This new Luxembourg-domiciled proposition will be managed by Nigel Hankin, portfolio manager & sector specialist, alongside Christine Baalham, portfolio manager & head of 4Factor UK equities.
The companies they will invest in are those that it deems to be paying an attractive dividend yield, with above median yields excluding the top quartile in terms of having the greatest volatility.
The managers describe the strategy as one that will not hug the traditional global benchmarks meaning its performance will differ for a number of months or even quarters.
Baalham said of the fund: “It should markedly outperform in down markets and deliver positive absolute returns in an upswing but will not seek to chase every twist and turn of investor sentiment.
“Instead, by helping to preserve capital (as far as is possible in a long-only strategy) it will assure that the positive returns gained in an upswing are on a larger asset base, thus using compounding to seek superior returns over the long term with lower volatility.”
Initially it will be launched with a dollar share class only.
In terms of country allocation, at outset the fund will have just over 40% invested in US companies, with 25% in Europe ex UK and 14% in the UK.
Its sector weighting is fairly evenly spread, with 20% in both consumer and service sectors, 15% in industrials, 14% in telcos and utilities, with 11% in financials and nearly 10% in technology.
