With dividends and franking credits taking on renewed relevance for Australian investors, Oliver Renton explains how imputation strategies seek to optimise tax-effective income while maintaining exposure to the growth potential of equities. 

He explores who these strategies may suit, how they compare with term deposits and fixed income, and the risks investors should keep in mind. 

Renton also explains why active management can be particularly important when investing for yield, helping investors look beyond headline yields and avoid potential “yield traps”.

Here's an excerpt from the podcast:

“Broadly speaking, an imputation fund is purposely looking to optimise the overall tax effective yield profile of that fund.

“Yield appeals to different investors in different ways and tax effective yield is no different.

“For an income fund, I think [active management is] even more important.

“Active management should, and we think does, have the ability to sort of rule out those stocks that are maybe perceived as yield traps, stocks that are structurally impaired or challenged.”

Learn more about Pendal Imputation Fund

Learn more about Pendal

This podcast has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332 AFSL 431426.

It is general information only and is not intended to provide you with financial or taxation advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional advice.

Pendal is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) advisor if you intend to rely on this information to satisfy your liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.

The product disclosure statement (PDS) for the Pendal Imputation Fund ARSN: 089 614 693 (Fund), issued by PFSL, should be considered before deciding whether to acquire, dispose, or hold units in the Fund. The PDS and Target Market Determination can be obtained by calling 1300 346 821 or visiting our website www.pendalgroup.com.

This podcast may contain information contributed or prepared by third parties. Any information contributed or prepared by third parties is believed to be accurate as at the time of compilation and is being provided in good faith without independent verification. PFSL does not warrant the accuracy or completeness of any information provided by a third party.

References to securities in this video are for illustrative purposes only and are not recommendations, and the securities may or may not be currently held by the Fund. Examples used in this presentation are provided for illustrative purposes and may not reflect actual market outcomes. Past performance is not indicative of future performance.

To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. All investing involves risk including the possible loss of principal.

With dividends and franking credits taking on renewed relevance for Australian investors, Oliver Renton explains how imputation strategies seek to optimise tax-effective income while maintaining exposure to the growth potential of equities.&nbsp;
He explores who these strategies may suit, how they compare with term deposits and fixed income, and the risks investors should keep in mind.&nbsp;
Renton also explains why active management can be particularly important when investing for yield, helping investors look beyond headline yields and avoid potential &ldquo;yield traps&rdquo;.
Here's an excerpt from the podcast:
&ldquo;Broadly speaking, an imputation fund is purposely looking to optimise the overall tax effective yield profile of that fund.
&ldquo;Yield appeals to different investors in different ways and tax effective yield is no different.
&ldquo;For an income fund, I think [active management is] even more important.
&ldquo;Active management should, and we think does, have the ability to sort of rule out those stocks that are maybe perceived as yield traps, stocks that are structurally impaired or challenged.&rdquo;
Learn more about <a href="https://pendalgroup.com/products/pendal-imputation-fund">Pendal Imputation Fund</a>
Learn more about <a href="https://pendalgroup.com/">Pendal</a>
This podcast has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332 AFSL 431426.
It is general information only and is not intended to provide you with financial or taxation advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional advice.
Pendal is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) advisor if you intend to rely on this information to satisfy your liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.
The product disclosure statement (PDS) for the Pendal Imputation Fund ARSN: 089 614 693 (Fund), issued by PFSL, should be considered before deciding whether to acquire, dispose, or hold units in the Fund. The PDS and Target Market Determination can be obtained by calling 1300 346 821 or visiting our website www.pendalgroup.com.
This podcast may contain information contributed or prepared by third parties. Any information contributed or prepared by third parties is believed to be accurate as at the time of compilation and is being provided in good faith without independent verification. PFSL does not warrant the accuracy or completeness of any information provided by a third party.
References to securities in this video are for illustrative purposes only and are not recommendations, and the securities may or may not be currently held by the Fund. Examples used in this presentation are provided for illustrative purposes and may not reflect actual market outcomes. Past performance is not indicative of future performance.
To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor&rsquo;s capital. All investing involves risk including the possible loss of principal.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.