Global Equity Income

Performance and Track Record

Since its inception in May 2011, the Global Equity Income strategy at BankInvest has demonstrated a strong performance record. The strategy has achieved an annualized return of 11.63% (as of June, 2024), outperforming its benchmark with a 2.61% excess return over the same period. This consistent performance underscores the commitment to delivering stable, risk-adjusted returns to the investors.

Investment Philosophy

Academic research suggests that “dividend investing” outperforms the general market index. This is a robust pattern found in many markets and across time. This pattern is also robust to the definition of "dividend investing".

The fund has a risk averse investment philosophy. The most certain aspect about investing in stocks is that they are risky. Hence, the first pillar of the investment philosophy is about risk. "Risk" is incorporated into the portfolio design (equally weighted ~50 stocks and broadly diversified on sectors, countries/regions (DM only)) and into the stock selection by focusing on “Need to have” products and services over “Nice to have” – the resilience of the former becomes obvious in times of economic uncertainty.

Since dividends are more "certain" than price returns, the second pillar of the investment philosophy is dividends, which in the long run is paid by cash flows. Hence, a clear focus on cash flows in the financial analysis. We pay strong attention to the cash generation and the usage of cash. Paying dividends generally reduces the agency costs of free cash flows, limiting managements spending on the alternatives, share buy-backs and M&A, both of which on average are usually ill timed over the cycle.

Lastly, the third pillar is price return. We do not disregard price return, but since the market is unpredictable, we want to be paid for our patience in form of dividends. We generally consider downside protection before upside potential.

The strategy applies a fundamental bottom-up investment process based on own financial models and projections.

Team Longevity and Expertise

The Global Equity Income strategy benefits from a seasoned and stable management team. Michael Clemens, with over 30 years of industry experience, has been at the helm since the strategy’s launch. He is supported by Kresten Johnsen and Aleksander Edemann, who bring additional expertise and fresh perspectives to the team. This combination of experience and innovation ensures that our strategy remains robust and adaptable to market changes.

Sustainability and ESG Integration

At BankInvest, ESG considerations are integral to our investment process. We were pioneers in launching ESG-focused funds, and our commitment to sustainable investing is unwavering. Our Global Equity Income strategy excludes producers of fossil fuels and tobacco, aligning with our broader ESG objectives.

Our independent ESG and Risk teams collaborate closely with the Portfolio Management team, ensuring a comprehensive analysis of ESG risks and opportunities.

• Højt Udbytte Aktier A
• Højt Udbytte Aktier Akk. A