Lazard Australian Diversified Income fund receives highest Lonsec rating


The Lazard Australian Diversified Income (LADI) fund has been awarded a ‘Highly Recommended’ rating from leading independent research house Lonsec, which is the firm’s highest rating category*.

The actively managed Fund, launched in 2012, is currently invested in 24 companies that meet the criteria of having a dividend yield above the cash rate, capital appreciation potential and sustainability of dividend.

The Fund is designed to provide regular, tax effective income that grows over time. It sources that income by investing in Australian companies with sustainable dividends, or by investing in cash, depending on where the best opportunities exist. It has a total return focus through the objective of providing both income and capital growth.

This rating signals Lonsec has “a very strong conviction the financial product can generate risk adjusted returns in line with its objectives” and in Lonsec’s view “the product is a preferred entry point to this asset class or strategy.”

The report notes that Lonsec has “a strong regard for the senior members of the investment team who possess extensive co-tenure at Lazard and considerable tenure working together.”

In terms of the fund’s performance record Lonsec notes “the fund has outperformed the cash rate over 12 months to August 2017, delivering an income return of 4.72% and a franked return of 6.19%, and the income objective has been achieved over the three and five years to August 2017.

Further, “in terms of total returns, on a rolling three and five year basis to August 2017, the fund returned 8,86% p.a. and 12.87% respectively” and that “it has outperformed Lonsec’s Absolute Return peer group, net of fees, across these time frames.

*Rating Issued September 2017

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