DNR Capital Australian Equities Income Portfolio

DNR Capital: Update on the Big 4 Banks
Franking Reform Update
The Current Market for Income Investing
DNR Capital Income Strategy Market Update
Investors Need the Right Settings to Capture Ongoing Dividend Flows
A Focus on the Unloved Sectors
DNR Capital: Spotlight on Qube Holdings
Frankly Speaking on Dividends
Investors are currently presented with a unique dividend opportunity
COVID-19 and the implications for dividends
The outlook for dividend growth

About this Fund

Fund Detail

ASX Code
INVESTMENT STYLE ASX listed securities with a focus on those included in the S&P/ASX 200. Style neutral with a focus on quality and sustained income growth.
INVESTMENT PROFILE To outperform the S&P/ASX 200 Industrials Accumulation Index and deliver higher levels of income (before fees) over a rolling three year period.
BENCHMARK S&P/ASX 200 Industrials Accumulation Index
FUND SIZE S&P/ASX 200 Industrials Accumulation Index
FEES Platform dependent



Benefits of investing in the DNR Capital Australian Equities Income Portfolio

  • Recognised leader in the managed account space. DNR Capital have operated managed account solutions since 2001.
  • Proven performer. The DNR Capital investment team have been through a full cycle and illustrated an ability to outperform on all of our Australian equity strategies.
  • Strong team tenure. Our unique ability to distribute equity to key performers and our willingness to distribute this broadly throughout the team (not locked up with one or two principals) has ensured we can retain key investment professionals over the long term.
  • Strong alignment. DNR Capital is employee owned and invests alongside clients.
  • Efficient process due to focus on quality businesses at attractive valuations.
  • High degree of accountability embedded within the culture of DNR Capital. An Investment Committee provides oversight and we have a history of transparent communication around investment decisions and investment strategy.
  • Strong transparency. Having focused on the managed account space since inception, clients have seen all of our portfolio holdings daily for the last 16 years. This has resulted in a laser sharp focus on maintaining true to label.

Investor suitability

Investors with a medium-to-long term investment objective, who seek a greater level of income and who can make use of franking credits.




Key Features

The DNR Capital Australian Equities Income Portfolio is designed for investors who are seeking a greater level of income and who can make use of franking credits.

Investment philosophy

DNR Capital believes a focus on quality companies will enhance returns when it is combined with a thorough valuation overlay. We seek to identify quality companies that are mispriced by overlaying our quality filter, our Quality Web', with a strong valuation discipline. The portfolio is high conviction, after-tax focused and invests for the medium-to-long term.

Investment strategy

The DNR Capital Australian Equities Income Portfolio has an investment style best described as style neutral' with above-average income and associated franking credits. The stock selection process has a strong bottom-up discipline and focuses on buying quality companies at reasonable prices.

The DNR Capital Australian Equities Income Portfolio also has a preference for companies that have high and sustainable dividend capability, strong profit-to-cash conversion, and relatively assured earnings growth. Companies that generate franking credits predominate.

Quality companies are defined as being those companies with the following six attributes:

  • earnings strength (particularly improving return)
  • superior industry position
  • a sound balance sheet
  • strong management
  • low environmental, social and governance (ESG) risk.
  • income sustainability and growth

The focus of the portfolio is on yield. We are focused on a growing, sustainable dividend yield above the market.

Where a company possesses quality characteristics then it is eligible for inclusion in the portfolio. However, it must also represent value and sit comfortably within the portfolio construction requirements.

A range of valuation methodologies are used depending on the nature of the company being assessed to identify mispriced opportunities.

The portfolio construction process is influenced by a top-down economic appraisal and also considers the risk characteristics of the portfolio, such as stock and sector correlations.


How we invest your money

Asset allocation

The SMA platform generally sets the portfolio asset allocation ranges.

In the DNR Capital Model Portfolio they are as follows:

  • Equities 80-100%
  • Cash 0- 20%

The portfolio has a 15% maximum weighting stock limit.

This provides only an indication of the intended investments of the portfolio. You may obtain information of the actual investment allocations of the portfolio by contacting the SMA platform directly.

The portfolio will not invest in derivatives.