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Specialist in Asia Pacific, Japan, China, India and South East Asia and Global Emerging Market equities.

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Stewart Investors manage investment portfolios on behalf of our clients over the long term and have held shares in some companies for over 20 years. They launched their first investment strategy in 1988.

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Leader in systematic equities across market cap weighted indices, smart beta and active quantitative strategies

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Equity Income

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Strategy Overview

Key Facts

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* This is an annualised interest rate from the past seven days. For actual performance for our Cash Funds, please view the performance page.

A broader, all-weather approach to equity income

Recognising that retirees need an approach that can reliably deliver income through tougher market conditions, our team pioneered a defensive equity strategy in 2005 that could provide income and some capital growth with low volatility through the cycle.

The same team manage the equity income strategy today.

Why invest

  • Aligned to the needs of conservative equity investors, the strategy is designed to provide a smoother return profile than the share market and a higher income stream over the long term.

  • Managed by recognised leaders in objectives-based equity strategies, with a proven track record through the cycle. 

  • The strategy identifies stocks across the broader share market likely to outperform. It does not rely on high dividend, low growth stocks to generate income.

  • A conservative options strategy generates income in the short term, while allowing the strategy to focus on investing in high conviction ideas for the long term.

  • Since inception in 2008, the strategy has historically proven defensive in down markets and a stable income generator through all market conditions.

  • The strategy draws on the ESG research of First Sentier Investors’ equities analysts and portfolio managers, who identify ESG issues throughout their rigorous company meeting programs. Learn about our approach to ESG  

Chasing dividend yields won't deliver the highest income over time

We believe equity income investors deserve access to some of the best investment ideas the Australian share market has to offer. We invest across the top 150 stocks on the ASX to bring our best ideas to our portfolio, rather than limiting ourselves to high dividend yielding stocks. We take this approach because the Australian stocks that have the highest dividend yields often will not deliver the highest income over time.

Income beyond dividends: A client reference guide

Can’t shake your clients’ love affair with dividends? Download a conversation aid that breaks down why stocks with high dividend yields often deliver a lower income over the long term. 

Download PDF (224KB)

What if I want more income now?

Our strategy is designed to balance short term income needs with the generation of long term total returns – delivered with smoother returns through the market cycle.

In addition to the two traditional streams of income generated from dividends and franking credits, our options strategy exploits share price volatility to generate a third stream of income called option premium income.

This additional stream generates a higher income when the market is experiencing elevated volatility – particularly through the tougher periods where companies are forced to cut dividends.

These three sources of income allow us to generate above market income distributions through all market conditions.

Case studies

Responsible Investment

Our corporate RI strategy is based upon three strategic pillars of quality, stewardship and engagement.

The Equity Income team works in partnership with other investment teams within the company to deliver objectives-based investment strategies to our clients. As part of this approach, the team draws upon the analyst research from various investment teams as inputs into the stock selection process. This will usually incorporate the identification of any relevant ESG issues identified by the teams, which is typically based on a rigorous company meeting program.

Learn more about the Equity Income team's approach to Responsible Investment

Meet the Australian Equity Income team

Rudi Minbatiwala

Head of Equity Income

Jason Moodie

Senior Portfolio Manager

Marlon Chan

Portfolio Manager

Want to know more?

Contact your Financial Adviser