Investors Mutual Limited (IML) has launched a new listed vehicle—the Investors Mutual Equity Income Fund – Complex ETF (ASX: EQIN)—to meet the growing demand among Australian retirees for consistent income with lower volatility.
The ETF provides direct ASX access to IML’s long-running Equity Income Fund, which has delivered an average annual income of 9.4% (including franking) since its 2011 inception, significantly outperforming the ASX 300 Accumulation Index's 5.9% over the same period. The Fund aims to deliver income at least 2% above the ASX 300 on a rolling four-year basis while maintaining lower volatility.
“It’s becoming harder and harder for people to get consistent income to fund their retirements with interest rates and ASX dividend yields falling (particularly for banks and resources sectors), and bank hybrids being phased out. This fund fills that gap for retirees, giving them consistent income with lower volatility that they can rely on,” IML Portfolio Manager Michael O’Neill said.
EQIN is actively managed and invests in high-quality Australian equities with sustainable and often growing dividends. It also uses conservative options strategies to generate additional income during periods of market volatility.
“Our process of researching and investing in companies is disciplined in order to achieve sustainable returns with lower volatility. We apply a prudent options overlay to diversify our available sources of income, which is particularly helpful when the market is more volatile,” Tuan Luu, also a Portfolio Manager at IML said.
IML is an affiliate of Natixis Investment Managers and has managed Australian equity portfolios since 1998 with a quality-and-value focused approach.