Perennial Income Generator Fund Declares 1.785 Cents Monthly Distribution for January

Perennial Income Generator Fund Announces January Distribution

Perennial Investment Management Limited has declared an estimated monthly distribution of 1.785 cents per unit for the Perennial Income Generator Fund (Managed Fund) (ASX: EIGA) for January 2025. This announcement provides investors with essential details on the upcoming income payment, reinforcing the Fund's commitment to delivering consistent, tax-effective income.

The Fund, which invests in a diversified portfolio of Australian shares, aims to generate income above the S&P/ASX 300 Franking Credit Adjusted Daily Return Total Index (Tax-Exempt), with distributions paid monthly. The estimated distribution reflects the Fund’s ongoing strategy to provide attractive returns through a combination of dividends and franking credits.

Key Dates and Distribution Mechanics

Unitholders should note the critical dates associated with this distribution: the ex-distribution date is Monday, 10 February 2025, and the record date is Tuesday, 11 February 2025. To be eligible for the distribution, investors must hold units prior to the ex-distribution date and be registered as unitholders by the record date.

The payment date for the distribution is scheduled for Monday, 17 February 2025. Importantly, the Fund only pays distributions electronically, requiring investors to ensure their bank details are registered with the unit registry, SS&C Solutions Pty Ltd, by the record date. Failure to provide bank details or a preferred payment method will result in automatic participation in the Distribution Reinvestment Plan (DRP).

Distribution Reinvestment Plan Participation

The DRP offers unitholders the option to reinvest their distributions into additional units of the Fund, potentially compounding their investment over time. Investors wishing to participate must submit their election by 5 PM on Tuesday, 11 February 2025. The Fund provides accessible channels for managing these elections, including an online Investor Centre portal and direct contact with Client Services.

This reinvestment option aligns with the Fund’s open-ended structure, which anticipates growth in units on issue as investors seek to build income streams through reinvestment.

Strategic Positioning and Investor Considerations

Perennial Income Generator Fund’s focus on delivering a gross yield enhanced by franking credits positions it as an attractive option for income-focused investors, particularly in a low-interest-rate environment. The monthly distribution cadence provides regular income, while the DRP offers flexibility for growth-oriented investors.

However, investors should be mindful that the distribution amount is estimated and subject to change, which may influence income expectations. Additionally, the Fund’s reliance on Australian equities means performance and income are inherently linked to market conditions and dividend policies of underlying companies.