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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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
BGF Global Equity Income D2 USD23.77 USD-0.32Rating
BNY Mellon Global Income B Acc2.55 GBP0.18Rating
Fidelity Global Dividend Y-Acc-USD25.76 USD0.20Rating
Kempen (Lux) Global High Dividend A55.86 EUR0.45Rating
Lazard Global Equity Income B Acc2.29 GBP0.27Rating
NN (L) Global High Div I Cap EUR673.55 EUR-0.07Rating

About Author

Jeffrey Schumacher, CFA  is fondsanalist bij Morningstar Benelux