Aiming to generate sustainable dividend growth and attractive total returns over the long term, the open ended investment company (OEIC) replicates Investec’s existing $200m (£138m, €176m) Global Quality Equity Income SICAV, which has a nine-year track record.
Since launching in March 2007, the SICAV has performed in the top decile and delivered 5.9% annually compared with the index’s 2.7%, according to Morningstar data.
Following the launch of Investec’s Global Dividend Fund, the group’s latest global equity income product is designed to provide UK investors with a dividend yield that exceeds the MSCI All Country World Index, the firm said.
It comprises a high conviction portfolio of 30-50 stocks. The portfolio’s top holdings include Nestle, Johnson & Johnson, Microsoft, Unilever and Imperial Brands.
The management team includes co-managers Clyde Rossouw, Blake Hutchins and Abrie Pretorius. Hutchins joined Investec in September 2014 from Columbia Threadneedle.
The team will target companies that are highly cash-generative, invest for future growth and have a proven track-record of paying growing dividends to investors, while avoiding more capital intensive sectors.
“Given the challenges facing investors in the current climate of low rates and stagnant economic growth, coupled with the financial realities that face an aging population, investors are increasingly focused on sourcing attractive income streams from their assets whilst minimising risk to the underlying capital,” said David Aird, managing director of Investec’s UK client group.
“By investing in quality companies with an ability to grow cash flows, while avoiding capital intensive sectors such as utilities and natural resources, which are often favoured by other equity income products, the fund looks to provide lower volatility returns over the long term – something close to the hearts of our clients in today’s uncertain world,” added Aird.
