How Global Income Funds Differ

Funds in the global equity income sector differ considerably - but there are some stock types which crop up across the peer group for their superior dividend capabilities

Jeffrey Schumacher, CFA 26 September, 2017 | 10:38AM
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Funds in the Global Equity Income category are expected to share one characteristic: Their portfolio dividend yield should be higher than the yield offered by the broader market.

Yet, how funds arrive at the portfolio yield can differ. Some funds like Kempen Global High Dividend apply an absolute dividend yield hurdle, 3% minimum dividend yield at initiation, for their portfolio candidates, while others like Newton Global Income apply a relative yield screen, considering only stocks that have a prospective dividend yield of 125% of its FTSE World Index benchmark.

Fidelity Global Dividend aims for a portfolio yield that should exceed 125% of the yield for the MSCI ACWI Index, but can invest in stocks that yield below the market yield as long as it meets the portfolio-level target.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
BGF Global Equity Income D2 USD23.76 USD-0.84Rating
BNY Mellon Global Income B Acc2.53 GBP-0.01Rating
Fidelity Global Dividend Y-Acc-USD26.45 USD0.18Rating
Kempen (Lux) Global High Dividend A53.82 EUR0.72Rating
Lazard Global Equity Income B Acc2.24 GBP-0.07Rating
NN (L) Global High Div I Cap EUR659.80 EUR0.70Rating

About Author

Jeffrey Schumacher, CFA  is fondsanalist bij Morningstar Benelux

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