NTA & Top 25 Investments as at 31 May 2020

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Key facts
Investment objectives: AFIC aims to provide shareholders
with attractive investment returns through access to a
growing stream of fully franked dividends and enhancement
of capital invested over the medium to long term.
Benchmark: S&P/ASX 200 Accumulation Index.
Size of portfolio: $7.0 billion at 31 May 2020.
Management cost: 0.13 per cent, no performance fees.
Investment style: Long-term, fundamental, bottom-up.
Suggested investment period: Five years to 10 years
or longer.
Net asset backing: released every month with
top 25 investments.
Listed on ASX and NZX: code AFI.
Key benefits
Diversified portfolio primarily of ASX-listed
Australian equities.
Tax-effective income via fully franked dividends.
Consistent after tax paid investment returns achieved
over the long term.
Professional management and an experienced Board,
investment and management team.
Low-cost investing.
Ease of investing, transparent ASX pricing, good liquidity
in shares.
Shareholder meetings on a regular basis.
Monthly net tangible asset (NTA) backing per share
and top 25 investments as at 31 May 2020
* The before and after tax numbers relate to the provision for deferred tax on the unrealised gains in the Company’s investment portfolio. The Company is a long term
investor and does not intend disposing of its total long term investment portfolio. Under current Accounting Standards, the Company is required to provide for tax
on any gains that may arise on such a theoretical disposal, after the utilisation of brought forward losses.
Before Tax*After Tax*
31 May 2020$5.77$5.02
30 April 2020$5.54$4.85
Share price premium/discount to NTA
15%
-10%
-5%
0%
5%
10%
May 10May 09
May
11
May
12
May
13
May
15
May
14
May
16
May
17
May
18
May 19May 20
Portfolio performance percentage per annum-periods
ending 31 May 2020*
10 year return
Net asset per share growth
plus dividends, including franking
S&P/ASX 200 Accumulation
Index, including franking
1 year return5 year return
* Assumes an investor can take full advantage of the franking credits. AFIC’s portfolio return
is also calculated after management fees, income tax and capital gains tax on realised
sales of investments. It should be noted that Index returns for the market do not include
management expenses or tax.
Past performance is not indicative of future performance.
8.7%
8.9%
4.9%
-
3
.
0%
5.8%
-
5.6%
Australian Foundation Investment Company Limited (AFIC) – ABN 56 004 147 120
Level 21, 101 Collins Street, Melbourne Victoria 3000
(03) 9650 9911 | invest@afi.com.au | afi.com.au
Share Registrar
Computershare Investor Services Pty Ltd
investorcentre.com.au
1300 662 270 (in Australia)
+61 3 9415 4373 (outside Australia)
Release authorised by Matthew Rowe, Company Secretary
2 June 2020

Important Information
This information has been prepared by Australian Foundation Investment Company Limited (AFIC)(ABN 56 004 147 120) and is provided by its subsidiary
Australian Investment Company Services Limited, holder of Australian Financial Services Licence 303209 (Provider). To the extent that this information includes
any financial product advice, the advice is of a general nature only and does not take into account any individual’s objectives, financial situation or particular
needs. Before making an investment decision an individual should assess whether it meets their own needs and consult an appropriately licensed financial
adviser. The information contained in these materials have been prepared in good faith. However, no warranty (express or implied) is made as to the accuracy,
completeness or reliability of any statements, estimates or opinions or other information contained in these materials (any of which may change without notice)
and to the maximum extent permitted by law, the Disclosers disclaim all liability and responsibility (including, without limitation, any liability arising from fault
or negligence on the part of any or all of the Disclosers) for any direct or indirect loss or damage which may be suffered by any recipient through relying on
anything contained in or omitted from these materials. A copy of the relevant Financial Services Guide can be found on AFIC’s website: www.afi.com.au
Market commentary
Australian equities improved steadily throughout May, following on from the improved performance in April, with the S&P/ASX 200
Accumulation Index up 4.4% over the month as the reopening of the economy took some of the focus away from the Coronavirus epidemic
that has shaken markets since February. This improvement in market sentiment was despite ongoing trade tensions between the US and
China and further economic threats by the US because of the outbreak of the Coronavirus.
A number of sectors were up strongly over the period, with the strongest being Information Technology (up 14.5%), Communication Services
(up 8.4%) and Materials (up 8.1%). In contrast, Healthcare fell 5.3% for the month, but has been the stand out performer over the 12 months
to 31 May delivering a positive return of 28.2%. The bank sector, which has been under extreme pressure, experienced a slight rebound over
the month and was up 4.2%, although is down 27.1% over the year to the end of May.
For more information visit our website: afi.com.au
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Industrials 16.4%
Materials 15.8%
Consumer Staples 4.7%
Banks 16.7%
Other Financials 8.3%
Information Technology 4.0%
Cash 1.4%
Energy 3.3%
Healthcare 16.3%
Communication Services 4.5%
Utilities 1.1%
Consumer Discretionary 5.7%
Real Estate 1.8%
Investment by sector
at 31 May 2020
Portfolio facts
Top 25 investments valued at closing prices at 29 May 2020
Total Value
$ Million
% of
Portfolio
1CSL 585.78.5
2Commonwealth Bank of Australia503.67.3
3BHP Group*482.47.0
4Transurban Group 330.64.8
5Wesfarmers 297.64.3
6Westpac Banking Corporation275.34.0
7Macquarie Group 238.63.5
8National Australia Bank 230.13.3
9Woolworths Group 200.32.9
10Rio Tinto 186.72.7
11Amcor179.52.6
12Telstra Corporation* 176.62.6
13Australia and New Zealand Banking Group164.42.4
14Ramsay Health Care141.52.0
15Brambles 141.32.0
16James Hardie Industries134.61.9
17Sydney Airport125.41.8
18Mainfreight 121.31.8
19Sonic Healthcare 114.21.7
20Coles Group 108.61.6
21Goodman Group102.71.5
22Woodside Petroleum 101.11.5
23Fisher & Paykel Healthcare 96.61.4
24Qube Holdings95.71.4
25Resmed93.31.4
Total5,227.6
As percentage of total portfolio value (excludes cash)75.7%
* Indicates that options were outstanding against part of the holding.