AGP Investment Management Limited Announces Appointment of Vertium Asset Management Pty Ltd as Investment Manager for Switzer Dividend Growth Fund

SYDNEY, Tuesday, 27 February 2024: AGP Investment Management Limited (AGP) is pleased to announce a significant change to the Switzer Dividend Growth Fund (ASX: SWTZ or the Fund) with the appointment of Vertium Asset Management Pty Ltd (Vertium) as the new investment manager, effective March 28, 2024.

By Mr Peter Switzer:

Since its inception in 2017, SWTZ has been committed to delivering reliable, tax-effective income to investors. In line with this objective, the Board has identified an opportunity to enhance the performance of the Fund, both in terms of income generation and capital growth, through the selection of a new investment manager.

The decision to appoint Vertium follows a thorough review by the Board of the existing arrangements, with the belief that this change will provide substantial benefits to all investors in the Fund.

Key Benefits of the Change Include:

  • Access to award-winning Australian equity income management expertise with a proven investment process.
  • An anticipated continuation of a reliable income stream, supported by Vertium’s Equity Income strategy, which has historically delivered a distribution yield of 6.0% per annum or 7.2% including franking credits, with reduced market volatility.
  • Income derived from diversified sources, including dividends and option income.
  • Enhanced focus on downside protection, aligning with Vertium’s risk management philosophy, recognized by Lonsec Research as superior to many peers.
  • Access to an investment strategy highly regarded by leading research houses such as Zenith Investment Partners and Lonsec Research.

Changes to Investment Strategy for the Fund

Transitioning the investment benchmark from the S&P/ASX 200 to the S&P/ASX 100 index will impact certain stock weightings within the portfolio.

Allowing the use of derivatives within the investment strategy, up to a maximum of 10% of the Fund’s assets, facilitating efficient market exposure management and the optimization of option income for investors.

AGP Investment Management Limited is confident that these strategic changes will contribute to the long-term success of the Switzer Dividend Growth Fund, reinforcing its commitment to delivering value to investors.

About Vertium Asset Management

Established in 2017, Vertium Asset Management is a Sydney-based Australian equity fund manager. Its founder, Jason Teh, successfully managed a portfolio with a similar investment style at another Australian fund manager before launching Vertium.

Vertium was created to fill a perceived void in the market for retirement portfolios: a strategy that can provide income (and capital growth potential) from investing in Australian shares, with a genuine focus on capital preservation and lower sensitivity to volatile market movements.

Vertium is a well-regarded, award-winning investment manager which has been recognised across the industry. In the last 12 months, Vertium has been awarded the Best Investment Manager in the Australian Equities Income category for the 2024 Money Magazine ‘Best of the Best’ Awards and the Financial Standard Leadership Award in the Australian Equities Income Focused category.

The Board is delighted to be working with a leading Australian equity manager with the potential to provide a superior investment outcome for investors.

Current investors do not need to take any action. The investment manager of the Fund will continue to be Blackmore Capital Pty Ltd until 27 March 2024. The Fund will continue to be managed under the current investment strategy and objective as disclosed in the Product Disclosure Statement issued on 30 September 2022.

There is no change to the total management fee payable by the Fund. However, investors will now benefit from Vertium’s specialised funds management skills, in addition to continuing to receive the support from AGP’s successful marketing and distribution platform.

For more detailed information on the Fund, contact us directly via email at [email protected] or by phone on 1300 052 054.

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For media inquiries, please contact:

Peter Switzer

Non-executive Director

AGP Investment Management Limited

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