Are you the type that applies sunscreen before you get exposed to the summer sunshine, or do you prefer to wait a while and apply
September 16, 2019
Income from equities
with a focus on
capital preservation
The challenge for Australian income investors
0
%
Increase in living costs p.a. for comfortable retirement1
0
%
Decline in term deposit rates2
0
%
Vertium income yield projected
over the medium term p.a.
over the medium term p.a.
Are you an investor wanting exposure to the equity market, but concerned about the loss of significant capital if markets decline?
The Vertium Equity Income Fund may be for you. It is designed to provide an attractive income stream of 6-8% p.a. through the market cycle, with a focus of lowering the risk and magnitude of any drawdown of your capital.
Capital preservation focus
Vertium has low market risk sensitivity (beta)
Attractive income yield
Dividends, franking credits plus conservative option income sustains high level of income
Defensive portfolio allocation
May be blended with other equity strategies, to potentially lower overall portfolio risk
The case for Vertium
Why equities?
Equities can offer investors a blend of yield, liquidity, franking and total returns that no other asset class can provide. But equity markets can be volatile, creating a difficult choice if you need higher income.
Why low risk equities?
By reducing the sensitivity of the equity investment to the equity market (known as Beta), the risk of capital loss can be reduced. This may potentially limit downside loss and help extend the lifetime of a retirement portfolio by many years.
Who is the fund designed for?
> Retirees and conservative investors
> Self-managed super funds
> Institutions seeking lower-risk diversification
Why Vertium for equity income?
Focus on capital preservation
Vertium has the lowest market risk sensitivity (beta) compared to peers3
Our Experience
An experienced Sydney-based fund manager with a long term industry track record
Equity income is all we do
One of the few equity income specialists in Australia, with a 100% focus on low-risk equity income
Committed to service your needs
Supported by its distribution and business partner Copia
Vertium CIO Jason Teh provides a wrap-up for the most recent quarter
Reducing equity market sensitivity may help preserve capital!
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Meet the team
Jason Teh
Chief Investment Officer
MFin, BSc
Tomas Vasquez
Portfolio Manager / Equity Analyst
BEng, MAppFin, CFA
Daniel Mueller
Portfolio Manager / Equity Analyst
BCom, GDipAppFin, CA, CFA
Trent Crawley
Equity Analyst
BCom, CAIA, CFA
Platform availability
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- Based on ASFA Retirement Standard benchmark for comfortable retirement now $61,061pa for couple – 4 years to March 2019
- Source: RBA, based on $10,000 deposit for 12 months over past 9 years
- Source: Morningstar Direct comparison of Australian Equity Income Funds from the period April 2017 to July 2019, after fees. Past performance is not a reliable indicator of future performance.
Vertium Asset Management Pty Ltd is a corporate authorised representative (CAR) of Copia Investment Partners Ltd.
This document is for general information purposes only and does not take into account the specific investment objectives, financial situation or particular needs of any specific reader.
As such, before acting on any information contained in this document, readers should consider whether the investment is suitable for their needs. This may involve seeking advice from a qualified financial adviser. Copia Investment Partners Ltd (AFSL 229316, ABN 22 092 872 056) (Copia) is the issuer of Vertium Asset Management’s (Vertium Asset Management Pty Ltd ABN 25 615 639 659) portfolios. It is important readers carefully consider the risks of investing in the Vertium Equity Income Fund and that they understand the value of investments will vary over time, the level of returns will vary and future returns may differ from past returns, returns are not guaranteed and investors may lose some, or all, of their capital, laws affecting registered managed investment schemes may change in the future, and the level of risk for each investor will vary depending on a range of factors including age, investment time frames, where other parts of an investor’s wealth is invested and an investor’s risk tolerance. To invest, contact Copia on 1800 442 129 or email clientservices@copiapartners.com.au or visit vertium.com.au. Any opinions or recommendations contained in this document are subject to change without notice and Copia is under no obligation to update or keep any information in this document current.
The Lonsec Rating (assigned October 2017) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Vertium Asset Management product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: http://www.lonsecresearch.com.au/research-solutions/our-ratings