Strategy Overview

Key Facts

Equity Income - The benefits of long-term equity investing with smoother returns and an additional source of income

  • Seeks to generate returns from fundamental stock insights across a broad universe of stocks, regardless of the dividend yield of each stock, and an active options strategy
  • Options strategy extends fundamental insights and seeks to provide a smoother return profile than the broader share market (lower volatility) and a higher income stream over the long term
  • Highly experienced team with a 14 year track record

Why invest?

Long-term Focus

Strategies designed with a genuine long-term focus
Our equity income strategies combine income generation with some downside protection. We offer investors who have a long-term investment horizon a more conservative exposure to Australian shares, which seeks a better balance between the need for higher income, volatility management, and total return. The design of objectives-based investment strategies requires a solution that addresses the short term objectives without compromising long term objectives.

More about our objectives-based strategy >

Lower Volatility

Solutions for investors seeking lower volatility and higher income
We offer tailored, well-designed, low volatility equity strategies built to provide a smoother return profile than the broader share market. Our fundamentally different approach to traditional equity income funds seeks to maintain exposure to the equity risk premium while enhancing the level of income generated and limiting the degree of capital volatility. The approach can provide an added layer of risk management beyond what can be delivered through traditional asset allocation alone.

Find out what we can do for investors >

Investment Approach

We offer a fundamentally different approach to traditional equity income funds
Adopting a full coverage approach, we use fundamental stock analysis to search the entire investible universe for stocks likely to outperform the broader share market, regardless of each stocks’ dividend yield. Our focus on total returns targets strong risk adjusted returns and maximises income generation over the long term. This approach is in contrast to many of our peers who only focus on the traditional definition of ‘yield stocks’ to generate a higher income portfolio. No screening or tilting towards yield is carried out as we believe this type of investment process can adversely impact the investor’s total return over the long term. We believe that by extending the analyst’s research to selectively implement option positions on the underlying stocks, our strategy can address near-term challenges to increase the proportion of returns delivered as income and provide a smoother return profile while maintaining a long-term mindset to stock selection.

Learn more about our approach >

Responsible Investment

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

Performance and Documents

(This is not classified as a green or ESG fund in Hong Kong)

Source: First Sentier Investors 2020

Performance returns exclude franking credits. Performance returns are calculated gross of management fees and net of transaction costs. Performance returns for periods greater than one year are annualised. Past performance is not a reliable indicator of future performance.

Download Full Unit Price History


Additional Information

Investment Team

Our specialist team have managed equity income funds together for over a decade

Our equity income team comprises three dedicated portfolio managers who each have specialised derivatives expertise – and undertake derivatives related research in the equities market – as part of their portfolio management responsibilities. The portfolio managers are supported by a large group of equity analysts with a proven track record of fundamental bottom-up stock research.

The team has an established track record in managing tailored strategies and offer a range of equity income, low volatility, cash-plus multi-strategy income, tax aware and customer-based equity strategies. 

Rudi Minbatiwala
Head of Equity Income
Rudi Minbatiwala
Head of Equity Income
Jason Moodie
Senior Portfolio Manager
Jason Moodie
Senior Portfolio Manager
Marlon Chan
Portfolio Manager
Marlon Chan
Portfolio Manager

For more information