Common Fund investments

Once received, the “award” funds are invested usually by being “pooled” with other funds in Common Fund No. 2.  If a client has sufficient funds, an amount may also be invested in Common Fund No. 3.  Funds in Common Fund No. 3 are invested in a range of Australian equities, thus providing income and growth in the longer term.  In addition, annuities, real estate, and interests in real estate, may be held on trust for persons under disability.

“Non-award” funds are generally pooled in Common Fund No. 1.

Common Fund No. 2

The prime objective for Common Fund No. 2 is to provide the maximum return achievable consistent with investments in approved securities.

Interest paid (i.e. crediting rate)

For more detailed information see our Information Guides under Cost Recovery.

Common Fund No. 3

Prior to 1 July 2004, 722 clients held shares individually in leading 50 Australian companies “on separate account”.  On 1 July 2004, Common Fund No. 3 was created by amalgamating all the shares and a “unit” price of $1.00 was created to reflect each client’s  holdings.  On 30 June 2014, the “unit” price for Common Fund No. 3 was $1.68.

The Senior Master’s equity portfolio which preceded, and now includes, Common Fund No. 3 has consistently outperformed the benchmark since its inception on 21 December 1992.

For more detailed information see further Investment Information in the Publications section of this website.

Investment risks

A detailed analysis of how FIC manages investment risks is set out in our Investment Risk Information Sheet [PDF 192KB] [Word 199KB].