Dividend Income Option
The Dividend Income Option’s Objective
This investment option aims to offer investors a high-conviction portfolio of S&P/ASX 200 companies which have sound balance sheets, reliable cash flows and high consistent dividends. 1
Investment Option's Features
- Active pool of income producing assets;
- Daily unit pricing;
- Access a regular investment plan and/or compounding reinvested distributions;
- Investment specialist(s);
- Franking Credits;
- Competitive fees; and
- Capital growth style assets.
Investors should be seeking a relatively medium level of capital security from a well diversified portfolio of ASX listed securities and cash.
This investment option is designed for investors seeking consistent income and steady capital growth. Portfolio turnover is minimised in order to limit the number of taxable gains or losses in any year and providing investors with some franking credits.
Investment timeframe
Investors may make an investment for a timeframe that suits them subject to the terms of our PDS.
This investment option intends to invest in the following asset allocations:
| Asset Classes^ | Minimum | Maximum | Target |
| Securities | 0% | 95% | 90% |
| Cash and equivalents | 10% | 100% | 10% |
Investment Approach
This investment option focuses on “income.” Millinium focuses on identifying companies which generate consistent dividends because of the strength of their balance sheets, cash flows and fundamental business. Each company in the portfolio should have (but is not guaranteed to have) a forecast dividend yield higher than the S&P/ASX 200 average. The stock selection process also takes into account each company’s long term history and sustainable future prospects. As part of the valuation process, “buy” and “sell” prices are set for each company. This is a “high conviction” portfolio composed of only 10 to 15 stocks, but risk is controlled by incorporating fundamental and statistical correlation analysis as a key part of the portfolio construction process. The portfolio is expected to at least maintain its worth in real terms, i.e. to grow faster than inflation.
Key features of this investment option for investors:
| APIR Code | EXP0007AU |
| Morningstar ticker code | 19088 |
| Investor Type | All investors |
| Minimum Initial Investment | $5,000 (in one or more investment options) |
| Minimum Additional Investment | None |
| Minimum Ongoing Balance | $2,000 |
| Minimum Redemption | $1,000 (subject to maintaining the Minimum Ongoing Balance) |
| Indicative Investment Timeframe | >2 years |
| Distribution Frequency | Quarterly |
| Regular Investment Plan | Yes |
| Distribution Reinvestment Plan | Yes |
| Management Fee^^ | 0.70% p.a. of portfolio’s net assets payable monthly in arrears. |
| Buy/sell Spread | +/- of up to 0.30% |
| Expense Recovery Fee* | 0.10% (estimate) |
| Unit Price# | Daily |
| Withdrawal Timing | Quarterly |
| Unit Class | D1 |
Disclaimer: © Millinium's Multi-Strategy Fund ARSN 125 878 015 (“Fund”) is issued by Millinium Capital Managers Limited, ABN 32 111 283 357, AFSL No. 284336 (“Millinium”). This document does not constitute personal advice. Investors should consider obtaining professional advice as to whether this financial product suits their objectives, financial situation or needs. Investing in the Fund or its investment options can only be made by completing an application form attached to a current Product Disclosure Statement (“PDS”), and submitting it to our Sydney office. Investors should consider the PDS before investing and speak to their Financial Planner. ^This investment option’s target allocation is a target only and may change without notice. The asset allocation may be more or less than the target allocation in the Fund's PDS. ^^Management Fees and expenses are deducted from the sub trust for each investment option of the Fund. *This is an estimate based on subscriptions but costs could be higher. # The unit price is subject to adjustment. Please see the section "Unit pricing and the value of your investment" in the PDS. Returns are not guaranteed. Any past performance information or up to date returns posted on the website at www.millinium.com.au under the "Product Performance" tab, should not be taken as a reliable guide to future performance of the Fund or this investment option. Please note that returns are rolled up into the unit prices calculated for each unit class/investment option of the Fund. Please refer to the Terms of Use on our website for full details of use and our disclaimers. This document may be amended, withdrawn or replaced without notice. Please see the PDS for full details on the Fund from our website at www.millinium.com.au or speak to Investor Services on 02 8012-8650 to obtain a copy of the PDS.
