PacReef Income Today Portfolio
An Australian Equity Income Portfolio
The Income Today Portfolio is designed for investors seeking a growing income stream over time with below market volatility from income producing Australian securities.
The PacReef Income Today Portfolio invests in high quality ASX-Listed securities with the objective of generating a tax-efficient, growing income stream. It does this by investing in a diversified portfolio of securities that have the potential to increase their dividends or distributions.
The Portfolio is suitable for those looking to invest in Australian shares, and other ASX-Listed securities, to produce a passive income stream. You can choose to either draw the income to fund your lifestyle now, or re-invest the income to grow your wealth.
The Portfolio will not invest in securities classified as being part of the Mining Industry or securities not listed on the ASX. It has an objective to outperform the ASX All Ordinaries Accumulation Index by 2% per annum, before fees, over a rolling 5-year period.
The Portfolio does not depend on movements in share prices to generate an income for investors. Instead it invests in ASX- Listed securities that the managers believe will produce a growing income stream. The managers also target high levels of franking credits and low turnover to further enhance the after tax income from the Portfolio.
This does not mean the Portfolio is not seeking long term capital growth, but rather than the primary objective is to produce a growing, passive, income stream for investors. The managers believe that it is the income stream that will allow investors to retire and fund their lifestyle.
The Portfolio has a concentrated portfolio of ASX-Listed securities, generally holding 20-30 securities, across a diversified range of industries & sectors. Unlike many Managed Funds, the Strategy is Index unaware allowing it to exclude securities that it believes will produce poor returns.
The managers believe deciding which securities to not hold is just as important as deciding which to hold in generating superior returns for investors.
PacReef’s Income Today Portfolio is offered as a Separately Managed Account (SMA) via the HUB24 Invest platform and as a model portfolio on the HUB24 Super platform.
Glen Killen is engaged by PacReef Asset Management as the Program Manager for the Income Today Portfolio. Glen is also a shareholder of PacReef Asset Management Pty Limited.
|Managed Portfolio||PacReef Income Today Portfolio|
|Portfolio Manager||The portfolio manager is PacReef Asset Management Pty Ltd (ABN 95 601 146 525, AFSL 488045) (‘PacReef’). The portfolio manager is responsible for designing and managing the composition of this managed portfolio to meet the investment objectives and investment strategy detailed below.|
|Execution of investment strategy||HUB24 is responsible for implementing the investment instructions of the portfolio manager, by buying and selling of investments, taking into consideration, timing, trading costs (such as brokerage and currency costs, if applicable) and the mandate of the portfolio. HUB24 has the right to vary the managed portfolio, as set out in the IDPS Guide.|
|Minimum initial investment||No minimum|
|Designed for||The PacReef Income Today Portfolio is designed for investors seeking a growing income stream over time with below market volatility from income producing Australian securities.|
|Investment objective||The primary aim of the portfolio is to achieve a growing income stream, including franking credits, from the investments held. The overall objective of the portfolio is to achieve a total return, including capital gains, equal to or greater than 2% p.a. above the benchmark, before fees, over rolling 5 year periods.|
|Investment strategy||The portfolio uses a bottom-up value investing approach to identify the appropriate securities to be held. This investment approach aims to identify a diversified mix of securities that produce a growing income stream purchased at fair, or below fair value. The portfolio will invest in ASX Listed securities and Cash within the asset allocation ranges set out below. Refer to the ‘Investment strategy and process’ section below for further details.|
|Investment universe||ASX Listed Equities (excluding those classified as being within the GICS sectors of Energy or Metals & Mining), ASX Listed Real Estate Investment Trusts, ASX Listed Hybrid Securities and Cash.|
|Benchmark||ASX All Ordinaries (TR) (formerly known as the ASX All Ordinaries Accumulation Index)|