FSI fund receives ratings boost
First Sentier Investors (FSI) CFS Equity Income Fund Class A has received a Silver rating from Morningstar.
The fund invested in Australian equities to deliver sustainable income to investors and received the upgrade after delivering consistent performance and above-index returns.
The ‘Morningstar Global Fund Report’ said: “[The fund] offers investors soundly managed Australian equity exposure with consistent above-index income.
“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 were Rudi Minbatiwala, Jason Moodie and Marlon Chan.
“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,” Minbatiwala said.
Minbatiwala said they took a more holistic view of the investment options available, 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,” Minbatiwala said.
The strategy was first put to the test during the Global Financial Crisis (GFC) and Minbatiwala said it delivered the downside protection that was 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,” Minbatiwala said.
“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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