Boutique Australian equities manager Merlon Capital Partners has announced it will be tailoring its distributions to provide investors with more regular and reliable income streams through monthly distributions.
Announcing the move this week, Merlon chief executive Neil Margolis said the monthly distributions would be effective from July 2012.
He said changing the frequency of income distributions on the Merlon Wholesale Australian Share Income Fund from quarterly to monthly had been designed to better align the fund with the income needs of post retirement investors.
"Most managers seek to maximise total returns from equities with less regard for the income component. This means their returns have historically been skewed towards growth, which has been more volatile," Margolis said.
"Our investment approach – with a focus on sustainably higher yielding equities, together with options to manage downside risk – gives us extra ability to generate regular tax-effective income with confidence and provide investors with a regular income stream vital for funding their retirement."
