Value Shares for Income
(Formerly known as the Perennial Value High Yield Shares Trust)
The Trust provides an actively managed exposure to a portfolio of shares that offer a consistent cash dividend and a high level of franking credits.
Trust Objective
To provide investors with an attractive level of tax effective income, paid via quarterly distributions. The Trust aims to provide a dividend yield, adjusted for applicable franking credits and before fees, above that provided by the S&P/ASX 300 Accumulation Index measured on a rolling three- year basis.
Suitable Investor Profile
This Trust may be suitable for investors with an investment horizon of five or more years, who are seeking regular tax effective income through the provision of quarterly distributions.
Fund Facts
Investment Approach
Perennial Value invests by applying a "value" investment style. Perennial Value seeks to buy "good businesses that are undervalued" with an underlying belief that good businesses are always eventually recognised by markets and are positively re-valued. The portfolio consists of businesses which have these characteristics as well as providing a high dividend yield.
Investment Strategy
The Trust will invest in a well diversified range of publicly listed companies on the Australian stock exchange, which Perennial Value, the investment manager, believes have the ability to pay a consistent level of franked dividends and which demonstrate financial soundness. Equity investments may include Australian listed property trusts and listed investment companies.
In order to provide a 'true to label' high yield portfolio, Perennial Value applies stringent screening criteria to the equity investments in order to create a pool of high yielding stocks. Fundamental company research is then applied in order to select a portfolio of companies which have a track record of paying a consistent level of franked dividends and which demonstrate a sound financial position. Perennial Value will aim to keep the Trust's net realised capital gains to a minimum.
The portfolio will hold in the range of 20 to 70 stocks.
The Trust will attempt to be fully invested at all times, with a cash exposure not exceeding 10%.
The Trust is authorised to utilise derivative instruments for risk management purposes, subject to the specific restriction that they cannot be used to gear portfolio exposure.
Please note:
It is a provision of the Trust's constitution to be able to invest into international shares and international property trusts. Since the Trust's inception it has only ever invested in Australian shares. As such, Perennial Value Management Ltd has made the decision to remove these international provisions. The result is a simpler investment option for our clients.