EINC invests in an actively managed portfolio of income-oriented Australian shares that aims to generate an after-tax yield higher than that produced by the S&P/ASX 200 Index, and to grow that income above the rate of inflation. The Fund is managed by Franklin Templeton’s Specialist Investment Manager, Martin Currie.

The BetaShares Legg Mason Equity Income Fund (managed fund) seeks to provide a growing income stream by investing in a diversified portfolio of high quality equities listed on the Australian Securities Exchange.

The benefits of the Fund include:

• Exposure to an actively managed portfolio of Australian income orientated listed securities;
• The opportunity to receive regular income distributions from dividends (including franked dividends) and net gains on the disposal of assets;
• The Fund targets lower volatility than that of the S&P/ASX 200 Index;
• Professional management of the Fund by an experienced investment manager;
• Diversification benefits that would be difficult to achieve through direct investment; and
• Disciplined portfolio construction

The Fund seeks to provide a growing income stream by investing in a diversified portfolio of high-quality equities listed on the Australian Securities Exchange.

The Investment Manager’s approach is premised on the philosophy that high-quality companies that have solid earnings can sustain dividends, match rises in the cost of living and are likely to be less volatile than the wider equity market.

The Investment Manager relies on complementary fundamental and quantitative research, and collective insights into the current investment landscape, to identify the most attractive opportunities.

The Fund is managed in a tax-aware manner in order to seek to benefit from franking credits.

The Fund aims to hold investments so that at the time of purchasing securities:

• exposure to an individual stock is no more than 6% of the Fund;
• approximately 40 securities are held; and
• exposure to an individual sector (as determined by Martin Currie Australia) is no more than 22%

While the maximum cash holding is 10%, the Fund is intended to be fully invested in securities at all times with cash being held for liquidity purposes only.

The Fund may use exchange-traded derivatives, such as futures, where this may help to achieve the Fund’s investment objectives. For example, exchange-traded derivatives may be used where direct investment in a particular security or securities is not possible or practical, or to obtain an investment exposure without physically buying or selling the underlying asset.

The Fund will not use short selling, leverage or gearing to seek to enhance its returns.

Derivatives will only be used on a temporary basis (ie no more than 28 days) or so that the notional derivatives exposure of the Fund does not exceed 10% of its net asset value.

Cash may comprise bank deposits and/or Australian exchange traded cash funds (which may include funds managed by the Responsible Entity).