At Income Solutions we focus on your goals and help you create and protect a reliable income stream so you can enjoy the lifestyle of your choice now and into the future. In doing this we look at what the right investment is for you. A popular choice of investment to help you achieve the primary objective of producing a growing, tax effective income stream is MLC’s IncomeBuilder.
Following from Robbie Kirtley’s blog last week where he discussed the current crisis of the fall in the Australian Share Market, many people suffered severe capital losses. There are two ways to invest, to increase you capital base and/or to increase your income. MLC IncomeBuilder caters for people who are investing to increase their income.
In looking at the quarterly distribution comparison from the 2009/10 financial year to 2010/11 financial year IncomeBuilder distributions have increased.
| 2009/10 | 2010/11 | Change | |
| Quarter 1 (September) | 1.06 | 1.12 | 5.66% |
| Quarter 2 (December) | 1.56 | 1.81 | 16.03% |
| Quarter 3 (March) | 1.10 | 1.48 | 34.55% |
| Quarter 4 (June) | 2.01 | 2.21 | 9.95% |
| Total | 5.73 | 6.62 | 15.53% |
Source: MLC Wholesale IncomeBuilder
This shows that distributions for the 2010/11 financial year increased to 6.62 cents per unit, this is 15.53% higher than the previous financial year. This means those invested in MLC’s IncomeBuilder continued to enjoy a growing income stream.
The key to IncomeBuilder’s success in producing growing distributions is the stocks that they invest in. The stocks are carefully selected and only companies that produce high levels of profits and large dividend payouts to their shareholders make the cut. The current top companies that are part of the IncomeBuilder Fund include AMP, ANZ, Brambles, Coca-Cola Amatil, Commonwealth Bank, Fosters, National Australia Bank, Suncorp, Telstra, Wesfarmers, Westpac and Woolworths.
In relation to the economic stability and recovery of the Australian economy there is continuing uncertainty. MLC believe that IncomeBuilder is well positioned to benefit investors when earnings and dividends improve due to its diversification across a number of sectors and companies.
So for those who invest with the goal of increasing their income, MLC IncomeBuilder may be the investment for you. Remember that you should consult your financial adviser before making any investment to ensure it is the correct investment for your current situation.
By Elise Ryan
