Sarasin & Partners has launched two global equity income funds, which are aimed at providing a total return approach to global dividend investing.
They complement the existing (but renamed) Global Higher Dividend funds, which are focused on the delivery of consistently higher levels of dividend income, over the longer term.
Sarasin & Partners launched its first international equity income fund in 2006, in response to the demand from UK investors for more diversified global income streams.
Mark Whitehead, the existing manager for the Global Higher Dividend funds, will also be lead manager for the two new funds, along with current deputy manager Darryl Lucas.
The Sarasin Global Dividend Fund aims to achieve long-term capital growth, whilst also generating a premium income of at least 15 per cent to the benchmark (MSCI All Countries World Index).
The Sarasin Global Dividend Fund (Sterling Hedged) will be a mirror of the above, with the currency risk for Sterling investors being hedged.
The Sarasin Global Higher Dividend Fund, previously Sarasin International Equity Income Fund, has been renamed to more accurately reflect its objective of achieving a consistently attractive level of income, in addition to long-term capital appreciation. The fund, launched in 2006 and currently yielding 4.77 per cent pa, will continue to focus on generating an income premium of over 50 per cent to the benchmark (MSCI World Index). It has consistently raised its dividend each year since its launch, giving it one of the strongest ‘absolute income’ records among its peers.
The Sarasin Global Higher Dividend Fund (Sterling Hedged), previously Sarasin Global Equity Income (Sterling Hedged), is a mirror of the above, with the currency risk for investors being hedged.
The Sarasin Global Higher Dividend Fund (Sterling Hedged) and Sarasin Global High Dividend Fund rank first and third respectively, for current yield in the IMA Global Equity Income Sector.
Whitehead says: “Globally the pool of companies offering progressive dividend policies is growing, opening more investment opportunities for global equity income investors. Extending our range of funds is a natural response to this expanding universe, drawing on seven years’ experience in equity income investment.
“Since 2006, we have been largely focused on meeting the needs of investors seeking a growing income stream. Our global thematic process has been identifying more and more high quality companies with visible growth profiles and sustainable dividend streams that have a yield premium less than 50 per cent to the market. As we are restricted in the extent to which can hold these companies in our Global Higher Dividend fund, we can now use this thinking more broadly to benefit total return clients.”