Lazard Global Equity Income (
Bronze Rated)
Lazard Global Equity Income remains a worthy option for investors seeking a high-yielding global equity-income fund, says analyst Muna Abu-Habsa
. Like most income managers they stress the sustainability of dividends, which for them means they prefer companies with very low levels of debt as this affords equity investors more protection.
Despite a high yield, the preference for companies with access to growing markets results in an aggressive portfolio. The fund exhibits one of the largest allocations to emerging markets and is characterised by some large sector bets. It also has less exposure to some of the more traditional dividend-paying sectors such as health care and consumer staples.
Artemis Global Income ( Bronze Rated)
Artemis Global Income stands out as a distinct offering when compared with its Global Equity Income peers, says analyst Ruli Viljoen. The fund differentiates itself most from peers in the construction of the portfolio. Manager Jacob de Tusch-Lec is very cognisant of the concentrations and correlations that exist within the universe.
As such, he actively seeks to ensure that the portfolio is distinctly different from peers' by avoiding the obvious equity-income plays, in both the UK and globally. The fund is likely to have a greater bias to mid- and small-cap stocks, which could result in a slightly more volatile return profile over time.
Aberdeen World Growth & Income ( Bronze Rated)
Aberdeen World Growth & Income is a good offering for investors seeking income from global equities, says analyst Richard Whitehall. The managers aim for the fund to yield more than 110% of the MSCI World Index and so far in its three year tenure, it has done so comfortably. Performance since inception at the end Oct 2009 has been strong, albeit to some extent aided by the strong performance of yielding stocks over that time.
The fund has outperformed the Morningstar Global Large-Cap Value Equity category by 3.2% on an annualised basis over the three years since inception. The track record of the management team in terms of their other global equity mandates, over longer time periods, is also very strong.
Newton Global Higher Income ( Silver Rated)
The talent and consistent approach behind this fund continues to benefit investors, says analyst Muna Abu-Habsa. Stocks must exhibit a prospective yield greater than 1.25 times of the FTSE World index to be included in the portfolio and are automatically sold when the yield falls below the benchmark average. The dividend threshold results in the manager favouring companies with disciplined corporate management that have the capacity to meet their proposed dividend payments from earnings.
Veritas Global Equity Income ( Gold Rated)
Veritas Global Equity Income remains a topnotch offering in its sector, thanks to its focus on generating a high and growing yield without compromising capital growth, says Abu-Habsa.
Management invests in companies with durable competitive advantages and strong, sustainable cash flows that can lead to dividend payments. Yield is one of the considerations, but the managers are not prepared to invest in high-yielding companies that are unlikely to contribute to capital growth.
