Solaris Australian Equity Income Plus (ASX:SET) is an ASX-quoted vehicle designed around a single objective: to deliver a stream of franked income from Australian shares while retaining exposure to the equity market. It is managed by Solaris Investment Management, a boutique Australian equities specialist, and belongs to the growing group of income-focused equity products that have attracted investors seeking Yield with the benefit of franking credits.

The Business in detail

Income-oriented equity strategies work by tilting a portfolio toward companies that pay reliable, franked dividends, and often by managing the portfolio actively around dividend timing and franking. The plus in such mandates typically signals an attempt to enhance the income return beyond the raw Dividend Yield of the market. For the investor, the appeal is a combination of a regular distribution and the franking credits attached to it, with equity market exposure providing the potential for Capital growth over time.

The distributions such a vehicle pays are drawn from the income and realised gains of the underlying portfolio, so their level moves with the dividends of the companies held and with market conditions. Investors should read the product's disclosure documents to confirm distribution frequency, fees and the precise income objective.

Competitive position and peers

The Australian equity income category is competitive and spans several structures. Actively managed income vehicles such as Plato Income Maximiser (ASX: PL8) compete directly on franked yield, while index-based Options including the Vanguard Australian Shares High Yield ETF (ASX: VHY) offer a lower-cost, rules-based alternative. A range of dividend-harvesting Exchange-traded funds rounds out the field. Solaris competes on the strength of its active management and its focus on franked income.

The dividend

Solaris Australian Equity Income Plus goes ex-dividend on 20 August 2026. The declared amount is $0.003 per security, franked at 100 per cent, and classified as a final distribution. Investors must hold the security before the ex-date to qualify. The full franking is central to the income proposition for eligible Australian holders.

What shapes the investment case

The key considerations for an income vehicle of this kind are the consistency of the distribution, the level of franking it can maintain, and the fees charged against a strategy whose entire purpose is to maximise after-tax income. Because the vehicle sits inside the equity market, holders also carry the capital risk of Australian shares, so the income objective should be weighed alongside the potential for capital fluctuation.