Analyst Q&A: Intelligent Investor Equity Income Portfolio
Income isn’t a theme or trend, it’s a necessity.
When you speak to SMSF investors about selling stocks and taking profit, instead of solely relying on dividends to fund their lifestyle, you can see the expression change on their face. Eating into capital is a proposition best left alone, even though most managers will preach total return.
Not wanting to eat into capital is one thing, but forsaking growth altogether should not be on the agenda for investors in pension mode.
Taking your income and growing your capital base should be the goal of all SMSFs in pension mode. The Intelligent Investor Equity Income portfolio has a current estimated annual yield of 4.32 per cent before franking credits, but it also has an All Ordinaries Accumulation Index outperformance as well.
Wrapping this portfolio up in a Separately Managed Account provides investors with multiple options when it comes to taking that income. You can set up your own regular withdrawal plan, make ad hoc payments as and when you need to, or set up a monthly withdrawal of all income (dividends and interest) received by the portfolio. Or a combination of all three.
Join InvestSMART's Head of Portfolio Services and Analyst, Mitchell Sneddon, Head of Research, James Carlisle, and Deputy Head of Research, Gaurav Sodhi, for a live Q&A on the Intelligent Investor Equity Income Portfolio.
Agenda
- Find out how the team construct the portfolio
- Unconventional income stocks & why they’re in the portfolio
- Latest income stock ideas
- How we think about taking returns to pay for living expenses
- Plus your questions answered
Webinar Details:
2pm (AEST) Wednesday, 10th May.
Frequently Asked Questions about this Article…
The Intelligent Investor Equity Income Portfolio is designed to provide a steady income stream while also aiming for capital growth. It currently offers an estimated annual yield of 4.32% before franking credits and has outperformed the All Ordinaries Accumulation Index.
SMSF investors can benefit from the portfolio by receiving a steady income through dividends and interest, while also aiming to grow their capital base. This approach helps avoid eating into capital, which is crucial for those in pension mode.
Investors can set up a regular withdrawal plan, make ad hoc payments as needed, or opt for a monthly withdrawal of all income received by the portfolio. A combination of these options is also available to suit individual needs.
Forsaking growth can lead to a depletion of capital over time. By focusing on both income and capital growth, investors can maintain their lifestyle without eroding their investment base, ensuring long-term financial stability.
Unconventional income stocks are those that may not traditionally be associated with income generation but offer potential for both income and growth. They are included in the portfolio to diversify income sources and enhance overall returns.
The Intelligent Investor Equity Income Portfolio has outperformed the All Ordinaries Accumulation Index, providing investors with a competitive return while maintaining a focus on income generation.
The live Q&A session offers investors an opportunity to learn about the portfolio's construction, explore new income stock ideas, and understand strategies for using returns to cover living expenses. It's a chance to engage directly with experts and get personalized insights.
You can register for the webinar, scheduled for 2pm (AEST) on Wednesday, 10th May, by visiting the InvestSMART website and signing up for the event. It's a great opportunity to gain deeper insights into the portfolio and ask your questions.
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