This Strategy aims to achieve long-term returns through a differentiated approach to income investing. Instead of focusing on traditional, capital intensive sources of dividends, we target those with sustainable payouts. The Strategy seeks and continues to hold shares in Quality companies with enduring competitive advantages.
01A focus on Quality companies - world leaders with long term sustainable businesses maintained through high barriers to entry and competitive advantages |
02Seeks strong sustainable dividend growth and above market dividend yield - companies generating sustainably high levels of free cash flow to drive future dividend growth |
03Seeks greater uncertainty in an uncertain world - very downside aware with historically smaller drawdowns in falling markets |
General risks. Past performance is not a reliable indicator of future results and performance targets may not be achieved; losses may be made.
Specific risks. Charges from capital: For Inc-2 and Inc-3 shares classes, expenses are charged to the capital account rather than to income, so capital will be reduced. This could constrain future capital and income growth. Income may be taxable. Concentrated portfolio: The portfolio invests in a relatively small number of individual holdings. This may mean wider fluctuations in value than more broadly invested portfolios. Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Derivatives: The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Emerging market (inc. China): These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems. Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company. Style bias: The use of a specific investment style or philosophy can result in particular portfolio characteristics that are different to more broadly-invested portfolios. These differences may mean that, in certain market conditions, the value of the portfolio may decrease while more broadly-invested portfolios might grow.