Zurich Investments Equity Income Fund
The Zurich Investments Equity Income Fund is an income focused Australian equities fund. By investing in blue chip shares and using conservative derivatives strategies it seeks high and regular levels of income and lower volatility than other equity funds.
Fund objectives
The fund aims to:
- deliver 10% income p.a. in all market conditions
- provide some downside protection in falling markets
- provide conservative growth over a three to five year cycle.
Investment strategy
The Fund invests in a range of shares listed on the Australian Stock Exchange and maintains a portfolio of exchange traded options over these shares and equity index futures in order to increase income and reduce investment risk.
Key features and benefits
| Features |
Benefits |
| Regular income, some capital growth and some downside protection. |
Participation in equity returns without same level of volatility. |
| Broad exposure to leading Australian shares. |
Delivery of a primary income stream from dividends. |
| Managed by a team of Australia’s leading derivatives experts, including Dr Hugh Denning. |
Highly innovative approach to generating income that is not based on debt/mortgage-backed securities. |
| Active option management to generate additional income, manage risk and control market exposure. |
Not exposed to the risk of default on high yield debt securities which can occur in high interest rate environments. |
About the manager
Zurich Investments forms strategic investment partnerships with exclusive managers to provide investors with access to quality investment managers recognised as being the best of their area of expertise. The Zurich Investments Equity Income Fund is managed by our strategic investment partners Denning Pryce Pty Ltd. Denning Pryce is a boutique asset management company, established in 2006. The principals are acknowledged experts in derivatives markets, with over fifty years of combined experience in the securities industry.
How the Fund works
The Fund’s investment approach is based on buying and selling exchange traded options over Australian shares and equity index futures. The process involves three main steps:
Vision impaired users can call 131 551 for a verbal description of this chart.
Who is it suitable for?
The Fund is suited to investors seeking:
- consistent, monthly income; retirees and wealth accumulators
- some downside protection
- some tax advantaged income stream (some franked returns)
- an alternative to traditional mortgage trusts.
At a glance - Zurich Investments Equity Income Fund
| Investment style |
Alternative equity |
| Investment universe |
S&P/ASX 200 Accumulation Index |
| Target return |
Aims to deliver 10% income p.a. plus some capital growth and downside protection |
| Tracking error |
n/a |
| Suggested investment timeframe |
Five years |
| Benchmark |
S&P/ASX 50 Accumulation Index |
| Number of stocks held |
Up to 50 |
| Access to money |
Available daily |
| Risk profile |
Medium |
| Distribution frequency |
Monthly |
How to invest
Zurich Investments Funds are available directly from Zurich, by completing the application form in the relevant Product Disclosure Statements, below. The funds are also available on a number of external master trusts, for more information contact your financial adviser or call the Zurich Client Service Centre on 131 551.
Disclaimer
Important Information: Investors should always consider the relevant Product Disclosure Statement (PDS) when making decisions about this financial product. The information contains general advice only and no account has been taken as to the financial circumstances, needs or objectives of any person. We strongly recommend that investors consider the PDS and their specific financial needs and objectives with a suitably qualified financial and taxation adviser when committing to decisions about this financial product. The information on this page is specific to the Zurich Investments Equity Income Fund, which is the wholesale class of units in the Zurich Investments Equity Income Scheme (ARSN 121 589 035), which is issued by Zurich Investment Management Limited ABN 56 063 278 400 AFSL 232511, 5 Blue Street North Sydney NSW 2060 (Zurich Investments). The content of this web page is given in good faith and is derived from sources believed to be accurate , which may be subject to change. It should not be considered to be a comprehensive statement on any matter and should not be relied on as such. Neither Zurich Investments Management Limited ABN 56063278400 AFSL 232511 nor any of its related entities, employees or directors give any warranty of reliability or accuracy nor accept any responsibility arising in any way including by reason of negligence for errors and omissions. Applications can only be made on the application form included in the current Product Disclosure Statement.
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