Which Aus equity funds are still producing distribution yield?
Despite challenges producing income in the COVID-19 environment, several Australian equity funds have delivered double-digit yield returns during 2020, according to data.
According to FE Analytics, within the Australian core strategies universe, the Australian equities fund with highest yield return on distributions was Macquarie Australian Enhanced Plus Equities which produced distribution yield of 21.59%.
This was followed by AMP Capital Sustainable Share (20.3%), Macquarie Yield Enhanced Australian Shares (14.5%), APSEC Atlantic Pacific Australian Equity (13.24%) and Hyperion Australian Growth Companies (12.73%), with five other funds achieving above 10%.
Hyperion and both Macquarie funds paid distributions out quarterly, while the AMP did so semi-annually and the APSEC fund annually.
However, the average in the sector had declined as the average for 2020 so far was 3.23%, versus 6.04% for 2019, 7.78% for 2018, 5.81% for 2017, and 4.73% for 2016.
When it came to returns, the Hyperion and APSEC funds were two of the best-performers in the sector for that period, finishing first and third respectively.
The Hyperion fund returned 26.85%, while the APSEC fund returned 21.62%, over the previous 12 months to 31 October, 2020.
The AMP fund returned 1.53%, while Macquarie Australian Enhanced Plus Equities lost 4.41%, and Macquarie Yield Enhanced Australian Shares lost 5.55%.
The Australian equities sector had lost an average of 4.99% in that time period.
Performance of the highest yield returning Australian equity funds over the year to 31 October 2020
AUTHOR
Chris Dastoor
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
