The Merlon Australian Share Income Fund is a portfolio of what we consider to be undervalued companies constructed without regard to index weights, delivering monthly income with downside protection.
Differentiating features of the Fund
- Deep fundamental research. This is where we spend the vast majority of our time and ultimately how we expect to deliver superior risk-adjusted returns for investors.
- Portfolio diversification with no reference to index weights. The benchmark unaware approach to portfolio construction is a key structural feature, especially given the concentrated nature of the ASX200 index.
- Downside protection through fundamental research and the hedge overlay. In addition to placing a heavy emphasis on capital preservation through our fundamental research, we use derivatives to reduce the Fund’s market exposure and risk by 30% whilst still retaining all of the dividends and franking credits from the portfolio.
- Sustainable income, paid monthly and majority franked. As the Fund’s name suggests, sustainable above market income is a key objective but it is an outcome of our investment approach.
You should read the Fund’s Target Market Determination (TMD) and the Fund’s Product Disclosure Statement (PDS) to ensure the key attributes of the Fund as described in the TMD and PDS aligns with your objectives, financial situation and needs.
Ratings
Platform Access
Merlon Australian Share Income Fund
Investment objective
The Fund aims to provide a higher level of tax-effective income with a lower level of risk than the S&P/ASX 200 Accumulation Index.
Benchmark
70% S&P/ASX 200 Accumulation Index / 30% Bloomberg Ausbond Bank Bill Index
Stocks held in portfolio
25-35
Minimum investment
timeframe
At least five years
Investment Universe
The Fund’s investment universe is primarily securities listed on the ASX, or those that Merlon expects to be listed within the next six months. The Fund can also invest in cash and over-the-counter derivatives related to securities listed on the ASX.
Investment Parameters*
Securities 90-100%; Physical Cash 0-10%
Management Fee
0.95% p.a.
APIR Code
HBC0011AU
mFund ASX Code
MLO02
*The Fund targets to be fully invested in shares for the purposes of earning dividend income and uses derivatives to reduce exposure to share market volatility to a typical range of 60%-80%.
Fund Reports
Keep up to date with the latest performance figures and portfolio analytics for the Merlon Concentrated Australian Share Fund.
You should read the Fund’s Target Market Determination (TMD) and the Fund’s Product Disclosure Statement (PDS) to ensure the key attributes of the Fund as described in the TMD and PDS aligns with your objectives, financial situation and needs.
Fund Performance (Retail Fund)
Merlon Australian Share Income Fund – Performance (after fees) as at 31 May 2026
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*Returns are calculated after fees and expenses, and assuming the reinvestment of distributions. All returns are grossed up for franking credits. Past performance is not a reliable indicator of future performance. The inception date for the Fund is 30 September 2005.
**The Fund’s benchmark is a composite of 70% S&P/ASX 200 Accumulation Index / 30% Bloomberg Ausbond Bank Bill Index and is used for all time periods. From 30 September 2005 to 16 May 2022, the Fund’s benchmark was the S&P/ASX 200 Accumulation Index. The Fund reduces exposure to share market volatility to a typical range of 60-80% through the use of derivatives with the remaining 20-40% option protection seeking to deliver a cash-like risk/return profile.
^The Inception Date for the fund is 30 September 2005.
Fund Managers
Neil Margolis
Neil Margolis founded Merlon Capital Partners in May 2010.
Andrew Fraser
Andrew joined Merlon Capital Partners as a Principal/Co-Portfolio Manager upon its establishment in May 2010.
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