Investors seeking regular income through monthly distributions
Leading Australian investment house, Ausbil, launches an Active Dividend Income Fund
combining a core and tactical allocation approach to generating higher dividend income, paid to investors in monthly distributions.
“In this low rate environment, and with people living longer in retirement, investors need diversified and higher income sources, with the potential over the long term for capital to grow,” said Michael Price, Portfolio Manager.
The Ausbil Active Dividend Income Fund actively invests in Australian securities to generate dividend income through:
- sustainable earnings upgrades,
- cyclical opportunities,
- sentiment-driven mispricing,
- dividend imputation and franking credits, and
- tactically allocating to dividend paying securities.
The Fund invests primarily in S&P/ASX 200 companies which are expected to generate growing dividend streams supported by revenues, earnings and free cash flows.
“Strategies such as tactical allocation to dividend paying securities, and opportunistic investment in cases of temporary mispricing of yield, can generate additional active income,” Mr Price said.
“With an active dividend approach, we are able to generate monthly distributions rather than half-yearly,” he said. “This benefits investors seeking regular income who used to hesitate at the traditional half-yearly structure of distributions.”
“The dividend income market is transforming,” noted Mark Knight, Head of Distribution at Ausbil. “Income investors like SMSFs, retirees, and investors approaching retirement can diversify away from traditional sources of income like fixed income and term deposits for a longer-term approach diversified across high-quality Australian companies.”
The Fund is supported by an experienced investment team with a proven track record in active dividend investment, who combine company level research with top-down economic analysis and a disciplined approach to portfolio construction. Ausbil’s investment processes enables it to exploit inefficiencies across the market, at all stages of the cycle, and across all market conditions.
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