Recommended rating awarded to Ausbil Active Dividend Income Fund

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As interest in higher-yielding income increases, Zenith has awarded the Ausbil Active Dividend Income Fund a timely ‘Recommended’ rating.

Zenith said “Ausbil’s focus on the sustainability of dividends, rather than high dividends, is a key attraction of the Fund.”

“Ausbil’s investment process is robust, incorporating macro-economic indicators, a sound valuation process and intuitive qualitative inputs.”

The ratings agency added that the fund’s portfolio manager, Michael Price, was well qualified to manage the Fund, given his expertise and experience managing equity income portfolios.

Ausbil said the Ausbil Active Dividend Income Fund combines a core and tactical allocation approach to generating higher dividend income paid to investors in monthly distributions.

“In this low rate environment, and with people living longer in retirement, investors need diversified and higher income sources, with the potential over the long term for capital to grow,” said Mr Price.

“With an active dividend approach we are able to generate monthly distributions rather than half-yearly,” he said. “This benefits investors seeking regular income who used to hesitate at the traditional half-yearly structure of distributions.”

“The dividend income market is transforming,” noted Mark Knight, Head of Distribution at Ausbil. “Income investors like SMSFs, retirees, and investors approaching retirement can diversify away from traditional sources of income like fixed income and term deposits towards higher yielding retirement income funds.”

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