The Aurora Dividend Income Trust (Managed Fund) is an efficient and low risk fund that invests in Australian stocks with a value bias. The Aurora Dividend Income Trust is an alternative to the Listed Investment Companies.
Aurora’s strategy produces an investment with greater and more stable excess returns compared to both Listed Investment Companies and the conventional common value signal. Aurora’s strategy has effectively similar overall risk characteristics to the other forms of active equities, albeit with a diversification from the alpha signal.
The Franking of dividends is a reliable and simple ‘value’ signal. This signal can be used to construct an efficient and stable ‘value’ bias strategy.
Aurora’s Dividend Income Trust (Managed Fund) is an efficient and low risk Fund that invests in Australian stocks with a value bias. Risk management is achieved with both the value signal and the ability to short stocks to control beta risk.