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First Sentier Investors

  •   22 October 2020

First Sentier Investors’ Equity Income Fund receives Morningstar upgrade

Thursday, 22 October 2020: First Sentier Investors’ CFS Equity Income Fund Class A (the Fund) has received the Morningstar Analyst RatingTM of ‘Silver’ as of 6/10/20, it was announced today.

The Fund, which invests in Australian equities to deliver sustainable income to investors, received the rating upgrade after delivering consistent performance and above-index returns.

The Morningstar Global Fund Report research report stated: “First Sentier Equity Income offers investors soundly managed Australian equity exposure with consistent above-index income.” It also notes, “From its launch as a standalone strategy in March 2008 to the end of August 2020, FSI Equity Income has returned 5.97% per year, which is well ahead of the category average and marginally ahead of the index.”

The report noted the “collaborative approach and complementary skill set” of the team, whose three senior members are Rudi Minbatiwala, Jason Moodie and Marlon Chan.

First Sentier Investors’ Head of Equities Income, Rudi Minbatiwala, said, “We are pleased to be recognised for delivering consistent outcomes for investors over more than twelve years.

“The Fund’s investment strategy identifies stocks across the broader share market which are likely to outperform, and does not rely on high-dividend, low-growth stocks to generate income. The report noted that the Fund’s “total-return approach and non-reliance on traditional dividend payers has historically provided better downside protection.”

Mr Minbatiwala said, “We take a more holistic view of the investment options available to us, considering total returns and long term earnings growth, in addition to dividend income. This somewhat unconventional approach provides the flexibility to be invested in the right stocks, at the right time, at the right price during different market conditions.

“The strategy was first put to the test during the GFC and delivered the downside protection we expected. More recently, in the face of 2020’s dividend cuts and market volatility, our strategy provided a downside cushion and attractive levels of income. We know that both of these things are a priority for many investors in the current economic climate and are pleased to be able to provide this option.”



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