The Fund is designed to provide investors with exposure to global equities through a high conviction, low turnover portfolio of consistently profitable dividend-paying companies and is managed for dVAM by Guinness Asset Management. 

 

Focus on consistent high return on capital

Consistent high return on capital is a good indication of a company’s ability to pay healthy dividends. The Fund invests in companies that are unusually consistent in generating returns on capital above their cost of capital.

High conviction

The fund typically invests in just 35 companies, with each company having an equal weighting. This provides a good balance between the benefits of diversification while also allowing each company to add meaningfully to performance. The fund does not have a long tail of small positions and by definition, we can never just ‘hug’ the benchmark index.

Low turnover

The investment team prefers to invest over the long term. They also recognise the increased costs of trading in and out of companies unnecessarily. Typically they will hold a company in the portfolio for between 3 and 4 years.

Growth and income

The funds' approach to dividend investing is to focus on companies that can sustainably grow their dividend into the future, rather than simply looking for companies with a high dividend yield.

Fundamentally driven

The fund focuses on ‘bottom-up’ stock selection rather than trying to make decisions based on an expected outlook for the world economy. It invests in good companies that have, in the short term, fallen out of favour, but that have previously shown an ability to weather most economic environments over time.

 

Repeatable and independent

The Guinness Asset Management fund team have managed an identical strategy since 2010. They have developed an investment process that is clear, robust, transparent, and scalable. Their approach filters out much of the noise and hype that surrounds companies to focus on the true signals that drive company valuations. By performing their own company research and analysis, using their own proprietary modelling systems, the managers try to avoid some of the behavioural biases associated with being unduly influenced by market sentiment.

 

 

We transform challenges into solutions to help protect your capital and reach your investment objectives.
Our main focus is to create an investment strategy that delivers a result and value appropriate for you.

We transform challenges into solutions to help protect your capital and reach your investment objectives.
Our main focus is to create an investment strategy that delivers a result and value appropriate for you.

© 2018 dVAM, part of deVere Group Ltd. All Rights Reserved.