Portfolio Construction — August 9, 2021

Designing an Income Strategy for the Australian Equity Market

A Joint Paper by Qontigo Applied Research & Redpoint Investment Management

For this paper, Qontigo and Redpoint collaborated to document key considerations when constructing an income strategy for the Australian equity market, by using Qontigo’s portfolio-construction platform, Axioma Portfolio Optimizer, and Redpoint’s forecasted dividend yield, alpha signal, and local-market expertise.

Specifically, our goal was to develop a methodology to deliver income of 2% above the dividend yield earned by holding the S&P/ASX 200 index.