Blackwattle Investment Partners has launched an Equity Income fund, run by an investment team formerly at First Sentier Investors.
It was announced in October that the investment firm had hired Rudi Minbatiwala, Jason Moodie, and Marlon Chan from First Sentier where they had worked together for 17 years on its Equity Income strategy.
However, FSI announced in 2024 that it would no longer be supporting its Equity Income Fund amid the closure of four investment teams following a strategic review which prompted the manager exit.
Blackwattle has now launched its first vehicle for the team and first equity income offering for the firm; Blackwattle Equity Income.
The Blackwattle Equity Income fund offers access to an actively managed Australian equity income strategy focused on delivering consistent income across market cycles. Investing in listed Australian equities beyond traditional dividend-paying stocks, the strategy also utilises equity options to help generate regular income through a range of market conditions.
The fund is constructed with a strong focus on risk awareness and income resilience, using active portfolio management and options strategies to help moderate volatility and manage downside risk while maintaining exposure to Australian equity markets.
Portfolio manager Minbatiwala commented: “Our Blackwattle Equity Income Strategy allows us to own high-quality companies first, then shape and enhance the outcome with options – aiming for steadier distributions at lower risk.
“The retirement ask is clear: high income that is sustainable, stable, and accessible. That’s the design brief behind our strategy.”
Blackwattle managing director, Michael Skinner, said: “We believe that Australia is shifting from saving to spending, for the growing retiree market, the next decade is about consistent and secure income that you can live on.
“Our Equity Income fund is built to generate resilient income, not chase it – combining dividends, franking credits and option premium income to target 6-12 per cent per annum while managing downside risk.”
Last year, founding portfolio manager Ray David departed the firm after two years on its Large Cap Quality and Long-Short 130/30 Quality funds. Originally joining with his colleague Joe Koh after 11 years at Schroders, David has now taken up a position at Australian equity house Airlie Funds Management which is owned by Magellan.
