Global High Dividend

Strategy description

The Global High Dividend strategy invests in undervalued stocks that offer attractive and sustainable dividend yields and is well-diversified from a sector and country allocation point of view. Quantitative screening is combined with fundamental analysis to identify stocks that trade below intrinsic value coupled with an ability to grow their dividend in the future. We focus on finding attractive dividend payers from a valuation perspective and not the highest yielders.

Objective

We aim to outperform the MSCI World net return index over a full market cycle, with an attractive risk-return profile and a higher dividend yield. Our investment approach aims to generate better risk-adjusted returns than the market and provide defensive characteristics in declining markets.

Key information

Investment Style Value
Investment Universe Global equities
Benchmark MSCI (DM) World (Net) Index
Target Tracking error Although we do not have a predefined tracking error target, the tracking error range is between 3-6% through the cycle
Base Currency Euro
Maximum Regional Exposure The regional weights are capped at 15% relative to the MSCI-World weightings
Maximum Sector Exposure To avoid concentration in a few sectors the overweight position of a sector relative to the MSCI-World sector weighting is capped at 10%
Number of Holdings Typically between 60 – 100


NN Investment Partners

+44 (0) 207 382 1332

Key elements

  • Attractive through-the-cycle risk profile
  • Distinct dividend-focused value investing style
  • Experienced and pioneering team – More than 20 years of experience and one of the industry’s leading dividend-investing houses

Documents

Latest insights

We screen over 65,000 stocks on dividend yield, dividend sustainability, liquidity, quality and sentiment factors. The stocks which meet our minimum criteria are then subjected to a comprehensive evaluation based on fundamentals. Stocks ranking favourably in terms of dividend sustainability, valuation and risk considerations are eligible for inclusion in the final portfolio. Single stock weights are capped at 5% and will typically range between 0.4% to 2% depending on conviction levels.

NN Investment Partners

+44 (0) 207 382 1332

Key elements

  • Attractive through-the-cycle risk profile
  • Distinct dividend-focused value investing style
  • Experienced and pioneering team – More than 20 years of experience and one of the industry’s leading dividend-investing houses

Documents

Latest insights

Bruno Springael

Bruno Springael

Senior Portfolio Manager, Global High Dividend

Experience since 1987

Moudy El Khodr

Moudy El Khodr

Senior Portfolio Manager, US High Dividend

Experience since 1997

NN Investment Partners

+44 (0) 207 382 1332

Key elements

  • Attractive through-the-cycle risk profile
  • Distinct dividend-focused value investing style
  • Experienced and pioneering team – More than 20 years of experience and one of the industry’s leading dividend-investing houses

Documents

Latest insights