Principal Global Investors launches Edge Equity income fund
Principal Global Investors has launched its edge equity income fund, managed by its affiliate Edge Asset Management.
The fund is Dublin registered and UCITS compliant and is designed help investors searching for lower-volatility, higher-yielding strategies in the current low growth economic environment.
The fund aims to provide income, with long-term growth in both income and capital by investing primarily in attractively priced US large-cap companies with the capacity and commitment to pay and grow dividends over time and in all economic environments.
The fund will be managed by portfolio managers Dan Coleman and David Simpson and will invest primarily in the common stocks of US companies with market capitalisation typically above $7bn. Edge’s investment approach is characterised by robust fundamental research, a bottom-up approach to selecting companies and a contrarian style focused on dividend-paying stocks that are attractively priced for dividend growth and capital appreciation. The benchmark is the Russell 1000 Value Index.
“Increased volatility in the equity markets and low yields on bonds has understandably intensified the search for alternative income strategies. The yield available on equities through dividend payments is very attractive in this environment and is durable over the long-term,” said Dan Coleman, head of equities and portfolio manager.
He added: “Dividend-paying companies have consistently outperformed non-dividend payers with lower volatility for over 40 years. The Edge Equity Income Fund aims to identify high quality, attractively valued and well managed companies with the potential to grow their dividend over time to give investors access to a long-term, sustainable income stream and capital growth.”