AFIC's hundred-year long game (Australian Foundation Investment Company)

Does consistency and patience win in the end? Geoff Driver is General Manager at Australian Foundation Investment Company (AFIC), the century-old ASX mainstay managing $10B in assets. Amid an upcoming CEO transition and questions about performance, Geoff explains why he remains confident in AFIC’s philosophy of seeking resilient businesses with quality balance sheets.

So, why does AFIC avoid “cyclical” sectors like gold and small-caps, even when they’re having a strong run? How does AFIC’s listed investment company (LIC) structure work, and how is it different from the “open-ended” structure of an ETF?

We examine Australia’s obsession with dividends, the technicalities and the benefits for different tax brackets, the power of the franking credit system, and why Geoff believes it creates a fairer market for individual shareholders. 

Plus, why AFIC won’t be starting a big international portfolio anytime soon.

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