The fund, which was launched in March last year and had returned 33.06%, seeks to invest in a selection of securities with sustainable dividend capability, strong profit-to-cash conversion and relatively assured earnings growth.
The fund has also a concentrated portfolio of up to 30 stocks, with a focus on quality companies that produce above-average income and associated franking credits.
“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%,” Scott Kelly, portfolio manager for the fund said.
