Investec Asset Management has launched the Investec Global Quality Equity Income Fund for clients based in the UK.
The strategy, replicating the existing Sicav, seeks to provide UK investors with a dividend yield outperforming that of the MSCI All Country World Index.
The fund consists of a high conviction portfolio of 30-50 stocks and is led by co-managers Blake Hutchins, Clyde Rossouw and Abrie Pretorius.
The investment approach is based on the selection of world-leading quality companies which are highly cash-generative, invest for future growth and have a proven track-record of paying growing dividends to investors.
Also the management team tends to avoid more capital intensive sectors in its selection.
Since its launch to global investors in March 2007, the existing fund returned 5.9% per year to global investors for the nine years since inception against 2.7% for the index.
David Aird, managing director, UK client group, commented: “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.
“We are excited to bring to the UK market the Investec Global Quality Equity Income Fund. A global fund with a proven nine year track record, it aims to deliver a smooth and steady investment journey over the long term, irrespective of market conditions.”
“By investing in quality companies with an ability to grow cash flows, whilst 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,” Aird added.