Actively generated dividend income from quality equities with new Ausbil fund
Invest in Ausbil Active Dividend Income Fund via mFund code: AXW06
- Actively seeks to provide high levels of dividend income from a high-quality equity portfolio, and tactically allocating to dividend paying securities
- Primary exposure to select S&P/ASX 200 companies generating dividend income streams
- Monthly distributions to assist the cash flow needs of investors
- An ESG-inclusive investment process adds additional risk-reduction benefits
The Ausbil Active Dividend Income Fund (Fund) actively invests 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 companies which are expected to generate growing dividend streams supported by revenues, earnings and free cash flows. In addition, strategies such as tactical allocation to dividend paying securities, and opportunistic investment in cases of sentiment-driven temporary mispricing of yield, offer additional active income for the Fund.
To assist with the cash flow needs of investors, the Fund seeks to pay monthly distributions, smoothing the dividends from the underlying investments.
The Fund aims to achieve a higher level of tax effective income compared to the benchmark (S&P/ASX 200 Accumulation Index), and the potential for capital growth over the longer term.
Ausbil employs a ‘core/style indifferent’ investment approach based on the belief that earnings, and earnings revisions, are the fundamental drivers of stock prices. We seek to identify earnings changes and trends ahead of the market in our valuation process. Ausbil’s active investment approach aims to exploit inefficiencies across the market, across the cycle, and in all market conditions to produce consistent and risk-controlled outperformance.
Our investment process applies qualitative and quantitative analysis tools, and disciplined risk management, with the aim of producing consistent and risk-controlled outperformance. We take a four-stage fundamental approach to analysing these opportunities, including: macroeconomic assessment; regional and sector analysis; stock selection on fundamental analysis incorporating ESG; and risk-optimised portfolio construction. ESG factors are an essential aspect of Ausbil’s investment approach: in identifying opportunities; and in the pre-emptive identification and screening of risks. This is particularly beneficial in an active dividend income fund.
Ausbil Investment Management Limited is a leading Australian investment manager. Established in April 1997, Ausbil’s core business is the management of Australian equities for major superannuation funds, institutional investors, master trust and retail clients. Ausbil is owned by its employees and New York Life Investment Management (NYLIM), a wholly-owned subsidiary of New York Life Insurance Company.
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The information contained in this document has been prepared for general use only and does not take into account your personal investment objectives, financial situation or particular needs. Before you make any decision about whether to invest in a financial product, you should obtain and consider the Product Disclosure Statement of the financial product. The information provided by Ausbil Investment Management Limited (ABN 26 076 316 473 AFSL 229722) has been done so in good faith and has been derived from sources believed to be accurate at the time of compilation. Changes in circumstances, including unlawful interference and unauthorised tampering, after the date of publication may impact on the accuracy of the information. Ausbil Investment Management Limited accepts no responsibility for any inaccuracy or for investment decisions or any other actions taken by any person on the basis of the information included. Past performance is not a reliable indicator of future performance. Ausbil Investment Management Limited does not guarantee the performance of the Funds, the repayment of capital or any particular rate of return. The performance of any unit trust depends on the performance of its underlying investment which can fall as well as rise and can result in both capital losses and gains. Consequently, due to market influences, no assurance can be given that all stated objectives will be achieved.