Barings Global Dividend Champions Fund Celebrates 3 Year Anniversary
Oct 28, 2019
The Fund makes long-term investments in a carefully curated selection of exceptional and highly robust businesses. Only circa 125 companies globally are good enough to meet the criteria for inclusion in the strategy’s investible universe, which includes passing a series of cash-based, fundamental stress tests.
The Fund is placed in the top six percent of Funds in its sector1, the Morningstar Global Equity Income sector, since launch and has delivered annualised returns, net of fees, of +10.72% (as of 20 October 2019), compared to its benchmark, the MSCI World Net Total Return Index, which has achieved 10.95% over the same time period2.
Managed by Darryl Lucas, Head of Equity Income at Barings, the fund consists of 35 holdings3. The fund manager leverages the expertise of Barings’ Global Equity Platform, which comprises 58 investment professionals researching across a broad range of regions and sectors.
Darryl Lucas, Head of Equity Income at Barings and Portfolio Manager, Barings Global Dividend Champions Fund, commented:
“Markets have been strong in the three years since launch, and we are pleased that this more ‘cautious’ equity income strategy has been a top performer in its sector. We firmly believe that an equity investment process that focuses on companies which are more in control of their own destiny, and which shuns investments in overly cyclical, unpredictable and indebted businesses, can deliver strong total returns over the long run, whilst also lowering drawdowns in more challenging times.
Versus a market more enchanted with short-term outcomes, we strongly emphasise the long run - in the three years since launch we have initiated positions in only ten new companies, an average of just over three new holdings per year, demonstrating our truly long-term perspective.”
Neil Godfrey, Managing Director - Head of UK & EMEA Distribution, added:
“The Barings Global Dividend Champions Fund is designed to meet the needs of investors who want access to long-term growth but reduce downside in periods of market weakness. This is particularly relevant at this late stage in the cycle. Coupled with an attractive dividend growth trajectory over time, this strategy offers a potential solution for long-term investors looking to allocate to equities.”
Learn more about the investment philosophy behind the Barings Global Dividend Champions Fund in this recent episode of Barings’ Streaming Income podcast.
2 Source: Bloomberg. Fund performance data shown for class I USD Inc
3 As of 20 October 2019
Barings is a $325+ billion* global financial services firm dedicated to meeting the evolving investment and capital needs of our clients and customers. Through active asset management and direct origination, we provide innovative solutions and access to differentiated opportunities across public and private capital markets. A subsidiary of MassMutual, Barings maintains a strong global presence with business and investment professionals located across North America, Europe and Asia Pacific.
*As of June 30, 2019
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