Ausbil Active Dividend Income Fund
Australian fund manager Ausbil has launched a new dividend fund called the Ausbil Active Dividend Income Fund. The fund generates income through a core and tactical allocation approach to investing.
The fund will pay monthly income to investors and aims to return to investors a higher level of tax effective income compared to the benchmark of the S&P/ASX 200 Accumulation Index.
“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,” portfolio manager, Michael Price, said.
The strategy focuses on: sustainable earnings upgrades; cyclical opportunities; sentiment-driven mispricing, dividend imputation and franking credits; and tactically allocating to dividend paying securities.
“Strategies such as tactical allocation to dividend paying securities, and opportunistic investment in cases of temporary mispricing of yield, can generate additional active income,” Price said.