

Our investment philosophy is value-orientated and applied both at the asset allocation level and at the stock selection level.

Our investment process is designed to facilitate the key elements of our investment philosophy. The primary driver of portfolio performance over time will be the contribution made from stock selection. Our investment process is focused on maximising the opportunity set provided from our bottom up research process. This is emphasised through the fact that all portfolio managers are also analysts who are responsible for various stocks or sectors.

Our clear, disciplined investment process has proven to provide good returns over the longer term. We fully integrate a strong quantitative discipline with experienced and qualitative judgement making for focused research and effective decision making.

We construct our Strategic Asset Allocation (SAA) benchmark using a traditional mean-variance optimisation process, maintaining a long-term approach to SAA.


Responsible investing

Responsible Investing

Maple-Brown Abbott has a long standing commitment to integrating Environmental, Social and Governance (ESG) factors into our investment process. Maple-Brown Abbott’s ESG strategy was formalised in 2008 when the Board approved our first ESG policy and we became a signatory to the United Nations Principles of Responsible Investing (UNPRI).

In September 2013, Maple-Brown Abbott’s Board approved three new ESG related policies covering our Responsible Investment, Proxy Voting and Engagement activities. These policies supercede our previous policies and enhance the integration of ESG into our investment process.

A summary of our key commitments under the new Responsible Investment, Proxy Voting and Engagement policies is provided below along with a link to each of the policies.

  • Reaffirmed our commitment to meeting our obligations under the UNPRI;
  • Defined organisational responsibilities for the management and execution of each aspect of our policies;
  • Broadened coverage to include Maple-Brown Abbott’s core asset exposures being Australian and self-managed international listed equities;
  • Refined the policy implementation process, including execution, documentation and monitoring requirements;
  • Facilitated training and external adviser support;
  • Undertook to enhance ESG related stakeholder reporting; and
  • Specified examples of ESG issues considered in the investment process and engagement activities.

Maple-Brown Abbott only considers ESG issues to the extent that they financially affect a particular investment. We do not specify minimum standards nor do we use any specific methodology in assessing ESG factors. We do not use a weighting system nor do we screen out any specific sector or company. Investments are monitored for their ongoing performance relating to ESG issues, but there is no set approach, specific measures nor any specific time frame set for this monitoring, and any trading decisions are made on a case by case basis.

For more information on our Proxy Voting Policy, including a summary of the proxy voting outcomes for each of our Australian and Asian Trusts and the Maple-Brown Abbott Global Listed Infrastructure Fund, please refer to the Proxy Voting Policy.


ESG at Maple-Brown Abbott
Natasha McKean