MF – INC – Investor Managed Fund

DNR Capital Australian Equities Income Fund

The DNR Capital Australian Equities Income Fund is designed for investors who are seeking a greater level of income and who can make use of franking credits.

Introduction

Introduction to the DNR Capital Australian Equities Income Fund.

Investment philosophy

DNR Capital believes a focus on quality companies will enhance returns when it is combined with a thorough valuation overlay. DNR Capital seeks to identify quality companies that are mispriced by overlaying our quality filter, referred to as the ‘quality web’, with a strong valuation discipline. The investment strategy of the Fund is intended to result in a concentrated portfolio that is high conviction, after-tax focused and invests for the medium-to-long term.

Investment strategy

The DNR Capital Australian Equities Income Fund has an investment style best described as ‘style neutral’ with above-average income and associated franking credits. The stock selection process has a strong bottom-up discipline and focuses on buying quality businesses at reasonable prices.

The Fund seeks to identify quality medium to long-term investments delivering sustainable, growing income. The Fund seeks to invest in a selection of securities that have high and sustainable dividend capability, strong profit-to-cash conversion, and relatively assured earnings growth.

We define quality companies as being those companies with the following attributes:

  • Superior industry position
  • Earnings strength
  • Dividend sustainability and growth potential
  • A sound balance sheet
  • Strong management
  • Low environmental, social and governance (ESG) risk.

Where we are satisfied that a company possesses quality characteristics then it is eligible for inclusion in the portfolio. However, it must also represent value and sit comfortably within our portfolio construction requirements.

A range of valuation methodologies are used depending on the nature of the company being assessed to identify mispriced opportunities.

The portfolio construction process considers stock weightings based on the risk versus the expected return. It is also influenced by a top-down economic appraisal, sector exposures and liquidity considerations.

For more information on the DNR Capital Australian Equities Income Fund, please contact us on info@dnrcapital.com.au or refer to our monthly report below:

Disclaimer

The information in this website relating to the Fund has been prepared by DNR Capital Pty Ltd, AFS Representative - 294844 of DNR AFSL Pty Ltd ABN 39 118 946 400, AFSL 301658. It is general information only and is not intended to be a recommendation to invest in any product or financial service mentioned above. Whilst DNR Capital has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and you must make your own enquiries concerning the accuracy of the information within. The information in this document has been prepared for general purposes and does not take into account the investment objectives, financial situation or needs of any particular person nor does the information constitute investment advice. Before making any financial investment decisions you should obtain legal and taxation advice appropriate to your particular needs. Investment in the Fund can only be made on completion of all the required documentation. The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL No 235150 (as part of the Perpetual Limited group of companies) is the issuer of the PDS for the Fund. An investor should obtain and read the PDS and consider their circumstances before making any investment decision. The PDS is available at the Fund website at https://dnrcapital.com.au/individual-investors/inc-mf-how-to-invest/, or a paper copy can be obtained, free of charge, upon request by calling DNR Capital Pty Ltd ("Manager"), the investment manager of the Fund. This material is general information only and not an investment recommendation. The Manager or The Trust Company (RE Services) Limited does not guarantee of the repayment of capital from the Fund or the investment performance of the Fund.
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