Perennial to Launch Income Generator exchange traded managed fund


John Murray

Perennial Value Management is set to launch the eInvest Income Generator Fund  (Managed Fund) (ASX: EIGA), an exchange traded managed fund (ETMF) designed to meet the needs of investors seeking a regular, reliable, tax-effective income stream, as well as capital growth over time.

The investment philosophy of the eInvest Income Generator Fund will be based on the proven track record of the Perennial Value Shares for Income Trust, which was launched in December 2005. This Trust has generated an 8% per annum gross distribution yield after fees, as well as outperforming the market on a total return basis over its 12 year track record.

John Murray, Perennial Value managing director, said “The eInvest Income Generator Fund will   provide investors with regular, reliable monthly income payments, as well as the benefits of active management and diversification, accessed through an efficient, low-cost listed structure.”

“The fund will invest in a diversified portfolio of 30-35 quality Australian shares which we believe have the ability to both pay an attractive level of dividend income and grow in value over the long-term,” said Mr Murray.

“We are aiming to provide investors with an attractive, tax efficient income stream, greater than that offered by alternatives such as term deposits and fixed income and the overall stock market. The portfolio is initially aiming to target a 7% per annum dividend yield including franking credits and after fees.[1]”

The ETMF structure will offer investors greater liquidity than an unlisted managed fund, as units can be bought or sold on the Australian Securities Exchange, just like buying or selling shares.

The lead portfolio manager of the fund is Stephen Bruce, who has 17 years’ experience in Australian shares funds management with Perennial Value.  The team comprises 15 investment professionals with an average of 16 years’ experience managing and analysing Australian shares.

The fund will be offered via a general offer and also through an initial public offering (IPO) which will open in Q2, seeking to raise a minimum of $50 million and up to $250 million from investors in Australia and New Zealand at an application price of $4.00.


[1] This is a target in the first financial year but may change over time.

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