DNR Capital Australian Equities Income Fund added to BT Panorama menus


Scott Kelly

Leading Australian equity fund manager DNR Capital has announced that its Australian Equities Income Fund has been added to BT Panorama’s superannuation and investment menus.

The DNR Capital Australian Equities Income Fund1 seeks to identify quality medium to long-term investments delivering sustainable, growing income. The Fund seeks to invest in a selection of securities that have sustainable dividend capability, strong profit-to-cash conversion and relatively assured earnings growth.

Scott Kelly, Portfolio Manager for the Fund adds: “Assessing a company’s dividend sustainability is core to our Income Fund. We look for quality companies that can demonstrate the ability to sustain and grow dividends over time.”

The Fund has a concentrated portfolio of up to 30 stocks, with a focus on quality companies that produce above-average income and associated franking credits.

Since it was launched in March last year, the Fund has returned 33.06%, compared with a return of 16.16% for the Fund benchmark, the S&P/ASX 200 Industrials Accumulation Index to 31 March 2021.

Kelly says it a good time for investors looking for dividend income. During the pandemic, boards cut dividends to preserve capital. This resulted in a greater than 30% fall in dividend per share (DPS) for the ASX 200.

“With the economic recovery underway and operating conditions improving, earnings are also recovering, and boards have started reinstating more generous payout ratios. Energy and Financials performed best during the recent reporting season, with Financials seeing the largest proportion of upgrades. As a result, average one‑year forward dividend expectations rose 1.4%,” says Kelly.

BT Panorama was the winner in three categories in Investment Trends’ 2020 Platform Competitive Analysis and Benchmarking report: best client portal, online business management and best mobile platform.

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