Guinness Atkinson launches inflation managed dividend fund
Guinness Atkinson Asset Management, advisor to the Guinness Atkinson Funds, has launched the Inflation Managed Dividend Fund.
The fund, an equity strategy for investors seeking current income and consistent dividend growth that exceeds inflation, will be managed by Ian Mortimer and Matthew Page, who have been with the company’s investment team since 2006 and 2005 respectively.
The global strategy, unconstrained by benchmark, utilizes Guinness Atkinson’s proprietary screening process to identify high quality, cash-generating companies to create a portfolio income stream that grows faster than inflation.
“Income oriented investors are facing unprecedented challenges in their search for yield while attempting to adequately manage risk, and the potential threat of rising inflation only compounds their difficulties,” said Jim Atkinson, CEO of Guinness Atkinson Asset Management.
“Our new strategy is designed to help play a role in meeting this challenge, with a focus on stable, high-quality companies across the globe that share a common trait: a history of generating consistently high cash flow and consequently rising dividends which earned their an income stream growing faster than the rate of inflation.”
The fund seeks to invest in high quality, cash-generating and stable companies to construct an equally-weighted, concentrated portfolio of 35 stocks, diversified by geography and sector. A focus on companies that have generated consistent cash flow return on investment in excess of 10% above inflation for ten consecutive years can lead the investment team to a universe of companies that have flourished even during recessionary periods, while also screening out highly cyclical companies.
“We feel strongly that our process of identifying stable cash-generating companies is preferable to a yield-only approach,” said Mortimer. “Encouragingly, the universe of companies that meets our criteria has been steadily growing, both in absolute size and in global breadth.”