BT Equity Income Series.

It's time to get selfish.

You should expect more from your savings.

That’s why, with the BT Equity Income Series, you’ll earn a consistent, high income of
6-7.5% pa1 + franking credits
 and get monthly payments.

The income depends on the unit price at the time of investment. The unit price will vary daily.

Unleash your savings.

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Expect more, earn more, get more.

The BT Equity Income Series can give you the opportunity to earn higher income from shares, while reducing your exposure to market falls, when compared to traditional share portfolios.

How the BT Equity Income Series works for you.

Barbara is 62, and watching her income fall with interest rates.

She wants to maintain her lifestyle by generating a high, consistent and reliable income from her savings while limiting her exposure to sharemarket movements without eroding her capital.

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Barbara is 62, and watching her income fall with interest rates.

She wants to maintain her lifestyle by generating a high, consistent and reliable income from her savings while limiting her exposure to sharemarket movements without eroding her capital.

pic-barbara

Barbara understands that she will be taking on some market risk and giving up some potential upside from the sharemarket in exchange for higher income.

Current options -
Barbara invests her savings of $150,000 in traditional term deposits or shares.

Investment option Annual income Benefits Drawbacks
Invest $150,000 in a term deposit $6,150 pa
(assuming current term deposit rate of 4.10%2)
  • Very low risk of capital loss
  • Return/income amount known up front
  • Not enough income to meet needs
  • Risk of capital erosion due to inflation
  • Income may fall with future cash rate drops
  • Limited access to funds
Invest $150,000 in shares $6,690 pa
(assuming dividends of 4.46% pa. This amount does not include potential franking credits)
  • Potential for capital growth
  • Receive dividend income 
  • Not enough income to meet needs
  • Income amount is not certain, making cash flow planning difficult
  • Risk of capital loss

 

A better approach -
Barbara unleashes her savings and invests $150,000 in a BT Equity Income Fund.

Fund4 Target income (before franking credits) Annual income56 Benefits4 Drawbacks
BT Defensive Equity Income Fund 6% pa $9,000 pa gross
(plus franking credits)
  • Daily liquidity
  • Monthly payments, known up to six months in advance
  • Some potential for capital growth.
  • Reduced risk of capital loss with an average target exposure to the sharemarket of 30%
  • Some risk of capital loss
  • Future income distributions may vary
BT Balanced Equity Income Fund 7.5% pa $11,250 pa gross
(plus franking credits)
  • Daily liquidity
  • Monthly payments, known up to six months in advance
  • Some potential for capital growth
  • Reduced risk of capital loss with an average target exposure to the sharemarket of 40%
  • Some risk of capital loss
  • Future income distributions may vary

 

1. Earn higher income

The series aims to provide investors with a higher level of income than most income-focused and traditional share investments9, while still providing the potential for some capital growth. Plus, the additional benefits of franking credits can provide you with a tax-effective investment.

The income depends on the unit price at the time of investment. The unit price will vary daily.

2. Known, consistent monthly payments

Unlike many other income investments, the series gives you the certainty of knowing the exact amount of your monthly income payments, at least three and up to six months in advance10.

Income information is available for you to view online making cash flow planning simple. You can view the BT Defensive Equity Income Fund distributions here and the BT Balanced Equity Income Fund distributions here.

3. Daily access to your funds

With daily liquidity, the series allows you to access your investment when you want.

4. Reduce the impact of sharemarket falls

Part of the income generated is used to purchase some downside market protection against market falls. This means that if the sharemarket does fall, the value of an investment in the series will fall by less. You can find out more about this in the how the funds work section.

The series combines expert stock selection with an enhanced income strategy to deliver a known, consistent monthly income while significantly reducing the impact of sharemarket falls.
Discover how the funds work

What you need to consider before you invest

Income based on pre-announced distributions for 6 months to 31 March 2015 and based on a $1 unit price. The income depends on the unit price at the time of investment. The unit price will vary daily. The latest unit price and income can be obtained by calling 1300 889 576 or visiting www.btim.com.au/equityincomefunds. The value of your investment will go up and down over time. There is a risk that there may be lower income after 31 March 2015. Franking credits to which you may be entitled will be advised in your annual fund tax statement at the end of the tax year. Like all investment strategies, an investment in the funds involves risk. The following significant factors could result in the described benefits of investing in the series not or only partially eventuating:

  • 1. The income generated in the funds may be higher or lower than anticipated due to, amongst other things, changes in the level of dividends, franking credits and the value of the potential upside that the funds sell and the cost of the capital protection that they buy.
  • 2. The funds may change the level of their distributions giving at least three months’ notice or if the responsible entity determines that it is in the best interests of investors to do so.
  • 3. The funds intend to purchase a significant level of downside protection to provide a cushion for market falls, but this does not constitute a capital guarantee.
  • 4. The downside sharemarket protection may be more or less effective depending on the timing of market falls and gains, performance of individual stocks versus the broader sharemarket and other factors.