Redpoint IM launches new equity income fund

Damien McIntyre

Boutique equities asset manager Redpoint Investment Management has launched an Australian equity income fund aimed at yield-seeking investors such as self-funded retirees, other low-income tax rate payers as well as the not-for-profit sector.

The Redpoint Australian Equity Income Fund will sit alongside Redpoint’s Tax Effective Australian Share Fund and Australian Industrials SMA strategy, offering investors a life cycle of equity strategies for tax effective saving from wealth accumulation through to retirement. The new fund aims to capture a dividend yield above that of the S&P/ ASX 200 index with a total return greater than the index over the long-term (three to five years).

Redpoint IM chief executive, Max Cappetta, said the ability to deploy the firm’s established quantitative investment capabilities to build a dividend focused strategy comes as Australia’s aging population seeks viable investment solutions to provide adequate income in retirement.

“Investing in Australian equities remains a core exposure for domestic investors driven, in part, through the receipt of tax credits associated with dividend income. Our quantitative approach combines multiple perspectives, including income capture, stock selection, ESG sustainability and tax awareness within one risk managed portfolio.

“Our research and product development work over the past year has shown that capturing income from dividends is best achieved when also taking account of a range of other stock selection insights. This naturally includes the insights we derive from our proprietary sustainability framework,” he said.

Fund manager GSFM acquired a 49 per cent equity stake in Redpoint IM in 2019, with Redpoint’s investment team continuing to control 51 per cent of the business.

GSFM chief executive, Damien McIntyre, said the new fund will provide institutional and retail investors with the opportunity to access proven investment expertise, with a strong focus on capturing income from a diversified portfolio of listed Australian companies.

“Redpoint’s disciplined active approach and the way in which they combine multiple investment drivers within one portfolio will prove attractive for those Australian investors seeking a greater level of income from their equity investments. It’s an opportune time to be bringing this type of product to market,” said Mr McIntyre.