Rudi Minbatiwala, Jason Moodie, and Marlon Chan have worked together for the past 17 years at FSI, where they managed the First Sentier Equity Income Strategy together since 2008.
However, FSI announced last year that it would no longer be supporting its equity income fund amid the closure of four investment teams following a strategic review.
The First Sentier Equity Income Strategy delivered 10.4 per cent per annum income (including franking credits) over 16 years since 2008.
Blackwattle described how the team has long-standing relationships with advisers and institutions and is “pioneers of objective-based, retirement income strategies”, which focus on high-quality equities.
Blackwattle intends for the new fund to launch in early 2026 and will begin foundation investor engagement in the coming months.
This will be the firm’s first equity income offering, and managing director Michael Skinner said he believes the move of 2.5 million Australians into the decumulation phase will mean retirees are seeking retirement income.
It currently runs a Small Cap Quality Fund, Small Cap Long/Short Quality, Mid Cap Quality, Long/Short 130/30 Quality, and Large Cap Quality Fund.
This will offer daily liquidity and target a 2.5 per cent yield above the ASX equity market dividend yield by diversifying income streams and managing downside risk. It described how it will deliver a total income of 6–12 per cent per annum, comprising dividends, franking credit and option premium income.
Minbatiwala, portfolio manager and partner, said: “We are energised to be joining the Blackwattle team and continuing to serve retirement income investors, a specialist investment area we believe is more relevant than ever.
“Our highly differentiated approach to equity income serves a distinctive role in client portfolios for those seeking higher income and lower volatility from Australian shares.”
Skinner said: “Adding a team of this calibre underscores our commitment to building a best-in-class active equities platform. We are proud to offer clients a proven equity income strategy that has delivered excellent outcomes over a long period of time.
“We believe the market is presenting outstanding tailwinds for the launch of this strategy. The need for consistent and liquid income sources will be higher than ever.”
