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
About the Macquarie Dividend Run-Up Fund
About the fund
The Macquarie Dividend Run-Up Fund employs a specialist investment strategy designed to provide tax effective equity income at lower levels of volatility than traditional equity funds. The Fund achieves this by capitalising on the dividend run-up phenomenon via high yielding stocks that have been selected using the investment team's rigorous methodology.
The potential benefit of franking credits also provides you with a tax efficient investment (subject to the investor's ability to claim franking credits). While daily liquidity means you can access your investment when you want.
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.
- Investors seeking exposure to Australian equities but with some downside protection
- Investors who have a total return focus
- Investors who want to access franking credits (though subject to the investor's eligibility to claim franking credits)
- Investors wanting an asset allocation tool to diversify an existing investment portfolio through lower correlation to traditional equity market returns
- Investors wanting a managed alternative to direct investment in high yielding Australian stocks.
Why choose Macquarie?
- Quality service
- Our service is informed, friendly, professional and reliable.
- A better way to build your wealth
- Partner with specialist investment experts to help build your wealth.
- More opportunities
- We're committed to bringing you world class investment strategies.