Tax effective income with capital growth |
Dividend Builder is an actively managed portfolio of 15-30 stocks that aims to deliver tax-effective income while preserving and growing capital. Stock selection draws on Antares fundamental research to find the right balance between seeking above benchmark yield and delivering attractive total returns while managing risk.
Whether as a retiree seeking reliable income or an investor aiming to maximise income and potentially grow capital, an Australian equities-based income portfolio can be an attractive solution.
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Franking
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Franking credits attached to dividends can be tax effective, especially for zero tax payers. |
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Regular income
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The majority of ASX 200 listed companies pay dividends twice yearly. |
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Potential capital growth
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Unlike term deposits, there is potential to grow capital from an equities portfolio. |
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Rewards active management
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A passive strategy focusing solely on yield runs the risk of falling into a 'value trap' through buying stocks whose yield looks attractive because the share price has fallen, possibly reflecting lower future earnings and leading to capital erosion. |
Focus on lower turnover and sustainable franked dividends
Simple, transparent, repeatable process built on fundamental research since 2005
| Core Stocks | Tactical Stocks |
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The portfolio management team use Antares seven step investment process to build the Dividend Builder portfolio. Steps 1-4 are common to all Antares portfolios and involve selecting Antares highest conviction stocks. From this universe the Dividend Builder portfolio management team classify the stocks into two categories – Core and Tactical. Core stocks are larger and longer-term holdings that typically meet the criteria of having above benchmark grossed up and sustainable dividends. Tactical stocks may not have high franked yields but may offer greater short to medium term capital returns. The team construct the portfolio based on the yields, valuations and degree of conviction and establish its expected return and yield. The final step is to align this with the strategy’s objectives which may involve adjustments to stock weights and the inclusion of some additional risk-oriented exposure including ESG to arrive at the optimal portfolio. This is on an ongoing process.
Portfolio Manager
Andrew Hamilton: B.E. (Hons), CFA
Industry Experience: 27 years industry experience
Antares Tenure: 23 years
Deputy Portfolio Manager
Jennifer Lam: B. Law & B. Com (Hons), CFA
Industry Experience: 20 years
Antares Tenure: 10 years
Inception: September 2005
Objective: The strategy seeks to deliver regular tax-effective income by identifying and investing in companies with sustainable, and where possible, franked dividends and provide moderate capital growth over rolling five-year periods.
Benchmark: S&P / ASX 200 TR Index
Management style: Concentrated, high conviction, low turnover, large cap strategy
Recommended time frame: The strategy is designed for investors who are looking to make a medium to long-term investment, with at least a 5-year timeframe.
Managed fund fees
Management fees: 0.6%pa
Number of holdings: 13-25 stocks (max 30)
Risks
The significant risks of investing in the Fund and SMA are typical of the risks of managed investment schemes whose investment strategy is to invest in a diversified portfolio of Australian companies. These risks include market risk, company specific risk, concentration risk, derivatives risk, liquidity risk, fund risk and investment manager performance risk. Further information on these risks is detailed in the Fund's Product Disclosure Statement.
APIR Code Managed Fund: PPL0002AU
Platform availability
Dividend Builder Fund: North, Expand Extra, Rhythm, BT Panorama, Macquarie, Praemium, Power Wrap, Hub24, uXchange, Findex / Centric
More fund information, Investment approach, How to Invest and Resources >
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Fixed Income: 1300 738 355
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An investment in any products offered in any PDS or IM available from this website are subject to investment risk, including possible delays in repayment of capital and loss of income and principal invested. The capital value, payment of income and performance of any such products are not guaranteed, and nor any other member of the Insignia Financial group of companies (comprising Insignia Financial Holdings Ltd ABN 49 100 103 722 and its related bodies corporate) (Insignia Financial Group) guarantees the repayment of capital, payment of income or the performance of any investment.
