(L to R): Michael O’Neill & Tuan Luu

IML’s Equity Income Fund (the ‘Fund’) is now available to trade via the ASX, after launching yesterday as the Investors Mutual Equity Income Fund – Complex ETF (ASX: EQIN).

The new, actively managed ETF aims to deliver Australian retirees and income-focused investors access to steady income generated through a diverse range of sources. It invests in stocks with sustainable and often growing dividends, and employs conservative options strategies to take advantage of share market volatility to enhance income.

The launch comes at a pivotal moment for Australia’s retirement system, which now holds more than $4 trillion in superannuation assets and is projected to be the second largest in the world by 2030. With Australia’s superannuation system transitioning hundreds of billions into the pension phase over the next five years, demand is growing for income-focused strategies like IML’s Equity Income Fund and ETF.

The ETF is a new class of units in the IML Equity Income Fund, which has built a 14-year track record of delivering consistent income with lower volatility since its inception in 2011. Over this period, the Fund has achieved an average annual income of 9.4% (including franking), compared with 5.9% from the ASX 300 Accumulation Index (including franking). Its objective is to provide income at least 2% above the ASX 300 on a rolling four-year basis, while maintaining lower volatility than the broader market.*

Speaking about the newly launched ETF, IML Portfolio Manager, Michael O’Neill said: “It’s becoming harder and harder for people to get consistent income to fund their retirements with interest rates and ASX dividend yields falling (particularly for banks and resources sectors), and bank hybrids being phased out. This fund fills that gap for retirees, giving them consistent income with lower volatility that they can rely on.”

Tuan Luu, Portfolio Manager at IML said: “Our process of researching and investing in companies is disciplined in order to achieve sustainable returns with lower volatility. We apply a prudent options overlay to diversify our available sources of income, which is particularly helpful when the market is more volatile.”

IML is an affiliate of global multi-affiliate manager Natixis Investment Managers. It is a quality and value style Australian equities fund manager with a single-minded focus on achieving attractive long-term returns for clients, with lower volatility than the market. Since 1998, IML has used deep fundamental research to uncover high-quality companies trading at reasonable valuations. IML (AFSL 229988) is the issuer of the Fund and ETF.

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Sally Loane

The Financial Services Council has brought together some of Australia’s leading industry and social services experts to discuss the public policy challenges and issues arising from the financial abuse of older Australians.

Sally Loane, CEO of the FSC said: “As the intergenerational report released earlier this year has shown, we will all be living longer. Most Australians born today will live well into their 90s, thanks mainly to advancements in health and medicine.”

“While there is an upside ̶ we will get to enjoy our lives for longer ̶ there is a downside ̶ the longer we live, the more chance we will have of experiencing deteriorating mental and physical health,” Ms Loane said.

“We need to identify and discuss one of the emerging problems associated with cognitive decline – the fact that some older Australians are suffering financial abuse.”

“As the wealth management industry responsible for helping Australians grow and protect their wealth, it is important that we understand how to identify, understand and tackle these complex issues,” Ms Loane told the Elder Financial Abuse Symposium today (Monday).

Research from Alzheimer’s Australia shows there are 1,800 new cases of dementia in Australia each week, or one person every six minutes. This is expected to grow to 7,400 new cases each week by 2050.

“It’s a public debate that we have to have,” Ms Loane said.

“There is currently a NSW Upper House Inquiry into elder abuse, and organisations such as National Seniors, Alzheimer’s Australia and the Australian Human Rights Commission have been instrumental in bringing this debate to the fore.”

“We know that exploitation of the elderly is multi-faceted, and often involves emotional and physical harm. It is important that we consider all facets of this challenge, including the fact that people can be exploited for their assets,” Ms Loane said.

The FSC Elder Financial Abuse Symposium has brought together a high level panel of experts including:

• Sally Loane – CEO, Financial Services Council
• The Hon Susan Ryan AO – Age & Disability Discrimination Commissioner
• The Hon John Watkins AM – CEO, Alzheimer’s Australia
• Michael O’Neill – CEO, National Seniors Australia
• Imelda Dodds – CEO, NSW Trustee & Guardian
• Craig Dent – CEO, State Trustees
• Rob Critchlow – Detective Superintendent, NSW Police, and
• Mary Ciantar – Consultant, NSW Elder Abuse Helpline.

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