Reduced volatility. Tax efficient income.
What the Macquarie Dividend Run-Up Fund offers
Please note: this Fund is now closed to applications. Please contact your financial adviser for more information.
Access dividends and potential stock price outperformance
Benefit from a risk management overlay
Tax efficient income
Generate tax efficient income with potential access to franking credits
Meet the managers
23 Dec 2016
Portfolio Managers Cameron Gleeson and Mark Lovegrove discuss the features of the Macquarie Dividend Run-Up Fund.
About the Macquarie Dividend Run-Up Fund
About the fund
The Macquarie Dividend Run-Up Fund aims to outperform its benchmark over the medium term (before fees) on a pre and post-tax basis. The Fund's benchmark is made up of 30% S&P/ASX 100 Accumulation Index and 70% Bloomberg AusBond Bank Bill Index, rebalanced quarterly.
The Fund invests in high yielding Australian stocks in order to take advantage of pricing anomalies around stock dividend periods.
The investment team identifies stocks which it expects will either increase in value in the lead up to their ex-dividend date or will fall in price by less than the value of the cash dividend paid on their ex-dividend date.
Stocks are selected through a combination of quantitative screening and qualitative factors. The investment team actively optimises the Fund's portfolio allocation throughout the year, seeking to maximise yield and exposure to stock dividend periods.
The Fund provides you with the opportunity to earn total returns through distributions from dividend income (with potential franking credits attached) as well as any trading gains.
The Fund's risk management overlay also gives you greater protection and lower volatility compared to a direct investment in the equities market.
Read more about the Dividend Run-Up Fund in the Product Disclosure Statement.
How the Macquarie Dividend Run-Up Fund works
The dividend run-up phenomenon historically shows that, on average, stocks have made abnormal positive returns (relative to the market) around their earnings, dividend announcement and ex-dividend dates.
The Fund has been constructed to capitalise on this phenomenon by providing investors, including SMSFs*, with exposure to high yielding Australian stocks.
1 Subject to the investor's eligibility to claim franking credits.
* Subject to the obligation of the trustees of SMSFs to formulate and implement an appropriate investment strategy that has regard to the whole of the circumstances of their fund and to act in the best interests of members of the fund.