Macquarie Specialist Investments receives first rating from Lonsec for its Dividend-Run Up Fund
Lee Hayes
Macquarie Specialist Investments (MSI) yesterday announced its Dividend Run-Up Fund has received its first rating from investment research house Lonsec.
The Macquarie Dividend Run-Up Fund (the Fund) invests in high-yielding Australian stocks in order to take advantage of pricing anomalies around stock dividend periods. It provides investors with the opportunity to earn total returns through distributions from dividend income (with potential franking credits attached[1] ) as well as any trading gains.
In addition, the Fund employs a risk-management overlay that seeks to provide downside protection (to approximately 30 per cent of the value of any losses incurred) as well as the potential for superior risk-adjusted returns to traditional long-only equities funds.
Lee Hayes, Co-Head of Distribution, MSI said: “MSI is pleased the Fund has received an Investment Grade rating from Lonsec.
“The Fund’s inaugural rating is timely because allocating capital for risk-averse clients remains a challenge for market participants. With interest rates at historically low levels and with some prevailing uncertainty in global bond markets, traditional go-to asset classes may not be appealing to many. The recent retreat in equity markets may present opportunities, however for some clients, the risk of significant capital loss means this option may also be off the table.
“The Fund’s risk-management overlay means that while it will underperform long-only funds in periods of strong returns, in periods of bearish, flat or moderately rising markets, it has the potential to provide superior total returns to traditional long-only equities funds. Since its inception in April 2013 and despite relatively choppy domestic market conditions, to 30 September 2015 the Fund has returned 6.21% per annum (after fees and including franking credits[1] ) with volatility of only 4.21%. Of course, past performance is not a reliable indicator of future performance.”
The Fund is currently available on Macquarie Wrap as well as off-platform.
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