Key Highlights

• Solaris aims to pay a Franked Dividend every month.

• Early payments show a vehicle still ramping up.

• The company is a listed Investment company holding ordinary shares.

• Portfolio income and risks should be weighed carefully.

Solaris Australian Equity Income Plus (ASX:SET) is built to pay a franked dividend every month, and its first few payments show a vehicle still ramping up rather than one at full speed. The company listed in April 2026 with an income-first mandate, and each monthly payment so far has been larger than the one before.

What the security is

Solaris Australian Equity Income Plus (ASX:SET) Limited is a listed investment company, so investors hold ordinary shares in a company whose Assets are a portfolio of Australian equities. It was incorporated on 13 February 2026.

Its initial public offering issued 94,196,620 shares at A$2.00, raising A$188.4 million. The shares were allotted on 13 April 2026 and began trading on the ASX on 17 April 2026.

Solaris Investment Management Limited manages the portfolio. The Annual Report describes it as a style-agnostic, bottom-up Australian equities manager with about A$8.1 billion under management.

The income objective

The company has three stated objectives. They are to generate income, including franking, that exceeds the benchmark's income each year, to outperform the benchmark after fees over a full investment cycle, and to deliver regular monthly income as franked dividends.

The management fee is 0.85 per cent a year, and the annual report discloses no performance fee. A 1.5 per cent buy-back fee applies in the first five years after the IPO.

What the early numbers show

The first report covers 13 February to 30 June 2026. Net profit after tax was A$727,000, but a A$945,000 other comprehensive loss left a total comprehensive loss of A$218,000. No dividend was declared or paid in that period.

Since then the board has resolved fully franked dividends of 0.3 cents for August, 0.5 cents for September and 0.7 cents for October 2026. The October payment, with an ex-dividend date of 19 October, was made on 30 October. One note in the annual report lists all three amounts at 0.3 cents.

The company operates no Dividend reinvestment plan, according to its October dividend notice.

Portfolio and performance

At 30 June 2026 the largest holdings were BHP Group, Commonwealth Bank of Australia, National Australia Bank, Westpac and ANZ. In the September 2026 update, financials made up 37 per cent of the portfolio and materials 22 per cent.

From the 13 April 2026 start to 30 September 2026, the portfolio returned 1.74 per cent including franking, against 0.75 per cent for the benchmark. Over three months to 30 September it returned 1.75 per cent against 1.77 per cent.

The premium is calculated here from those two figures.

Risks to weigh

Dividends depend on profits, cash flow, franking credits and board discretion, so the monthly payments are not assured. The annual report lists income sustainability, premium or discount to net tangible assets, manager performance and related-party fee conflicts among its key risks.

The portfolio's concentration in banks and resources exposes it to Commodity and Credit cycles. The track record as a listed company is only months long, so the longer-term strategy figures predate the vehicle.

The manager's strategy figures since December 2016, 10.56 per cent a year against 10.34 per cent for the benchmark, relate to the strategy, not this company.

Shareholders meet on Monday 16 November 2026 at 10.00am AEDT. Resolutions include the remuneration report, the re-election of director Chris Meyer, an additional 10 per cent Placement capacity and the appointment of Pitcher Partners as auditor.

The company's daily and monthly net Tangible Asset announcements will show whether the premium persists as dividends build.