Australian Foundation Investment Company Limited

Australian Foundation Investment Company Limited is an investment company, which is focused on investing in Australian and New Zealand equities. Its investment objective is to provide shareholders with investment returns through access to a stream of franked dividends and growth of capital invested. It has two portfolios of securities: the investment portfolio and the trading portfolio. The investment portfolio holds securities which the Company intends to retain on a long-term basis and includes a small sub-component over which options may be written and an additional small sub-component of international (non-Australian/New Zealand listed stocks). The trading portfolio consist of securities that are held for short term trading only, including call option contracts written over securities that are held in the specific sub-component of the investment portfolio and on occasion put options and is relatively small in size. Its investment sectors include banks, healthcare, and materials.